Ghana risks losing $ 190 million following PDS fiasco

General News on Wednesday, July 31, 2019

Source: 3news.com

2019-07-31

Energy Minister Peter Amewu fears that the cancellation of the concession agreement with Power Distribution Services Ghana (PDS) will result in significant losses.

In an exclusive interview with TV3 on Wednesday, the minister said Ghana may not be able to access part of the second pact of the Millennium Challenge Corporation dubbed Ghana Power Compact.

"Danger is the second installment of the facility [under the Millennium Challenge Compact]; This is of course what we all need to know if it will be threatened by discovery, "he said.

Ghana is expected to receive the second $ 190 million Millennium Challenge Compact after qualifying for access to these funds.

The country has signed an agreement with the US government to release $ 498.2 million to support the transformation of Ghana's electricity sector and boost private investment.

The first $ 308.2 million was released in 2016.

But Peter Amewu hopes that the Millennium Development Authority would be "interested" in the fact that it was the government's efforts that detected the fraudulent process.

"But I think what the MCCA and the MIDA need to know is that the government has made a decision and of course, it is his efforts that have resulted in that, so I think that they will very happy."

He also explained the three possible consequences of the suspension of the concession agreement:

* if the letter of Al Koot stating that the security of payment was fraudulent is validated, this will automatically result in the termination of the contract;

* the government terminating the contract without validation could have consequences;

* If it turns out that the payment guarantee has been executed, the process will continue.

PDS is a consortium led by Meralco and composed of Meralco, three Ghanaian companies; TG Energy Solutions Ghana Ltd., Santa Power Ltd and GTS Power Ltd with AEnergia SA of Angola.

PDS was mandated to undertake the ECG Financial and Operational Rehabilitation Project and badume the management and operations of ECG.

But the government, on Tuesday, July 30, 2019, suspended the agreement that came into effect on March 1, 2019 because it was sowing illegalities.