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Done deal! The government finally terminates PDS deal

Information Minister Kojo Oppong Nkrumah

Government has terminated the Power Distribution Services concession agreement with the Electricity Company of Ghana with immediate effect, Information Minister Kojo Oppong Nkrumah has announced.

The minister told a press conference in Accra Wednesday morning, “Government has commenced the necessary process to terminate the agreement.” The process started at exactly 9:30 pm, the minister said.

This comes after days of back and forth the government of Ghana had with the Millennium Challenge Corporation (MCC) over the concession agreement with PDS.

The government in a letter dated October 18, 2019, to the MCC announced its decision to terminate the PDS agreement which came into effect on March 1, 2019, and saw PDS take over the management of Ghana’s major power distribution company, ECG. The government arrived at this decision after its investigations found that PDS entered the agreement with a forged document, which is the demand guarantee classified as “condition precedent” in the agreement.

But Ghana’s decision did not sit well with the US government which has given the Ghana government October 30 to reverse the decision or face the consequences of the decision, which will be to lose 190 million dollars under the MCC Compact II. Ghana would not also be considered for the MCC Compact III.

But Kojo Oppong Nkrumah explained that government took the difficult decision to terminate the PDS agreement because “the two sides were not able to agree”.

He, therefore, said the procedure to revert everything back to the ECG would be done with “dispatch”.

He, however, maintained that the government of Ghana and the USA would “continue to work together in other areas of cooperation”.

More to follow.

by: Naa Anyema

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