PDS saga: Tread cautiously – Power Producers tell government

The Chamber of Independent Power Producers, Distribution Companies and Bulk Consumers (CIPDiB) has called on the government to tread cautiously before taking a decision to terminate the concession agreement between the Government of Ghana and the Power Distribution Services (PDS).

The call by the CIPDiB comes on the back of the suspension of the concession agreement with PDS for what government has described as ‘fraudulent’ act by the company in the transaction.

Speaking  to journalists at the inauguration of a 15-member Board of the CIPDiB in Accra, Chief Executive Officer (CEO) of the Chamber , Mr. Eliplim Kobla Afetorgbor stressed on the need for government to take a critical look at the concession agreement before deciding on the best line of action for the state.

Mr. Afetorgbor said, “Two parties to this power arrangement came together and after expressing satisfaction with the terms of engagement, signed it. So, if the government is coming back to say that it cannot continue with this kind of agreement, it has to be done with caution to avoid heavy cost or embarrassment.”

The chamber said the signing of the concession agreement meant that both parties were satisfied with the processes and so any attempt to abrogate the agreement by the government ought to be done in a manner that would not cause the state to suffer losses.

Mr. Afetorgbor disclosed that the Chamber would respond to specific details and make its position on the matter known to Ghanaians at the appropriate time.

Government on Tuesday suspended the concession agreement with PDS  over what it described as “fundamental and material breaches of PDS’ obligation in the provision of Payment Securities for the transaction which had been discovered upon further due diligence.”

Information Minister, Kojo Oppong-Nkrumah, told journalists at a briefing on Thursday that investigations into the issue have already commenced.