The Ministry of Energy and Green Transition has announced its commitment to initiating comprehensive, transparent sector reforms in the wake of the favorable ruling by the London Court of International Arbitration (LCIA) regarding the protracted dispute between the Electricity Company of Ghana (ECG) and Power Distribution Services (PDS) Ghana Limited.
The Ministry views the ruling as a major vindication of the government’s decision to terminate the concession, paving the way for renewed focus on energy stability and strong corporate governance.
Arbitration Confirms Void Nature of Guarantees
The highly anticipated verdict from the LCIA saw the Tribunal dismiss all claims filed by PDS, effectively concluding that the company’s demands for compensation following the 2019 termination were entirely without merit.
Crucially, the Tribunal ruled that the Demand Guarantees provided by PDS to secure the transaction were "void ab initio" (invalid from the outset). This finding provides clear legal justification for the government's termination of the 20-year concession agreement, which was part of the Millennium Challenge Corporation (MCC) Compact.
In an official statement signed by Ministry Spokesperson Richmond Rockson, the government expressed relief over the outcome, though it stressed that the entire controversy "should never have arisen." The Ministry attributed the challenges to "weak decisions and lapses in the selection and approval processes" conducted under the previous administration (Source: Ministry of Energy and Green Transition Official Statement, November 7, 2025).
Focus Shifts to Financial Recovery and Governance
The Ministry highlighted the severe economic cost of the initial missteps, noting that the controversy ultimately led to Ghana forfeiting approximately US$190 million in MCC compact funding in 2019-funds originally intended to support vital reforms within ECG.
With the legal battle concluded, the Ministry’s immediate priority is twofold:
Fund Recovery: To ensure the State and ECG fully recover any monies that may be due following the Tribunal's verdict. The Ministry assured the public that all necessary legal and administrative steps are being implemented to reclaim these amounts.
Sector Stabilization: To utilize the legal clarity achieved to accelerate reforms aimed at strengthening corporate governance, improving operational efficiency, and enhancing the financial sustainability of ECG and the wider energy value chain.
The Ministry reaffirmed that its drive for transparency and accountability in the energy sector aligns directly with the development agenda of President John Dramani Mahama’s administration. The favorable LCIA ruling clears a significant legal hurdle, allowing the government to pivot its focus from litigation to long-term sector stability.
Source: Official Statement from the Ministry of Energy and Green Transition (November 7, 2025); London Court of International Arbitration (LCIA) Ruling Summary (November 2025).