By Francis Kobena Tandoh
Power Distribution Company (PDS) says it stands vindicated by the court’s decision in matter with the Electricity Company of Ghana, according to a statement on Wednesday.
According to a statement by the company, PDS observed that the company made no misrepresentation regarding the financial instruments.
“Power Distribution Services (PDS) confirms that the arbitral tribunal has issued its final award. The award found that PDS made no misrepresentation regarding the financial instruments. Accordingly, PDS considers itself vindicated on the core allegations, consistent with its position from the outset,” read the statement.
It added, “Among other things, the Tribunal:
- Rejected all of ECG’s claims for damages;
- Found that PDS held a genuine belief in the validity of the financial instruments it provided to ECG;
- Fully accepted the results of the independent investigation that found that “there was no information to suggest that … PDS … committed or conspired to commit fraud or other malfeasance” in relation to the financial instruments.”
The company said it was reviewing the decision with its counsel and will provide further update following that review.
It ended by saying that the statement issued does not constitute acceptance of the tribunal’s reasoning, and PDS expressly reserves all rights and remedies, including in relation to other parties.
The Electricity Company of Ghana (ECG) on Wednesday, November 5, 2025 secured a decisive legal victory in London after an international arbitration tribunal dismissed all claims brought against it by Power Distribution Services Ghana Limited (PDS).
The ruling, delivered after nearly three years of proceedings, ended a long-running dispute over the termination of the PDS concession agreement with the ECG and the government of Ghana.
Background
In 2019, PDS took over the management of ECG under a 20-year concession agreement, which was part of the Millennium Challenge Compact (MCC) programme between the Government of Ghana and the Millennium Challenge Corporation (MCC) of the United States.
The agreement was intended to bring private-sector efficiency into ECG’s operations and improve electricity distribution across the country. However, just months into the arrangement, the Government of Ghana, through ECG, suspended and later terminated the contract.
The termination followed revelations that the payment guarantees provided by PDS—through Al Koot Insurance and Reinsurance Company of Qatar—were fraudulent.
These guarantees were a key requirement of the deal, designed to secure PDS’s financial obligations under the concession.
Despite assurances from PDS that it had fulfilled all preconditions for the transfer, investigations revealed that Al Koot had not authorised the guarantees in question. Subsequent court rulings in Qatar, including from the Qatari Court of Cassation, confirmed that the documents were indeed forged.
The Legal Battle
Following the termination, PDS initiated arbitration proceedings in London, claiming ECG’s actions were wrongful. The company sought a declaration of wrongful termination, direct costs of about US$39.4 million, and alleged lost profits of US$351.5 million.
ECG, represented by Omnia Strategy LLP, led by Cherie Blair KC, robustly defended the case, maintaining that the termination was fully justified and in the national interest. ECG argued that PDS had failed to exercise due diligence in verifying the authenticity of the payment guarantees—an omission that fundamentally undermined the concession.
The Tribunal’s Decision
After years of legal submissions and hearings, the London-seated tribunal dismissed all of PDS’s claims in their entirety. The tribunal upheld ECG’s position that the fraudulent guarantees went to the heart of the concession and justified its termination of the agreement.
Significance of the Ruling
The ruling is a major win for ECG and the Government of Ghana, shielding the state from potential financial liability amounting to hundreds of millions of dollars. It also brings closure to one of the most contentious chapters in Ghana’s recent energy sector history. Enditem
Source: Ghana Eye Report
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