The Ministry of Energy and Green Transition has welcomed the London Court of International Arbitration (LCIA) ruling in the long-standing dispute between Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG), describing it as a major vindication of government’s stance on the failed concession.

The LCIA tribunal dismissed all claims filed by PDS following the termination of its concession agreement, ruling that the company’s demands were without merit. The tribunal further determined that the Demand Guarantees underpinning the transaction were void ab initio—meaning invalid from the very beginning—thereby confirming that government’s decision to terminate the concession was legally sound.

In a statement signed by Richmond Rockson, Spokesperson and Head of Communications at the Ministry, the government noted that the controversy “should never have arisen,” attributing the problem to weak decisions and lapses in the selection and approval processes that took place under the previous administration.

According to the Ministry, those shortcomings led to Ghana’s forfeiture of about US$190 million in Millennium Challenge Corporation (MCC) compact funding in 2019—funds originally earmarked to support critical reforms within ECG.

With the arbitration process now concluded, the Ministry said its immediate focus is to ensure that any funds due to ECG and the State are recovered.

“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. We reaffirm our commitment to transparency, accountability, and sustainable energy reforms in line with President John Dramani Mahama’s development agenda,” the statement read.

The Ministry added that the ruling allows the government to refocus efforts on stabilising the power sector, strengthening corporate governance, and advancing reforms to enhance efficiency and financial sustainability within ECG and the wider energy value chain.