The Institute of Energy Security (IES) has stated that the government’s decision to use a restrictive tendering process to select a successor to the Power Distribution Services (PDS) may yield a worse outcome.
A statement released by the think tank and signed by its Executive Director, Paa Kwasi Anamua Sakyi said the termination of the PDS deal comes as a great relief.
The Finance Minister in a statement released over the weekend said the government had to terminate the PDS concession agreement due to what it called “fundamental and material breaches”.
PDS was in July 2019 found to have presented invalid insurance security for the takeover of ECG assets.
Following months of investigations, the government terminated the deal adding that a restrictive tender process will be used in selecting a new concessionaire by December 31, 2019.
But the IES in its statement stated that any attempt to rush the restoration process is likely to produce a worse outcome than the initial one.
The Chamber of Petroleum Consumers (COPEC) had earlier called on government to cause the arrest and prosecution of persons who represented Ghana in signing the now cancelled concession deal with PDS.
COPEC believes that those who led the country to proceed with the deal despite the flaw must not be allowed to walk free.