Power sector judgement debt looming?
Since last week, Ghana has been heated with the discussion
of the suspension of Power Distribution Services (PDS) as the manager of the a
concessionaire that manages electricity distribution in the country.
Many stakeholders have waded into the discussion with others
commending the government for the decision to suspend and investigate the deal
others are also cautioning government to thread cautiously.
The Chamber of Independent Power Producers, Distribution
Companies and Bulk Consumers (CIPDiB) has called on the government to tread
cautiously before taking a decision to terminate the power agreement with the
Power Distribution Services (PDS) Limited.
The chamber explained that,
the signing of the concession agreement meant that both parties were
satisfied with the processes and so any attempt to abrogate the agreement by
the government ought to be done in a manner that would not cause the state to
suffer losses.
"Two parties to this power arrangement came together,
and after expressing satisfaction with the terms of engagement, signed it. So
if the government is coming back to say that it cannot continue with this kind
of agreement, it has to be done with caution to avoid a heavy cost or
embarrassment," the Chief Executive Officer (CEO) of the chamber, Mr
Elikplim Kobla Afetorgbor, stressed when speaking to journalists at the
inauguration of the 15-member Board of the CIPDiB in Accra last week.
We are that government has commenced a full-scale inquiry
into the detected breaches in the concession agreement with the PDS, which is
expected to be completed within 30 days.
According to the Information Minister, Kojo Oppong Nkrumah,
the team conducting the inquiry comprises insurance investigation experts,
officials of the Energy and Finance Ministries and officials of ECG as well as
MIDA.
Without withstanding the fact that, government is confident
that it took a proper decision to suspend the deal, as it says it has material
evidence to proof major breach of agreement by the PDS, a thorough and careful
investigation is needed which gives fair hearing and consideration of other
aspects of the agreement.
This is to help avoid any possible judgement debt against
the state.
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