The Ministry of Energy and Green Transition says the government is taking decisive action 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 underpinning the 2019 concession were “void ab initio”—declaring them invalid from the very beginning. This ruling legally justified Ghana’s termination of the PDS agreement.
In a statement issued on Thursday, November 6, 2025, the Ministry criticised what it described as poor decisions made under the erstwhile Akufo-Addo administration, blaming those actions for the financial losses incurred.
According to the Ministry, the flawed processes that led to the selection and approval of PDS directly contributed to the setback. As a result, Ghana forfeited about $190 million in Millennium Challenge Corporation (MCC) compact funding in 2019 and lost an opportunity to implement key reforms within ECG.
The Ministry reaffirmed that government is taking all legal and administrative steps to recover any funds due to the State and ECG. It also reiterated its commitment to accountability, transparency, and sustainable energy reforms aligned with President John Dramani Mahama’s development agenda.
The PDS concession, introduced in 2019 as part of Ghana’s second MCC Compact, was expected to bring private capital and efficiency to ECG. However, it was terminated months later after government investigations uncovered irregularities in PDS’s financial guarantees, ultimately leading to the loss of the $190 million compact support.
Background
The Power Distribution Services (PDS) concession was introduced in 2019 as part of Ghana’s second Millennium Challenge Corporation (MCC) Compact, aimed at boosting efficiency and attracting private investment into the Electricity Company of Ghana (ECG). Under the agreement, PDS took over the management and operation of ECG’s distribution network.
However, months into the concession, government investigations uncovered irregularities in the Demand Guarantees submitted by PDS—documents meant to secure the concession. These guarantees were later found to be invalid, prompting the government to suspend and eventually terminate the agreement.
The termination caused Ghana to lose US$190 million in MCC compact funding, which had been earmarked for critical reforms in the energy sector. PDS subsequently filed claims against ECG at the London Court of International Arbitration (LCIA), but the Tribunal has now dismissed those claims and declared the guarantees “void ab initio.”
This ruling gives the State the legal backing to recover funds and close a contentious chapter in Ghana’s power sector reform efforts.