In a resounding victory for transparency and accountability, the Electricity Company of Ghana (ECG) has won a landmark international arbitration against Power Distribution Services Ghana Ltd (PDS), marking the end of a four-year legal saga that tested the integrity of Ghana’s energy sector reforms.

The Tribunal, convened under the UNCITRAL Arbitration Rules and seated at the International Dispute Resolution Centre in London, issued its Final Award on November 3, 2025.

Presided over by Toby Landau KC, with co-arbitrators Björn Gehle and Justice Samuel Kofi Date-Bah, the panel unanimously upheld ECG’s right to terminate its concession agreement with PDS following the discovery of a fraudulent payment guarantee.

Origins of the dispute

The arbitration arose from two pivotal agreements signed on July 3, 2018—the Lease and Assignment Agreement (LAA) and the Bulk Supply Agreement (BSA)—which formed the backbone of a $500 million Millennium Challenge Corporation (MCC) grant to Ghana.

Administered by the Millennium Development Authority (MiDA), the concession aimed to inject private sector efficiency into ECG’s operations. PDS, a Ghanaian-led consortium partnered with Meralco of the Philippines, was selected after a rigorous international tender.

However, the transaction unravelled when the insurance-backed Payment Guarantees submitted by PDS were found to be fraudulent.

The guarantees, issued by an unauthorised official of Al Koot Insurance in Qatar, triggered a national crisis and led the Government of Ghana to terminate the agreement—at the cost of forfeiting $200 million of the MCC grant.

Legal Showdown in London

PDS responded by initiating arbitration, seeking $351 million in damages. ECG, with the support of the Government of Ghana stuck to its principles and conviction, mounted a defence.

ECG's legal team made up of Leonard Lamptey, Director legal, Dr. Dominic Ayine, legal advisor and strategist, Edudzi Tamakloe, assistant to the legal advisor and Omnia Strategy LLP, the principal law firm.

The Tribunal addressed six key legal issues, including the validity of the guarantees, jurisdiction over the Transfer Date Confirmation Letter, and whether ECG had the right to terminate under Section 2.6(c) of the LAA.

It found that the guarantees were invalid, PDS had misrepresented their authenticity, and ECG’s termination was lawful.

Outcome and implications

The Tribunal dismissed PDS’s claims and upheld ECG’s counterclaims in part. ECG was awarded costs, including legal fees and tribunal expenses, and reimbursed £6,823.50 for a procedural dispute.

This decision not only vindicates ECG’s actions but also reinforces Ghana’s commitment to due process and institutional integrity. It sends a powerful message: fraudulent conduct by anyone, no matter how sophisticated, will not be rewarded.