The Ministry of Energy and Green Transition has welcomed the ruling of the London Court of International Arbitration (LCIA) concerning the longstanding dispute between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG). The Ministry described the decision as a substantial endorsement of the government’s position on the disputed concession.
The LCIA rejected all claims submitted by PDS following the termination of its concession agreement with ECG, determining that the company’s requests lacked merit.
Importantly, the Tribunal determined that the Demand Guarantees associated with the transaction were void ab initio—invalid from the beginning—thereby validating the government’s decision to terminate the concession as legally sound.
In a statement issued by Richmond Rockson, the Spokesperson and Head of Communications at the Ministry, the government emphasized that the entire situation “should never have arisen,” attributing the difficulties to poor decisions and shortcomings in the selection and approval processes that occurred under the previous administration.
These errors, the statement noted, led to Ghana losing approximately US$190 million in Millennium Challenge Corporation (MCC) compact funding in 2019—funds that were intended to facilitate essential reforms within ECG.
With the arbitration process now concluded, the Ministry has stated that its primary focus is to ensure that the State and ECG recover any funds that may be owed following the Tribunal’s decision.
“The Ministry assures the public that all necessary legal and administrative measures are being implemented to recover any amounts owed to ECG and the State. We reiterate our commitment to transparency, accountability, and sustainable energy reforms in accordance with President John Dramani Mahama’s development agenda,” the statement underscored.
The Energy Ministry states that the decision paves the way for a renewed emphasis on stabilizing the power sector, enhancing corporate governance, and promoting reforms aimed at improving efficiency and financial sustainability within ECG and the broader energy value chain.
