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ECG concession to PDS suspension: what happened in-between

Following the suspension of the Electricity Company of Ghana Concession agreement on July 30 by the Government of Ghana, only five months into the takeover by Power Distribution Services, 3news.com catalogs the sequence of events leading to the suspension.

Below are bullet points summarizing the issues:

  • August 5, 2014 – President John Dramani Mahama signed the Electricity Company of Ghana (ECG) agreement with United States  government through Millennium Challenge Corporation (MCC)
  • A grant of US$498.2 million was allocated to undertake infrastructural and inefficiencies in the power sector: the first tranche of US$350 million of the amount released in 2016 was used to fund ECG
  • May 9, 2016 – Government shortlists 6 companies for the management, operation and investment of electricity distribution in Ghana
  • Per the initial agreement, the concessionaire was to hold 80% stake and manage ECG for a period of 25 years, while the Ghanaian ownership was to be the remaining 20%.
  • April 10, 2018 – The Millennium Development Authority (MiDA) selected  Meralco Consortium from Philippines to hold 49% of shares of ECG
  • The other partners, an amalgamation of Ghanaian businesses: TG Energy Solutions Ghana Ltd, Santa Power Ltd, and GTS Power Ltd, was to hold 51% shares.
  • Eventually PDS was formed to consolidate Meralco and the other companies
  • PDS means Power Distribution Services and is a Meralco-led consortium involving Meralco, Ghanaian-owned TG Energy Solutions Ghana Ltd, Santa Power Ltd, GTS Power Ltd and AEnergia SA of Angola.
  • PDS was expected to invest some US$586 million in the first five years after taking over
  • The transfer of the management of power distribution was officially transferred to PDS on March 1, after earlier failed dates
  • July 08, 2019 – Four months after PDS took over from ECG, Chamber of Independent Power Producers, Distributors and Bulk Consumers (CIPDIB) issued a seven-day ultimatum over a US$ 700m USD debt owed them.
  • July 12, 2019 – PDS gives ECG US$200 million to settle debt owed IPPs
  • July 30, 2019 – Ministry of Information releases statement stating due diligence may have not been done with regard to guarantors of PDS
  • July 31, 2019 – ECG back in charge as managers of power distribution
  • July 31, 2019 – PDS takes note of government’s notice of suspension and promises to cooperate.

By 3news.com|Ghana

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