ECG is back as gov’t suspends PDS agreement

Lorlornyofm
By Lorlornyofm July 31, 2019 05:36

ECG is back as gov’t suspends PDS agreement

Government has suspended the concession agreement with Power Distribution Services (PDS), bringing back the Electricity Company of Ghana (ECG) to be in full control of power distribution.

According to Information Minister, Kojo Oppong Nkrumah, the decision was taken after government detected “fundamental and material breaches of PDS’s obligation in the provision of Payment Securities (Demand Guarantees) for the transaction which have been discovered upon further due diligence.”

Breaking the news on Joy News’ PM Express show Tuesday, he said government wants to secure ECG’s assets that were handed to PDS as part of the concession agreement. 

 
This video file cannot be played.(Error Code: 102630)

“We have through deep intelligence detected that they have issues with those guarantees that were provided…they were not valid and as a step, we have taken measure to secure the assets of the state by suspending the concession agreement,” he told host Evans Mensah.

 

The Ofoase Ayeribi MP also disclosed that the Energy Commission has moved to revoke PDS’ distribution license and allow ECG to go back to work while government undertakes a full-scale enquiry.

PDS became the first private company to manage the affairs of ECG after Ghana won the Power Compact II that will inject some $900 million into power distribution.

 

ECG’s struggle to make profit over many years prompted the need for a private investor for the sector.

 

 

Below is the statement from government 

PDS agreement cancelled

Source: Ghana| Myjoyonline.com |Abubakar Ibrahim

Lorlornyofm
By Lorlornyofm July 31, 2019 05:36
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment
View comments

Write a comment

Your e-mail address will not be published.
Required fields are marked*

*

Recent Comments

  • Oxygen

    Oxygen

    Yeah I think it is time the government officials start accounting for their deeds. They cannot just come into power…

    View Article
  • Sammy the VIRUS

    Sammy the VIRUS

    In my estimation,I believe the average man in his quest to satisfy his libido will stop at nothing to have…

    View Article
  • Sammy the VIRUS

    Sammy the VIRUS

    There is this maxim within our local circles that says a man who works at Barkleys bank does not collect…

    View Article