The Electricity Company of Ghana (ECG) has scored a major legal victory in London after an international arbitration tribunal dismissed all claims brought against it by Power Distribution Services Ghana Limited (PDS), bringing a decisive end to one of Ghana’s most high-profile energy disputes.
The ruling, delivered after nearly three years of arbitration proceedings, definitively settles the controversy surrounding the termination of the PDS concession agreement, a deal once touted as a transformative reform in Ghana’s power distribution sector.
The London-seated tribunal rejected every argument and claim made by PDS, upholding ECG’s position that fraudulent guarantees presented by PDS “struck at the very core of the concession” and justified the termination of the agreement.
This outcome represents a landmark victory for ECG and the Government of Ghana, shielding the state from potential financial liabilities amounting to hundreds of millions of dollars. It also closes a turbulent chapter in the nation’s electricity sector.
“This ruling vindicates the Government of Ghana’s decision to safeguard national interest and maintain integrity in the management of critical public assets,” a senior official at ECG said following the decision.
The case stemmed from the 2019 termination of the PDS concession agreement, which had been signed in July 2018 as part of the Millennium Challenge Compact II programme. The agreement granted PDS the right to manage ECG’s assets and electricity distribution operations across Ghana’s southern zone.
However, the government terminated the contract after discovering that PDS had failed to provide a valid payment guarantee, a key requirement for assuming control of the electricity distribution network.
In 2020, PDS initiated arbitration proceedings against ECG and the Government of Ghana, seeking to have its distribution licences reinstated and the termination declared unlawful. Among its demands, PDS sought declarations that ECG had breached provisions of the transaction agreements and unlawfully abridged its rights under the concession.
But after extensive legal arguments, witness testimonies, and document reviews, the tribunal found no merit in PDS’s claims, siding entirely with ECG.
This ruling not only ends the long legal battle but also restores confidence in the government’s handling of the matter and its commitment to accountability and transparency in large-scale national agreements.
The decision allows ECG to refocus its resources on improving power distribution efficiency and customer service delivery without the shadow of the PDS case hanging over its operations.
It also sends a strong signal to investors and international partners that Ghana will defend its public interests vigorously and ensure that all contractual engagements are backed by genuine and verifiable guarantees.
In July 2021, the Accra High Court had already dismissed a similar suit by PDS challenging the termination, reinforcing ECG’s legal standing in Ghana before the matter proceeded to international arbitration.
With this London tribunal decision, ECG’s long-running dispute with PDS is now conclusively resolved, marking a turning point for Ghana’s power sector governance.