The termination of the concession agreement between electricity service providers, Power Distribution Services (PDS) Ghana Limited and the Electricity Company of Ghana (ECG) will not lead to job losses.
Addressing the press, the Deputy Minister of Energy, Mr William Owuraku Aidoo said the workers of PDS will automatically become employees of ECG as part of the termination which commenced at 9.30 am Wednesday, October 23, 2019.
He said ECG will assume full control of all the assets which were being managed by PDS before the termination of the agreement.
“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.
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.
He insisted that government had no choice than to terminate the deal to save the public purse.
The PDS deal was finally terminated by the government in a statement which communicated the termination of the 25-year power concession agreement with PDS over irregularities found with the company’s demand guarantee.