Government welcomes arbitration ruling in PDS-ECG dispute

The Ministry of Energy and Green Transition has expressed satisfaction with the ruling by the London Court of International Arbitration (LCIA) in the long-standing dispute between Power Distribution Services (PDS) and the Electricity Company of Ghana (ECG).

According to the ministry, it has taken note of the final award rendered by the LCIA in the matter between PDS Ghana Limited and ECG.

In a statement released on Thursday, November 6, 2025, the ministry noted that PDS had initiated arbitral proceedings at the LCIA against ECG, seeking various claims arising from the termination of the concession agreement. After a full hearing, the Arbitral Tribunal, in its final award, dismissed all claims brought by PDS.

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“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,” the statement read.

It added that the Tribunal further found the Demand Guarantees issued in respect of the transaction to be void ab initio (invalid from the outset), and consequently held that the Government of Ghana was entitled to terminate the concession agreement.

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

The ministry further assured 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, in line with President John Dramani Mahama’s Reset Agenda.

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SP/MA

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