The government of Ghana has with “immediate effect” suspended its concession agreement with Power Distribution Services (PDS), an official statement announced Tuesday evening.
The government has detected breaches in the contract and has decided to suspend the deal, the Information Ministry said in a statement.
“The Government of Ghana through the Ministry of Finance and the Electricity Company of Ghana (ECG) Ltd. has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect,” Kojo Oppong Nkrumah, Information Minister stated.
He added: “The decision follows 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 Demand Guarantees were key prerequisites for the lease of assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire. The government is conducting a full enquiry into the matter, and the outcome will inform the next course of action”.
“Government has taken steps to ensure distribution, billing and payment services continue uninterrupted. The general public and customers are assured that this development will not interfere with the distribution of electricity services to customers,” he concluded.
PDS took over Electricity Company of Ghana on March 1, 2019.