The Ministry of Energy and Green Transition has welcomed the final ruling by the London Court of International Arbitration (LCIA), which dismissed all claims filed by Power Distribution Services (PDS) Ghana Limited against the Electricity Company of Ghana (ECG).
In a statement issued on Thursday, November 6, the ministry announced that the tribunal’s decision vindicates the government’s termination of the PDS concession agreement. The LCIA ruled that the demand guarantees issued for the PDS–ECG transaction were void ab initio (invalid from the outset), confirming that the Government of Ghana acted within its rights to cancel the deal.
The ministry noted that the controversy surrounding the PDS arrangement stemmed from poor decisions made during the selection and approval of the concessionaire under the previous administration.
These missteps, it said, contributed to Ghana’s loss of approximately $190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019.
It added that legal and administrative measures are underway to recover any amounts due to ECG and the State as a result of the arbitration outcome.
“The Ministry reaffirms its commitment to accountability, transparency, and sustainable energy reforms consistent with President John Dramani Mahama’s agenda,” the statement added.
