Chairman of the Technical Committee of the Public Utilities Regulatory Commission (PURC), Ishmael Agyekumhene, says the suspension of concession agreement government had with Power Distribution Services (PDS) is a situation of a contract gone wrong.
Government of Ghana, through the Ministry of Finance and the Electricity of Ghana (ECG), suspended the concession agreement with the Power Distribution Services (PDS) Ghana Limited with immediate effect.
The decision follows the detection of fundamental and material breaches of PDS’s obligation in the provision of payment Securities (Demand Guarantees) for the transaction which has been discovered upon further due diligence.
The demand guarantees were key prerequisites for the lease of the assets on 1st March, 2019 to secure the assets that were transferred to the concessionaire.
In an interview with Ekourba Gyasi on Atinka AM Drive, Ishmael Agyekumhene Chairman of the Technical Committee of the Public Utilities Regulatory Commission (PURC), Ishmael Agyekumhene asked the general public to desist from drawing a conclusion on the whole situation and wait for PDS’s side of the whole contract.
Meanwhile, Research and Policy Analyst at the Institute of Energy Security, Mikdad Mohammed, says government’s decision to suspend concession agreement with the Power Distribution Services (PDS) Ghana Limited is a step in the right direction.
Mikdad Mohammed mentioned that the PDS did not meet some conditions from the onset.
He noted that per government’s concession agreement with PDS, the latter had some terms to meet even before the take over which it failed to do.
Ghana | Atinkaonline.com | Vivian Adu Boatemaa