ECG wins London arbitration over PDS concession dispute

An international arbitration seated in London on Tuesday (4 November) ruled in favour of the Electricity Company of Ghana (ECG), dismissing all claims by Power Distribution Services Ghana Limited (PDS) related to the termination of a major power concession.

The dispute, which had been before the tribunal for nearly three years, stemmed from PDS’s contention that ECG wrongfully terminated the Lease and Assignment Agreement (LAA) and the Bulk Supply Agreement (BSA) signed in July 2018.

PDS sought nearly US$391 million in damages, citing lost profits and costs, and argued that it had fulfilled all conditions for the transfer of operations from ECG.

ECG, represented by Cherie Blair KC and Omnia Strategy LLP, argued that PDS had relied on fraudulent Payment Guarantees issued without proper authority under Qatari law.

Investigations confirmed the guarantees were unauthorised, prompting ECG to terminate the concession.

In its counterclaim, ECG sought US$315 million to US$551 million depending on whether the agreements were deemed operative.

After three years of hearings and evidence, the tribunal dismissed all of PDS’s claims, clearing the way for ECG to pursue its counterclaims.

The ruling, sources say, affirms ECG’s position that the concession termination was justified and highlights the risks of reliance on invalid financial instruments in high-stakes infrastructure deals.

ECG was represented by a team of Ghanaian lawyers, including Godwin Kudzo Tameklo, in collaboration with Omnia Strategy as international counsel.

The decision effectively brings closure to one of Ghana’s most closely watched commercial disputes and opens the path for ECG to recover sums owed.