The Ministry of Energy and Green Transition has welcomed the ruling of the London Court of International Arbitration (LCIA), which dismissed all claims filed by Power Distribution Services (PDS) Ghana Limited against the Electricity Company of Ghana (ECG), bringing closure to one of the most controversial chapters in Ghana’s energy sector.
In a statement released on Thursday, November 6, 2025, and signed by the Ministry’s Spokesperson and Head of Communication, Richmond Rockson, Esq., the government reaffirmed its commitment to transparency, accountability, and the recovery of all amounts due to the state as a result of the arbitration outcome.
“The Ministry assures the public that all necessary legal and administrative steps are being taken to recover any amounts due to ECG and the State as a result of this process.”
Ministry of Energy and Green Transition
The tribunal’s ruling, which follows a prolonged legal dispute between PDS and ECG, has been widely hailed as a vindication of the government’s position that the termination of the concession agreement was lawful and in the national interest.
According to the Ministry’s statement, the London-based tribunal found that the Demand Guarantees provided by PDS to secure the transaction were “void ab initio,” a legal term meaning invalid from the outset.
This finding, the Ministry explained, meant that the guarantees never had any legal effect, and therefore, the Government of Ghana was fully entitled to terminate the concession agreement.
“PDS had commenced arbitral proceedings at the LCIA against ECG, seeking various claims arising from the termination of the concession agreement.
“After a full hearing, the Arbitral Tribunal, in its final award, dismissed all claims sought by PDS.”
Ministry of Energy and Green Transition
The government said the tribunal’s decision affirms Ghana’s commitment to protecting the integrity of public institutions and safeguarding the national interest in all major contractual arrangements.
Government Blames Poor Contract Design
While welcoming the ruling, the Ministry expressed regret that the issue had arisen in the first place, attributing the controversy to poor decisions during the concessionaire selection and approval process under the previous government.
“The poor decisions made during the selection and approval process of the concessionaire, which led to the formation of Power Distribution Services (PDS) under the previous administration, directly contributed to the current outcome.”
Ministry of Energy and Green Transition
According to the statement, Ghana’s failure to properly vet and structure the concessionaire resulted in the loss of approximately US$190 million in compact funding from the U.S. Millennium Challenge Corporation (MCC) and deprived the country of an opportunity to implement crucial reforms in ECG’s management and operations.
The Ministry reaffirmed its resolve to pursue reforms in the energy sector consistent with President John Dramani Mahama’s Green Transition agenda, which prioritises transparency, efficiency, and sustainability in the management of Ghana’s energy resources.
He noted that ongoing efforts under the restructured Ministry of Energy and Green Transition are geared toward building an energy ecosystem that is not only efficient and self-sustaining but also environmentally responsible and aligned with the global transition toward cleaner energy.
Looking Ahead: Lessons and Accountability
The PDS debacle, according to the Ministry, serves as a stark reminder of the need for stronger institutional due diligence and greater accountability in future public-private partnerships.
The government reiterated that lessons from the case will inform ongoing reforms to ensure that similar contractual lapses do not recur.
Energy governance experts have described the LCIA decision as a turning point, one that restores investor confidence in Ghana’s legal processes while reinforcing the need for improved transparency in state-business partnerships.
As Ghana continues to implement reforms under the Green Transition framework, the Ministry’s stance reflects a clear message: the country is committed to protecting national assets, enforcing accountability, and rebuilding trust in its energy institutions.
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