The Commercial Division of the Accra High Court has dismissed an application by Power distribution Services (PDS), challenging the cancellation of its operation licenses following the termination of a concession agreement for it to manage the assets of the Electricity Company of Ghana (ECG).
Last year, PDS dragged government to the High Court with a judicial review application asking the court to quash the cancellation of its operation licenses by government, acting through the Energy Commission.
The court, presided over by Justice Akua Sarpomaa Amoah, on Friday threw out the application after dismissing all the reliefs which the applicant sought and upheld the opposition to the application by the Attorney-General, Godfred Yeboah Dame.
Justice Amoah, however, did not give full reasons for her decision, which she said would be in her ruling filed at the court`s registry. The concession was for private sector participation (PSP) in the management of ECG`s assets.
This was to make the utility provider more efficient for Ghana to access four Hundred and Ninety-eight million dollars from the US government for its power sector under the US Millennium Challenge Compact II, popularly known as the power compact.
After winning the concession bid, Meralco of The Philippines came together with a group of companies, including local firms, to form a special purpose vehicle (SPV), called PDS, to satisfy the local content requirement of the transaction.
