Reinstate PDS before October 30 – MCC orders Gov’t

The United States of America has asked the Akufo-Addo led administration to reinstate the Power Distribution Service (PDS) as energy distributors in the country before October 30, 2019.

The US government has reiterated that government of Ghana action may attract severe sanctions which include an immediate reversal of the ban on PDS by the Energy Commission.

The Acting Vice President of the Department of Compact Operations for the Millenium Challenge Corporation, Kyeh Kim, in a letter said to be a direct response to the Finance Minister, Ken Ofori Atta’s statement on October 18, ordered the government to reinstate PDS within a stipulated time.

“This letter sets forth a summary of the principle terms persuant to which the Government will reinstate the concession rights of Power Distribution Services Ghana Limited as contemplated under the agreements governing the ECG PSP as in effect on the date hereof (namely, the Lease and Assignment Agreement (LAA), Bulk Supply Agreement (BSA) and Government Support Agreement (GSA and together with the LAA and BSA collectively, the Transaction Agreement) (Concession Restoration) and the general principles the Government will follow in carrying out the Concession Restoration and facilitating a restructuing of the equity interests of PDS (the ‘Restructuring’), extracts of the letter available to The Ghana Report reads.

Find below the press release