Energy Ministry Welcomes Arbitration Ruling on PDS–ECG Case; Says Ghana Lost $190 Million Due to PDS Deal

The Ministry of Energy has expressed satisfaction with the recent arbitration ruling regarding the dispute between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG). According to the Ministry, Ghana ultimately lost US$190 million in 2019 from the U.S. Millennium Challenge Corporation (MCC) as a result of issues surrounding the PDS concession agreement.

In a press statement, the Ministry explained that PDS had taken ECG to the London Court of International Arbitration (LCIA), seeking compensation over the termination of its concession agreement. After a full hearing, the tribunal dismissed all claims made by PDS.

The court further ruled that the demand guarantees used to secure the PDS deal were “void from the beginning,” meaning they were invalid from the start of the transaction. Because of that, the Government of Ghana was justified in terminating the concession agreement.

The Ministry noted that the situation should never have occurred, stressing that poor decisions in the selection and approval process of PDS — done under the previous administration — led to the unfortunate outcome. It added that the missteps not only cost the country US$190 million in MCC compact funding but also caused Ghana to miss a major opportunity to carry out key reforms within ECG.

According to the statement, the Government is now taking all necessary legal and administrative steps to recover any funds owed to ECG and the State.

The Ministry reaffirmed its commitment to transparency, accountability, and sustainable energy reforms in line with President John Dramani Mahama’s energy agenda.

Signed:
Richmond Rockson, Esq.
Spokesperson and Head of Communication
Ministry of Energy and Green Transition