Gov’t suspends PDS deal; ECG back

The government of Ghana has suspended its concession agreement with Power Distribution Services (Limited).

The decision was communicated via a press release by Information Minister Kojo Oppong Nkrumah on Tuesday, 30 July 2019.

The statement said the action to put the agreement on hold was necessitated by “the detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence”.

The government said a full probe has been initiated into the deal and steps have been taken to ensure that “distribution, billing and payment services continue uninterrupted”.

The public has been assured that the development “will not interfere with the distribution of electricity services to customers”.

PDS took over the operations of the Electricity Company of Ghana (ECG) on 1 March 2019 with an expected capital injection of GHS900 million.

Source: Ghana/ClassFMonline.com/91.3FM