International relations expert Dr Vladimir Antwi-Danso has downplayed claims by the minority in parliament that the PDS brouhaha will affect Ghana’s international image.

According to him, the incident will have no repercussions on the country’s global standing.

“No, it won’t have any damage. It won’t cost us any damage, I don’t see why we are politicising this issue,” he told Starr News.

The opposition National Democratic Congress’ (NDC) spokesperson on Foreign Affairs in Parliament Samuel Okudzeto Ablakwa says the PDS issue will badly affect the country’s reputation.

“The damage the PDS debacle has done to Ghana’s image in international circles will require a long and hard effort to repair. As we await the official response of the Americans on the future of the Compact; we must resolve to fix our broken system of governance and recognize that we cannot command the respect we expect from the comity of nations if we cannot acquit ourselves with integrity when they extend a helping hand. Really sad that the year of return has fast become the year of corruption,” he wrote on Facebook.

The government of Ghana has cancelled its concession agreement with the private investor for the management of ECG despite opposition by the American government.

The Ghana government argues PDS failed to satisfy some key condition precedents under the contract.

Consequently, the US government has withdrawn the second tranche of $190million earmarked for improvement in Ghana’s energy sector under the millennium challenge compact.



Background

On March 1, 2019, Ghana Power Distribution Services, Ltd. (PDS) assumed operation and management of the staff and assets of the Electricity Company of Ghana (ECG) under a 20-year concession agreement.

According to the Millenium Challenge Compact, Private sector participation is a central reform under MCC’s Ghana Power Compact. This was critical to the long-term sustainability of related infrastructure investments and the financial recovery of the energy sector in Ghana.

The Compact comprised two tranches of funding: $308 million available upon the official start of the current Compact, and a second tranche of $190 million, which was available upon a successfully executed concession agreement, which the United States maintains occurred on March 1, 2019.