11 Abr Pds Concession Agreement
Second, the facts revealed by the medico-government review justified the termination of the current concession, but should not reduce the government`s commitment to private sector participation in the energy sector. As everyone knows today, the concession agreement between the Government of Ghana (GoG) and Power Distribution Services Ghana Limited (PDS) has been terminated by GoG. As part of the agreement, PDS is expected to manage the staff and assets of the Electricity Company of Ghana (ECG) for 20 years, make new investments and introduce operational efficiency gains to improve the reliability of Ghana`s electricity supply. The denunciation of the agreement so soon after the start of the SDP activities raises questions about the process for selecting dealers. «Demand guarantees were essential conditions for asset leasing as of March 1, 2019 in order to secure assets transferred to the dealership,» he said. The United States of America takes note of this decision with regret. Based on the findings of the independent mediality investigation, the U.S. position is that the transfer of the operation, maintenance and management of the Southern Distribution Network to the private dealership was valid on March 1, 2019, and the termination is therefore unjustified. As a result, MCC confirmed that the $190 million awarded to Ghana in the transfer to the 20-year ECG concession to PDS on March 1 is no longer available.
According to the concession agreement, PDS main say that electricity distribution services go to profits that suffer from dey serious debt problems under public ecg. «What should happen is that we should have the courage to terminate the contract, which should not even exist in law. That is because we have breached the framework conditions. It`s a condition of resignation. They should stop being PDS and the contract is taken away from them, and then we will decide whether we still want the concession option or private sector involvement,» said Dr. Kwabena Donkor, who is also an MP for Pru East, on Accra -based on Citi FM. Studies have also shown that local shareholders of the PDS concession financed the $11.5 million of the $12.5 million in payments they made to obtain demand guarantees from operating resources. If the government wanted a 51% interest in the allocation group (SPV) for the management of the concession, it should have «ensured a quality, transparent and well thought-out process after the international tender.»