Power Distribution Services Ghana takes over from ECG as electricity service provider


A consortium led by Meralco of the Philippines is to take over electricity distribution in the Southern Sector of Ghana from the state-owned Electricity Company of Ghana (ECG) from March 1.

The other partners in the consortium – Power Distribution Services Ghana Limited (PDS) – are Aenergia SA, a Portuguese company with significant operations in Angola, and three Ghanaian-owned companies: TG Energy Solutions, Santa Power Limited and GTS Power Limited who jointly own a 51 percent stake.

A joint statement by ECG and PDS earlier this week said the move follows the execution of the 2nd Millennium Challenge Compact (MCC) with the US government which requires increased private sector investment and ‘the productivity and profitability of micro, small, medium and large-scale businesses.’

Among the six projects within the 2nd Compact is the ECG Financial and Operational Turnaround Project (EFOT), which seeks to introduce a private sector participant in the management and operations of the ECG.

Consequently, the government, under the auspices of the Millennium Development Authority, embarked upon a competitive procurement process, which resulted in the selection of an acceptable partner to manage, operate, and invest in ECG’s operations for 20 years.

The Meralco-led Consortium was declared the winning bidder on 20th April, 2018.

The consortium is expected to strengthen the governance, management and operations of ECG and improve the delivery of power to end users to support socio-economic growth in Ghana.

‘The general public and customers of ECG are hereby informed that effective 1st March, 2019, PDS will be the electricity service provider in all of ECG’s operational areas in the Southern Distribution Zone of Ghana,’ the statement said.

The ECG will continue to operate as a Bulk Energy Trader and the Asset Owner.




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