20°C / 22°C
  • Mon
  • 27°C
  • 12°C
  • Tue
  • 25°C
  • 11°C
  • Wed
  • 26°C
  • 14°C
  • Thu
  • 28°C
  • 15°C
  • Fri
  • 29°C
  • 16°C
  • Sat
  • 29°C
  • 16°C
  • Mon
  • 25°C
  • 13°C
  • Tue
  • 21°C
  • 14°C
  • Wed
  • 20°C
  • 14°C
  • Thu
  • 20°C
  • 14°C
  • Fri
  • 22°C
  • 15°C
  • Sat
  • 22°C
  • 15°C
  • Mon
  • 27°C
  • 14°C
  • Tue
  • 26°C
  • 13°C
  • Wed
  • 27°C
  • 14°C
  • Thu
  • 29°C
  • 17°C
  • Fri
  • 30°C
  • 18°C
  • Sat
  • 29°C
  • 18°C
  • Mon
  • 29°C
  • 9°C
  • Tue
  • 28°C
  • 13°C
  • Wed
  • 28°C
  • 16°C
  • Thu
  • 30°C
  • 16°C
  • Fri
  • 31°C
  • 18°C
  • Sat
  • 32°C
  • 18°C
  • Mon
  • 22°C
  • 17°C
  • Tue
  • 26°C
  • 18°C
  • Wed
  • 26°C
  • 19°C
  • Thu
  • 23°C
  • 19°C
  • Fri
  • 25°C
  • 18°C
  • Sat
  • 31°C
  • 22°C
  • Mon
  • 20°C
  • 14°C
  • Tue
  • 25°C
  • 14°C
  • Wed
  • 20°C
  • 16°C
  • Thu
  • 21°C
  • 14°C
  • Fri
  • 22°C
  • 14°C
  • Sat
  • 22°C
  • 16°C
  • Mon
  • 29°C
  • 9°C
  • Tue
  • 29°C
  • 15°C
  • Wed
  • 20°C
  • 12°C
  • Thu
  • 23°C
  • 12°C
  • Fri
  • 26°C
  • 13°C
  • Sat
  • 20°C
  • 12°C
  • Mon
  • 24°C
  • 12°C
  • Tue
  • 23°C
  • 15°C
  • Wed
  • 18°C
  • 14°C
  • Thu
  • 20°C
  • 13°C
  • Fri
  • 23°C
  • 15°C
  • Sat
  • 19°C
  • 14°C
  • Mon
  • 30°C
  • 13°C
  • Tue
  • 29°C
  • 15°C
  • Wed
  • 28°C
  • 15°C
  • Thu
  • 31°C
  • 16°C
  • Fri
  • 32°C
  • 18°C
  • Sat
  • 31°C
  • 18°C
  • Mon
  • 27°C
  • 8°C
  • Tue
  • 34°C
  • 11°C
  • Wed
  • 26°C
  • 18°C
  • Thu
  • 31°C
  • 14°C
  • Fri
  • 34°C
  • 14°C
  • Sat
  • 36°C
  • 15°C
  • Mon
  • 19°C
  • 13°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 30°C
  • 13°C
  • Thu
  • 31°C
  • 15°C
  • Fri
  • 28°C
  • 17°C
  • Sat
  • 31°C
  • 18°C
  • Mon
  • 21°C
  • 11°C
  • Tue
  • 29°C
  • 14°C
  • Wed
  • 20°C
  • 13°C
  • Thu
  • 21°C
  • 10°C
  • Fri
  • 24°C
  • 13°C
  • Sat
  • 22°C
  • 14°C

Ghana loses $190 million US grant over cancelled power contract

The financing was the largest by the United States under Power Africa, which was launched in 2013 by then-president Barack Obama and aims to bring electricity to tens of millions of households in Africa.

FILE: Ghana President Nana Akufo-Addo. Picture: AFP

ACCRA - The United States has cancelled $190 million in grants to Ghana under the “Power Africa” initiative in response to the Ghanaian government’s termination of a contract with a private utility provider, the US embassy said.

The Millennium Challenge Corporation (MCC), a US government foreign assistance agency, agreed in 2014 to provide $498 million in funding to Ghana’s power sector to help stimulate further private investment.

The financing was the largest by the United States under Power Africa, which was launched in 2013 by then-president Barack Obama and aims to bring electricity to tens of millions of households in Africa.

One reform under the agreement involved handing over operations at state-run Electricity Company of Ghana (ECG) in March to Ghana Power Distribution Services (PDS), a consortium led by Philippine electricity company Meralco.

But Ghana’s finance minister informed US officials on Saturday that the government was cancelling the 20-year concession it had signed with PDS, saying payment guarantees provided were not satisfactory.

In a statement on Tuesday, the US embassy said the decision to terminate the contract was unjustified and that the MCC was, therefore, cancelling $190 million in grants.

The remaining $308 million will still be disbursed.

“The United States underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth,” it said.

Ghana’s Information Minister Kojo Oppong Nkrumah told reporters on Wednesday that the U.S. announcement did not represent “a crisis of confidence” between the two governments.

“It has been a difference in opinion which we have mutually agreed to respect,” he said.

Meralco did not immediately respond to a request for comment.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus