PDS workers to revert to ECG
Employees of troubled electricity service provider, Power Distribution Services (PDS) Ghana Limited, will not lose their jobs following the termination of its concession agreement with the Electricity Company of Ghana (ECG), the government has announced.
The Deputy Minister of Energy, Mr William Owuraku Aidoo at a press briefing said the PDS workers will revert to employees of ECG as part of the termination which commenced at 9.30 am Wednesday, October 23, 2019.
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He said ECG will assume full control of all the assets which were being managed by PDS before the termination of the agreement.
Read also: US halts transfer of $190m following termination of PDS deal
"ECG, when all these things have been effected will assume full control of the assets which hitherto has been in possession of PDS. The assertion is that once there was no transfer, if the demand guarantee was not in place as of March 1, then it necessarily means that there was no transfer of workers, so the workers still remain workers of ECG and the ECG will be meeting with unions and general workers body to explain to them exactly what has happened," Mr Aidoo said.
Suspension of PDS distribution licence
The Deputy Minister further disclosed that the distribution licence granted PDS during the concession will be terminated by the Energy Commission today.
"...ECG is writing to the Energy Commission informing it of the termination of the agreement between ECG and PDS, that is the concession," Mr Aidoo said.
"Because if there is no concession agreement, there cannot be licence for PDS to operate. As you know, the sales and retail licence for energy has already been suspended and PDS up until 9.30 am this morning was still in possession of the distribution licence, that one will today be terminated by the Energy Commission as the law demands.
Why concessionaire failed
The Minister of Information, Mr Kojo Oppong Nkrumah explained that the government was unable to compromise with the United States over the agreement because it believes that the concessionaire failed to meet a fundamental term which was to deliver and maintain valid payment securities for the transfer of assets.
He said although, the insurers of the deal have indicated that they do not intend to stand by the guarantees the Americans preferred that the concession was restructured.
"As we have mentioned, the two sides were not able to agree on a common path to resolve this point," Mr Oppong Nkrumah said.
"The Government of Ghana consequently from 9 am this morning commenced the processes to terminate. The necessary documentations are being tiled with PDS, & Energy Commission at the moment. It is expected that residual matters between ECG and PDS will be resolved with dispatch ECG has remained in possession of assets while PDS has been assisting it with some limited services in the period during which the concession was suspended prior to this termination".
He said both parties have agreed to respect the termination of the contract.
