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Ghana denies involvement of local partner in award of electrification contract

Xinhua, March 17, 2016 Adjust font size:

The government of Ghana has denied the involvement of a Ghanaian partner in the award of a rural electrification contract to the China Hunan Construction Engineering Group (CHCEG).

Parliament on Monday approved of the 92 million-US- dollar contract to be executed by the Chinese firm.

However, a minority New Patriotic Party (NPP) Member of Parliament (MP) suggested that a local company, Smarty, was part of the contract.

Smarty was said to have inflated prices in a bus branding contract with the Ministry of Transport, an issue that compelled Minister of Transport Dzifa Aku Ativor to resign.

The Deputy Minister of Power, John Jinapor, however denied the assertion that government had signed a new deal with Smartty's Management and Production Limited.

In a radio interview here, Jinapor said the contract for the supply and erection of electrical materials and equipment for the electrification of 556 communities in the Eastern, Volta and Northern Regions was between the government of Ghana and CHCEG.

The contract is being funded from a 98 million-US- dollar credit facility agreement between the government and the Industrial Commercial Bank of China Limited.

The deputy minister explained that the only time the advertising company came close to the negotiations was when they had to sit in as the Public Relations company of the Chinese company and not as a negotiator.

Meanwhile, in a related development, Smarty has issued a statement denying the claim that they had signed a contract with the government of Ghana.

The company issued a statement on Tuesday stating that reports tying them to the deal were "mischievous" and "defamatory" and threatened to sue media houses which ran the story. Endit