Government to Recover ECG Assets After Winning $190 Million PDS Arbitration Case in London
John Abdulai Jinapor (Minister for Energy)- Picture credit MoE
Accra, Ghana — The Government of Ghana says it will take all administrative and legal steps to recover assets and revenues owed to the Electricity Company of Ghana (ECG) following a landmark victory at the London International Court of Arbitration (LCIA) against Power Distribution Services (PDS).
The ruling, delivered this week, dismissed all claims filed by PDS and upheld the government’s 2019 decision to terminate the controversial power concession agreement. According to official documents from the LCIA, the tribunal concluded that PDS had no valid basis for compensation or damages and that the demand guarantees underpinning the concession were void ab initio meaning invalid from the outset.
The judgment further confirmed that ECG lawfully terminated both the Lease and Assignment Agreement (LAA) and the Bulk Supply Agreement (BSA) after PDS failed to satisfy critical preconditions under Ghanaian and Qatari law.
“Fraud involving third-party insurance officials rendered the guarantees legally void,” the ruling stated, adding that there was “no evidence of fraud or malfeasance by PDS itself,” but the legal deficiencies invalidated the entire transaction.
The tribunal also found that conditions precedent including the provision of valid payment securities were never fulfilled, effectively preventing the agreement from entering its operational phase.
Reacting to the ruling, the Ministry of Energy described the decision as “a vindication of the government’s position” and pledged to ensure that all monies and assets belonging to ECG are retrieved.
Head of Communications at the Energy Ministry, Richmond Roxon, in an interview monitored by DM Media Online reiterated that the ruling clears Ghana of potential judgment debt and opens the door for recovery actions led by the Attorney General’s Office. “This is good news for the country. Every single penny collected by PDS that rightly belongs to ECG will be recovered,” Roxon said. “The arbitration confirms that the guarantees were fraudulent, and that ECG acted lawfully. The Attorney General will take the necessary legal and administrative steps to recover all revenues and assets.”
He added that the government is determined to prevent similar controversies in future concession agreements, describing the PDS saga as “a painful lesson in prioritizing national interest over private gain.”
The dispute dates back to March 2019, when PD, a private consortium led by Meralco Consortium took over ECG’s operations under a 20-year concession aimed at improving power distribution efficiency.
However, by October 2019, the government terminated the agreement after uncovering fraudulent demand guarantees presented by PDS’s Qatari partners, Al Koot Insurance and Reinsurance Company.
The fallout led to the suspension of Ghana’s $190 million second tranche of funding from the U.S. Millennium Challenge Corporation (MCC), triggering diplomatic tension and domestic controversy over how the deal was vetted.
PDS subsequently filed for arbitration in London, claiming the termination breached contractual terms, a claim now entirely dismissed.
The Energy Ministry says the government will now focus on recovering outstanding revenues collected by PDS during its brief tenure, along with assets, equipment, and vehicles still under the defunct company’s control.
While Mr. Roxon declined to provide specifics, he confirmed that the Attorney General’s Office will spearhead recovery proceedings in collaboration with ECG and the Ministry of Finance.
The Ministry has also confirmed that consultations are underway to design a new, transparent model for private participation in ECG operations, focused on billing and collection rather than full concession.
“The government has approved private participation only in billing and collection not a wholesale concession,” Roxon explained. “We will not repeat the mistakes of the past.”
However, experts also warn that the loss of the $190 million MCC grant continues to limit Ghana’s ability to modernize its power infrastructure, a challenge the Energy Ministry says it is seeking to address through new partnerships and investment frameworks.
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