PDS vows review after claiming partial vindication in ECG dispute

Power Distribution Services Ghana Limited (PDS) says the London arbitration tribunal’s final ruling has partly vindicated its position, even though it lost the $390 million compensation case against the Electricity Company of Ghana (ECG).

In a statement issued on Wednesday, November 5, PDS said the tribunal’s findings showed it acted in good faith and made no misrepresentation regarding the financial instruments at the heart of the concession agreement.

“The award found that PDS held a genuine belief in the validity of the financial instruments it provided to ECG,” the statement read.

It added that the tribunal “fully accepted the results of the independent investigation that found there was no information to suggest that PDS committed or conspired to commit fraud or other malfeasance.”

PDS also said the tribunal “rejected all of ECG’s claims for damages,” maintaining that these findings were consistent with its long-held position that it operated transparently and within the terms of the concession.

However, the company stressed that the statement “does not constitute acceptance of the tribunal’s reasoning,” adding that it is “reviewing the decision with counsel and will provide a further update following that review.”

PDS said it “expressly reserves all rights and remedies, including in relation to other parties.”

The tribunal’s ruling, issued after nearly three years of proceedings, dismissed PDS’s $390 million claim and affirmed ECG’s argument that invalid financial guarantees undermined the concession, prompting the government to end the deal in 2019.

The decision could conclude one of Ghana’s most contentious energy sector disputes, shielding the state from significant financial exposure.

An Accra High Court had already dismissed a related lawsuit by PDS in 2021, further weakening its claims.

The London arbitration ruling now affirms ECG’s legal and contractual position.

PDS said it would determine its next steps after completing consultations with its legal team.