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Gov’t seeks to replace PDS by restricted tendering

Source Myjoyonline

The government says it remains committed to private sector participation in Ghana’s energy sector.

This follows the termination of the controversial Power Distribution Service (PDS) concession agreement over irregularities.

A letter signed by Finance Minister, Ken Ofori Atta has recommended a restricted tender process to replace the PDS.

Mr. Ofori Atta tells the Millennium Challenge Corporation (MCC) and the Millennium Development Authority (MiDA) — both of the US — that the process “shall be undertaken timeously by fast-tracking some of the processes without compromising the integrity and transparency of the procurement processes.”

This is to beat the “limited time” available before the Compact II Program with the government of Ghana and the US expires.

The US would pump some half-billion dollars into Ghana’s energy sector under the so-called Compact II Program, which requires Ghana to allow private sector participation in the energy sector.

PDS was chosen to perform this role until the government suspended — and now terminated — the agreement with the company following controversies surrounding the demand guarantee it submitted to Ghana before taking over the assets of the Electricity Company of Ghana.

The government says these challenges do not “diminish” its commitment to allowing private sector participation in the energy sector.

“Government intends to see the process through in a manner that follows due process and protects the interest of all parties,” the Finance Minister’s letter said.

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