Energy Ministry Blames Akufo-Addo Era Missteps for $190m MCC Funding Loss
Energy Ministry blames flawed PDS deal under Akufo-Addo for loss of $190m MCC funding after tribunal ruling
- Tribunal dismisses PDS claims against ECG after three-year arbitration
- Energy Ministry cites lack of due diligence under Akufo-Addo administration
- Ghana lost $190m MCC compact and critical power sector reforms
Ministry of Energy has laid blame for the country’s loss of $190 million in Millennium Challenge Corporation (MCC) funding on what it describes as poor leadership and flawed decision-making under the administration of former President Nana Addo Dankwa Akufo-Addo during the controversial Power Distribution Services (PDS) concession deal.
The Ministry’s remarks follow a ruling by an international arbitration tribunal in London that dismissed all claims filed by PDS against the Electricity Company of Ghana (ECG), marking the end of a three-year legal dispute over the failed power concession.
In a statement shared on X (formerly Twitter) on Wednesday, November 5, 2025, Richmond Rockson, Spokesperson for the Ministry of Energy, said the outcome should serve as a lesson on the importance of transparency and due diligence in major national contracts.
“The government has taken note of the tribunal’s decision in the PDS–ECG arbitration. This situation should never have arisen in the first place,” Mr. Rockson stated.
“The poor decisions made during the selection of the concessionaire, which led to the creation of Power Distribution Services (PDS) under the Akufo-Addo administration, brought us here.”
According to him, the mishandling of the PDS arrangement not only cost Ghana $190 million in compact funds from the U.S. MCC in 2019 but also deprived the country of a valuable opportunity to reform and modernize the Electricity Company of Ghana (ECG).
Mr. Rockson added that the government remains committed to ensuring accountability and will pursue all available means to recover any funds due to the state.
“The government assures the public that all necessary steps will be taken to recover every amount due to ECG and the Government of Ghana,” he affirmed.
The PDS concession was signed in 2019 with the aim of improving efficiency and financial sustainability in Ghana’s power distribution sector. However, it was abruptly terminated after government investigations uncovered alleged irregularities in PDS’s financial guarantees, a move that ultimately cost Ghana significant international support and reform opportunities.
