Government to recover funds owed to ECG after PDS arbitration ruling – Energy Ministry

The Ministry of Energy and Green Transition says the government is taking concrete steps to recover funds owed to the Electricity Company of Ghana (ECG) and the State, following the final ruling by the London Court of International Arbitration (LCIA) in the Power Distribution Services (PDS) dispute.

The LCIA Tribunal dismissed all claims filed by PDS against ECG and ruled that the Demand Guarantees underlying the 2019 concession were “void ab initio” — meaning invalid from the outset — giving Ghana the legal right to terminate the agreement.

In a statement on Thursday, November 6, 2025, the Ministry slammed the ‘poor decision’ made under the erstwhile Akufo-Addo government for causing the financial loss.

“The government notes that this situation should never have arisen in the first place. The poor decisions made during the selection and approval process of the concessionaire, which led to the formation of Power Distribution Services (PDS) under the previous administration, directly contributed to the current outcome,” it said.

Government welcomes arbitration ruling in PDS-ECG dispute

It added, “As a result of those decisions, Ghana lost approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019 and missed a critical opportunity to implement key reforms within the Electricity Company of Ghana (ECG).”

The Ministry emphasised that “all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State as a result of this process,” while reaffirming its commitment to accountability, transparency, and sustainable energy reforms in line with President John Dramani Mahama’s development agenda.

The PDS concession, introduced in 2019 as part of Ghana’s second MCC Compact, was intended to bring private investment and efficiency into ECG’s operations.

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