Pds And Ecg Agreement
Concession contract between Ghana newly introduced private managers, PDS for the last 20 years, but the plan to say fall into the water. The concession contract with pdS was terminated in October 2019 on the instruction of President Nana Akufo Addo. The preference of a majority of Ghanaian property would be understandable if, out of patriotism, domestic investors were willing to accept lower returns than their foreign counterparts. It does not appear that anyone has made that argument. Domestic capital is sometimes favoured because it is considered more patient. But in this case, GoG has reached a defined agreement, backed by a performance guarantee, so that the fear of capital flight should not be of great concern. Following the charge, the Energy Commission announced in July that an interim agreement will enter into force under which EKG will take over the role of electricity distributor pending an investigation. Accra, GHANA – On October 19, 2019, the Government of Ghana (GoG) informed the Millennium Challenge Corporation (MCC) of Washington, D.C. of its decision to terminate the concession agreement between the Ghana Electricity Company (ECG) and the private operator Power Distribution Services Ghana Ltd (PDS). Qatari insurer Al Koot, which provided PDS with its eKG application guarantee, reportedly informed ECG that the warranty had been signed by an employee without the authority to do so.
Al Koot therefore declared the agreement inconclusive. WASHINGTON, DC, October 23, 2019 – In response to the Ghanaian government`s disappointing decision to terminate the concession contract between the Electric Company of Ghana Ltd (ECG) to private operator Power Distribution Services Ghana Ltd (PDS) – a necessary condition under the Ghana Power Compact – are the $190 million awarded to Ghana for ecG`s 20-year concession to PDS , more available. In recent weeks, the national debate on this issue has focused primarily on issues related to performance assurance and the subsequent expiration of the $190 million tranche II amount under the MCC Compact. However, there is an important issue on which the GoG and public opinion should think together and seriously before the country enters into a new concession contract. In 2014, Ghana signed an agreement plus the Millennium Challenge Compact, which acts dey on behalf of the U.S. government saying that private sector investment goes into the power sector.