PDS deal termination: Vice President of Imani lauds government for terminating PDS contract; says government can recoup lost $190m in 6 months

Kofi Bentil
  • The Ghanaian government has terminated the agreement between Electricity Company of Ghana and Power Distribution Services.
  • This is despite the United States' description of the termination as "unwarranted".
  • But the Vice President of IMANI Africa said this is a good decision.

The Vice President of policy think tank, IMANI Africa, Kofi Bentil, has extolled the government for not wavering on their stance to terminate ECG’s agreement with PDS despite pressure from the US government.

In a Twitter post, Kofi Bentil said the government could make the $190 million which the US government withdrew from the cancellation of the contract with the Power Distribution Services from oil revenue.

“$190m, we make that from 6 months of Oil revenue! I support The Gov’ts decision to correct the PDS mess and do things right!!”

The Finance Minister, Ken Ofori Atta in a presentation to Parliament in 2018 said that Ghana was set to benefit from oil revenue with the sum of $1.1 billion in 2019.

He explained that Ghana would get US$249.60 million in Corporate Income Tax, US$602.80 million from the Carried and Participating Interest, US$227.10 million from Royalties, and US$1.10 million from Surface Rentals.

On October 19, 2019, the US government released a statement saying that it had stopped the release of $190 million granted to Ghana following the termination of the concession agreement with Power Distribution Services (PDS).

The statement issued by the US Embassy described the termination of the PDS deal as unwarranted explaining that the concession was valid despite claims that portions of it were not valid.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke