• The government of Ghana has terminated its concession deal with Power Distribution Services Limited regarding the distribution of electricity in Ghana.
• The Electricity Company of Ghana (ECG) has officially taken over power distribution from the Power Distribution Services (PDS).
• A letter dated 18th October, 2019 signed by Finance Minister Ken Ofori-Atta said: “Following consultations with Government, we wish to emphasize that Government remains strongly committed to the Compact and to private sector participation in the Electricity Company of Ghana.”
It was President Akufo-Addo’s decision to terminate the Power Distribution Services deal according to the Managing Editor of the New Crusading Guide newspaper, Kweku Baako Jnr.
According to him, some members of the ruling government were not happy with the President’s decision because they feared termination will come with some consequences; nonetheless, he decided to put the interest of Ghanaians first.
"WITHIN THE GOVERNMENT, IT’S NOT EVERYBODY WHO WAS ENTHUSED ABOUT THE OPTION OF TERMINATION BECAUSE OF THE IMPLICATIONS FOR THE GHANAIAN ECONOMY. SOME THOUGHT MR PRESIDENT LET’S COMPROMISE; THEY FELT A DIFFERENT OPTION SHOULD HAVE BEEN PURSUED . . . ,"
"Within the government, it’s not everybody who was enthused about the option of termination because of the implications for the Ghanaian economy. Some thought Mr President let’s compromise; they felt a different option should have been pursued . . . ," he disclosed while contributing to a panel discussion on Peace FM’s morning show 'Kokrokoo'.
According to him, some of these kingpins, "had an eye on 2020; (they felt) there might be an economic challenge prior to the election. The leader of this administration who is the President said no; if that is the consequences let it be so; he doesn’t believe the good people will refuse or fail to see other positive indicators. So this decision to terminate was driven by the President himself against the wishes of some of his colleagues."
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Background
The government of Ghana has terminated its concession deal with Power Distribution Services Limited regarding the distribution of electricity in Ghana.
A letter dated 18th October, 2019 signed by Finance Minister Ken Ofori-Atta said: “Following consultations with Government, we wish to emphasize that Government remains strongly committed to the Compact and to private sector participation in the Electricity Company of Ghana.”
“Secondly, the facts detailed below clearly justify the discontinuance of the current concession which, it should once again be emphasized, does not in any way diminish the Government of Ghana’s commitment to private sector participation in Ghana’s energy sector. Indeed, Government intends to see this PSP through in a manner that respects due process and fidelity to the relevant transaction documents and underlying Compact,” the letter said.
ECG Officially Takes Over From PDS
The Electricity Company of Ghana (ECG) has officially taken over power distribution from the Power Distribution Services (PDS).
A statement dated 23rd October, 2019 indicated that ECG has assumed full operational and financial control which was being managed by the PDS. This comes after government’s termination of its concession agreement with Power Distribution Services (PDS) on claims of fraud.
Credit to Source: Peacefmonline.com
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