The Power Distribution Services Ghana Limited (PDS) has lost the judgement debt case it filed against the Electricity Company of Ghana (ECG) at an international arbitration tribunal in London, United Kingdom.
According to a report by citinewsroom.com, the tribunal dismissed all claims brought against ECG by PDS in the nearly three-year-old case.
PDS sued ECG after the latter terminated the controversial PDS concession agreement, which sought to bring private sector efficiency into ECG’s operations and improve electricity distribution across the country.
The then Nana Addo Dankwa Akufo-Addo government, through the ECG, suspended and later terminated the concession agreement after it emerged that the payment guarantees provided by PDS were fraudulent.
Following the termination, PDS sued ECG, accusing Ghana’s power distributor of wrongfully cancelling the contract.
It asked the international arbitration tribunal to declare that the termination of the concession agreement was illegal.
ECG officially severs ties with PDS
It also asked the tribunal to award it a judgement debt of nearly $390 million — direct costs of about US$39.4 million, and alleged lost profits of US$351.5 million.
The ECG, through its lawyers, argued that the termination of the agreement was fully justified and in the interest of Ghana.
It added that PDS had failed to exercise due diligence in verifying the authenticity of the payment guarantees — an omission that fundamentally undermined the concession.
The international arbitration tribunal ruled in favour of Ghana’s power distributor, stating that the fraudulent guarantees justified its termination of the concession agreement.
BAI/AE
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