Ghana terminates PDS concession but still hopes for private participation

The United States’ Millennium Challenge Corporation (MCC) on 23 October withdrew $190m of grant funding to Ghana, the same day the government formally began the process of cancelling a concession agreement between the state-owned Electricity Company of Ghana (ECG) and Power Distribution Services Ghana Ltd (PDS). The cancellation follows controversy over the validity of payment securities provided by PDS as part of the transaction.In a statement on 23 October, the US embassy in Accra said it had been informed of the decision on 19 October and “notes this decision with regret”.