The Ministry of Energy and Green Transition has welcomed the decision of the London Court of International Arbitration (LCIA) in the long-standing case between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG).

According to the Ministry, the LCIA has dismissed all claims brought by PDS against ECG following the termination of the concession agreement.

The arbitral tribunal, after a full hearing, ruled that all claims sought by PDS were without merit.

Importantly, the Tribunal found that the Demand Guarantees issued in respect of the transaction were void ab initio (invalid from the outset).

This means the Government of Ghana was legally entitled to terminate the concession agreement, the Ministry explained.

The government, in a statement signed by Richmond Rockson, Spokesperson and Head of Communication at the Ministry, noted that the situation “should never have arisen in the first place.”

It blamed poor decisions made during the selection and approval of the concessionaire, processes undertaken under the previous New Patriotic Party's administration, for the circumstances that led to the dispute.

As a result of those earlier decisions, Ghana reportedly lost approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) in 2019, which was expected to support critical reforms within the Electricity Company of Ghana.

The Ministry assured the public that all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State.

It reaffirmed its commitment to transparency, accountability, and sustainable energy reforms in line with President John Dramani Mahama’s development agenda.