Business News of 2014-06-07

Ghana reaches stage of MCC-funded programme

Ghana has reached the last stage of preparation for the second Millennium Challenge Corporation (MCC)-funded compact.

Over the last two years, Ghana's compact development core team and their MCC counterparts have engaged in series of consultations, discussions and workshops, to put finalisation to the projects proposed under the compact.

Components

The compact has six projects which include Electricity Company of Ghana (ECG) Financial and Operational Turnaround project, access to electricity project and regulatory strengthening and capacity building project.

The rest are power generation sector improvement project, demand side management energy efficiency Project and NEDCo Financial and Operational turnaround project.

A statement made available to the presidential press corps by the Millennium Development Authority at Peduase Lodge, where the leadership of the Ghana team met with President John Dramani Mahama, said between June 9 and 13 this year, the Government of Ghana and the MCC would enter into negotiations on the compact in Washington DC.

A former Minister of Finance, Prof. Kwesi Botchwey, would head the Ghana team.

Final compact

The final compact is expected to be signed (pending MCC Board approval, congressional no-objection and Ghana’s parliamentary approval) in August this year.

The total compact fund from the MCC is $498.2 million, made up of two tranches. Tranche one is about $308.2 million, while tranche two is $190 million.

However, disbursement of tranche two would be dependent on performance.

The statement said a new feature of the compact would be Ghana's contribution of $37.37 million, representing 7.5 per cent of the compact fund.

The contribution of Ghana will bring the total fund to $537.57 million.

The goal of the compact, the statement said, was poverty reduction through private sector-led economic growth.

Source: graphic.com
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