The planned takeover of the Electricity Company of Ghana (ECG) by the Power Distribution Services (PDS) Ghana Ltd has been postponed, a statement from the Millennium Development Authority MiDA has said.
Power Distribution Services (PDS) Ghana Ltd was expected to take over the operations of ECG effective February 1, 2019.
“MiDA is confident that the transfer will occur in the next few weeks. The Board approved an extension of time to allow the Parties and Stakeholders, namely Government of Ghana (GoG), ECG and PDS, to conclude their Consultations and finalize work on some critical aspects of the Transaction, in order to facilitate a smooth transfer,” the statement said.
According to the statement, “MiDA will announce a new Transfer Date in early February.”
Power Distribution Service promised some massive turnaround of ECG when they finally take over.
PDS is expected to invest over GHc500 million in ECG.
The Millennium Development Authority has indicated there are clauses in the concession that would result in the “agreement” being reviewed every five years, that is if, they are not able to meet the Key Performance Indicators (KPI’s) under the concession.