The Government of Ghana through the ‘Ministry of Finance and the Electricity Company of Ghana (ECG) Limited has suspended the concession agreement with Power Distribution Services (PDS) Ghana Limited with immediate effect.
A statement released by the Minister of Information, Kojo Oppong Nkrumah revealed that the decision follows die detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has 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 transferral to the concessionaire.
He said “the government is conducting a full enquiry into the matter, and It 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.”
A statement released by the Minister of Information, Kojo Oppong Nkrumah revealed that the decision follows die detection of fundamental and material breaches of PDS’ obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which has 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 transferral to the concessionaire.
He said “the government is conducting a full enquiry into the matter, and It 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.”