The Millenium Challenge Corporation (MCC) of the United States of America has officially terminated the Ghana’s Power Compact following the decison by government of Ghana to terminate PDS deal over certain fundamental breaches.
However, a statement from the US Embassy has hinted that Ghana has lost a $190 million granted by its US partners as part of the PDS deal.
The statement added that, based on the conclusions of the independent forensic investigation, the United States’ position is that the transfer of operations, maintenance, and management of ECG to the PDS on March 1, 2019, was valid, and therefore the termination is unwarranted.
“As such, MCC has confirmed that the $190 million funds granted to Ghana at the March 1 transfer to the 20-year concession from ECG to PDS deal are no longer available,” the statement added.
Further justifying its decision to withhold the undisbursed $190 million as part US$498 million Ghana Power Compact, the US Embassy said its government underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth.
“In this spirit, the United States has worked with the Government of Ghana since the latter’s July 30 suspension of the concession in the hopes of finding a mutually acceptable solution that respected contract sanctity and the Government of Ghana’s interest in restructuring the concession,” the Embassy’s statement said.
Nevertheless, the US government said it remains committed to implementing the first part of the Ghana Power Compact which involves the use of $308 million through the Millennium Development Authority (MiDA) to support important improvements to the infrastructure of ECG, increase reliability and power access to key markets, and advance energy efficiency programs directly benefiting the people of Ghana.