Philippines-based Meralco Consortium has acquired the Electricity Company of Ghana (ECG) –now called Power Distribution Services (PDS) Ghana Limited – effective February 1, 2019.
Facing financial struggle said to be a result of successive tariff decreases over the years, the national power utility has stressed that job security is a top priority of the deal.
Pre-takeover, ECG’s debt was said to be close to $407 million. As part of the takeover deal, which was awarded to Meralco by the Millennium Development Authority, Meralco Consortium will inject $580 million into the company, quelling rumors of a 60 percent tariff increase.
“The takeover will bring efficiency and we will all see the improvement in the new company,” said Millennium Development Authority CEO Martin Eson-Benjamin, adding that the company will also work to remove financial losses in the system.