Kojo Oppong Nkrumah
The
inquiry into circumstances leading to the alleged non-fulfillment of conditions
precedent to the full operationalisation of the concession agreement by the
Power Distribution Services (PDS) Ghana Limited in the takeover of Electricity
Company of Ghana (ECG) Limited is almost concluded.
Yesterday
ended the 30-day time frame within which the investigative team was expected to
conclude and present a report. According to Information Minister Kojo Oppong Nkrumah,
the report would be made public very soon.
He
told Citi FM in Accra yesterday that a
final determination would be made to President Akufo-Addo when he returns from his
trip to Japan.
“The
teams from Qatar and the United States of America are back and are completing
their report. There is also some ongoing work with MiDA here in Ghana. So that
will also be factored into the report and when the President returns from his
trip, the final determination will be made and announced. But my understanding
is that we are wrapping this up and when the final determination is made, a public
announcement will be made,” the minister said.
“The
enquiry is supposed to be done within a 30-day period. The brief and
understanding I have is that the enquiry has come to an end and the teams have
brought their feedback from both Qatar and America and have also consulted with
the team doing the local end of the work with MiDA and when the President comes
all of that will be put together,” he added.
Initial Announcement
On
Tuesday, 30th July 2019, through the Ministry of Finance and the ECG, the
government announced the suspension of the concession agreement with the PDS
and said it was initiating an enquiry into the circumstances leading to the
non-fulfillment of conditions precedent to the full operationalisation of the
agreement by the PDS.
PDS Fight Back
The
embattled power supply company has already dismissed any foul play in its
contract to distribute power and its Board Chairman, Philip Ayesu, recently told
DAILY
GUIDE that the outcome of the investigations commissioned by the
government would clear them of any wrongdoing.
Mr.
Ayesu was unfazed about the hullaballoo that had greeted the transaction,
saying the PDS had been following the terms of the contract signed to operate
ECG facilities.
He
ruled out claims that the PDS played a fast one on the government with the
alleged breaches in the demand guarantee (insurance cover).
ECG Privatization
In
August 2014, Ghana and United States of America – acting through the Millennium
Challenge Corporation (MCC) – entered into a Millennium Challenge Compact.
The
Compact provides for a grant of up to US$498,200,000 to advance economic growth
and reduce poverty in Ghana, and commits Ghana and the MCC to a five-year
economic development programme that will fund investments in the country’s
power sector. As part of the deal, the
government agreed to put ECG in private hands to be supervised by the
Millennium Development Authority (MiDA).
Per
the Mahama-led initial agreement, the concessionaire was to hold 80% stake and
manage ECG for 25 years, while the Ghanaian ownership was to hold the remaining
20% stake.
However,
President Akufo-Addo, upon assumption of office and through the then Energy
Minister Boakye Agyarko, got the US government to review the terms where the
Ghanaian ownership now stands at 51% share with the foreign investor taking the
remaining 49%.
The
Ghanaian local consortia holding the 51% of the shares in PDS include TG Energy
Solutions Limited (TG), with 18%; Santa Baron Ventures Limited (Santa), with
13%; as well as GTS Engineering Services Limited (GTS) and TBK Ghana Limited
(TBK), with 10% each.
The remaining 49% are for Pilipino consortia (foreigners) including Manila Electric Company Limited (Meralco), with 30% shares and Aenergia, an Angolan company, with 19% shares.
By Melvin Tarlue
