PDS Report Almost Ready

PDS Report Almost Ready

The inquiry into circumstances leading to the alleged non-fulfillment of conditions precedent to the full operationalisation of the concession agreement by the Power Distribution Services (PDS) Ghana Limited in the takeover of Electricity Company of Ghana (ECG) Limited is almost concluded.
 
Yesterday ended the 30-day time frame within which the investigative team was expected to conclude and present a report. According to Information Minister Kojo Oppong Nkrumah, the report would be made public very soon.
 
He told Citi FM in Accra yesterday that a final determination would be made to President Akufo-Addo when he returns from his trip to Japan.
 
“The teams from Qatar and the United States of America are back and are completing their report. There is also some ongoing work with MiDA here in Ghana. So that will also be factored into the report and when the President returns from his trip, the final determination will be made and announced. But my understanding is that we are wrapping this up and when the final determination is made, a public announcement will be made,” the minister said.
 
“The enquiry is supposed to be done within a 30-day period. The brief and understanding I have is that the enquiry has come to an end and the teams have brought their feedback from both Qatar and America and have also consulted with the team doing the local end of the work with MiDA and when the President comes all of that will be put together,” he added.
 
Initial Announcement
 
On Tuesday, 30th July 2019, through the Ministry of Finance and the ECG, the government announced the suspension of the concession agreement with the PDS and said it was initiating an enquiry into the circumstances leading to the non-fulfillment of conditions precedent to the full operationalisation of the agreement by the PDS.
 
PDS Fight Back
 
The embattled power supply company has already dismissed any foul play in its contract to distribute power and its Board Chairman, Philip Ayesu, recently told DAILY GUIDE that the outcome of the investigations commissioned by the government would clear them of any wrongdoing.
 
Mr. Ayesu was unfazed about the hullaballoo that had greeted the transaction, saying the PDS had been following the terms of the contract signed to operate ECG facilities.
 
He ruled out claims that the PDS played a fast one on the government with the alleged breaches in the demand guarantee (insurance cover).
 
ECG Privatization
 
In August 2014, Ghana and United States of America – acting through the Millennium Challenge Corporation (MCC) – entered into a Millennium Challenge Compact.
 
The Compact provides for a grant of up to US$498,200,000 to advance economic growth and reduce poverty in Ghana, and commits Ghana and the MCC to a five-year economic development programme that will fund investments in the country’s power sector. As part of the deal, the government agreed to put ECG in private hands to be supervised by the Millennium Development Authority (MiDA).
 
Per the Mahama-led initial agreement, the concessionaire was to hold 80% stake and manage ECG for 25 years, while the Ghanaian ownership was to hold the remaining 20% stake.
 
However, President Akufo-Addo, upon assumption of office and through the then Energy Minister Boakye Agyarko, got the US government to review the terms where the Ghanaian ownership now stands at 51% share with the foreign investor taking the remaining 49%.
 
The Ghanaian local consortia holding the 51% of the shares in PDS include TG Energy Solutions Limited (TG), with 18%; Santa Baron Ventures Limited (Santa), with 13%; as well as GTS Engineering Services Limited (GTS) and TBK Ghana Limited (TBK), with 10% each.
 
The remaining 49% is for Pilipino consortia (foreigners) including Manila Electric Company Limited (Meralco), with 30% shares and Aenergia, an Angolan company, with 19% shares.
Source: Daily Guide

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