PDS concept sound but undermined by mismanagement and personal interests - Mahama
7th November 2025
President John Dramani Mahama has addressed the long-running controversy surrounding the failed Power Distribution Services (PDS) concession, asserting that the initiative’s failure stemmed from poor management and personal interests rather than flaws in the concept itself.
Speaking on the matter, President Mahama said, “PDS was not a bad thing; it was just handled wrongly. Many people had personal interests in PDS, and that’s why it failed.”
He explained that the PDS model—introducing private sector participation in Ghana’s power distribution—had the potential to improve efficiency and service delivery, but mismanagement and conflicts of interest derailed its success.
Highlighting successful examples of public-private collaboration, Mahama cited Enclave Power, which purchases bulk electricity from the national grid and distributes it within Ghana’s free zones enclave. The company, he noted, maintains a 99% revenue collection rate and provides uninterrupted power supply to industries.
“The lights are always on in the industrial enclave, and the industries there do not experience blackouts like other areas,” he added, stressing that similar partnerships could enhance both electricity and water services nationwide.
The PDS concession, part of Ghana’s second Millennium Challenge Corporation (MCC) Compact, was terminated by the government after irregularities were discovered in the company’s financial guarantees.
The dispute later went before the London Court of International Arbitration (LCIA), which dismissed all claims filed by PDS against the Electricity Company of Ghana (ECG), ruling that the financial guarantees were invalid from the outset.
Following the ruling, the Ministry of Energy and Green Transition announced that steps are being taken to recover any funds owed to ECG and the State. The ministry reaffirmed its commitment to protecting public resources and ensuring greater transparency and accountability in future energy sector partnerships.