Ghana Sets $2 Billion Estimate to Fund Power Deal Restructuring

Ghana is setting a $2-billion estimate for the restructuring of contracts with independent power producers to reduce the country’s bill for excess capacity and to settle arrears, according to two people familiar with the matter, Bloomberg News reported. While Finance Minister Ken Ofori-Atta already pledged to allocate $1 billion from February’s Eurobond sale, the country is also talking with multilateral lenders such as the World Bank to help raise a further $1 billion, said the people who asked not to be identified because the matter is private. West Africa’s second-biggest economy currently pays as much as $500 million per year for power it doesn’t need and is in talks with independent producers to end the practice, Ofori-Atta said last year. Read more