By Francis Kobena Tandoh
The government is taking all measures possible to recover any amount owed the Electricity Company of Ghana (ECG) as far as its agreement with Power Distribution Services (PDS) is concerned, according to a statement on Thursday.
The statement, signed by Richmond Rockson, spokesperson and head of communication at the Ministry of Energy and Green Transition, observed that the dispute between the two parties, which should not have arisen, led to Ghana losing 190 million U.S. dollars from the U.S. Millennium Challenge Corporation (MCC) in 2019 and an opportunity to implement key reforms within ECG.
“The Ministry of Energy and Green Transition wishes to inform the public that the Government of Ghana has taken note of the final award rendered by the London Court of International Arbitration (LCIA) in the matter between Power Distribution Services and the Electricity Company of Ghana,” read the statement.
“The Ministry assures the public all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State as a result of this process. The ministry reaffirms its commitment to accountability, transparency, and sustainable energy reforms consistent with His Excellency President John Dramani Mahama’s agenda,” it added.
It would be recalled that PDS commenced arbitral proceedings at LCIA against ECG, seeking various claims arising from the termination of the concession agreement between the ECG and PDS.
After a full hearing, the Arbitral Tribunal, in its final award dismissed all the claims sought by PDS.
The Tribunal further found that the Demand Guarantees issued in respect of the transaction were void ab initio (invalid from the outset) and consequently held that the Government of Ghana was entitled to terminate the concession agreement. Enditem
Source: Ghana Eye Report
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