Ghana loses Ksh.19B U.S. grant after cancelling electricity deal with private firm
The United States has cancelled a multi-billion ‘Power Africa’ deal with Ghana.
The move comes days after the Ghanaian government terminated a contract with a private electricity company.
Ghana’s Minister for Finance and Economic Planning Ken Ofori-Atta informed U.S. officials on Saturday that Ghana would no longer work with Power Distribution Services (PDS).
“It has been a difference in opinion which we have mutually agreed to respect,” he said as quoted by VOA.
Started in 2013 by then US President Barrack Obama, the Power Africa deal was aimed at providing electricity to millions of households in Africa.
However, the $190 million (Ksh. 19.6 billion) deal seems to have collapsed.
On Tuesday, the U.S. embassy responded to the statement and said the decision by the Ghanaian government to terminate the contract was unjustified.
“The United States underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth,” the embassy said as quoted by VOA.
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