Business News of 2014-08-14

‘Payment of debts owed ECG by gov't key to accessing $500m compact’

The Millennium Challenge Corporation (MCC) has confirmed that Ghana must meet some key conditions before it can access almost $500 million compact from May 2015.

These conditions include working towards timely payments of all debts owed the Electricity Company of Ghana (ECG), according to Ghana Country Leader for the MCC’s Department of Compact Operations.

“There are also conditions related to ensuring that certain studies are done or are on their way to look at the cost-reflective tariff aspect to make sure it is on track”, Deidra Fair James explained.

Government would also have to intensify efforts for private sector participation in services rendered by ECG, Deidra Fair James said. ECG, which is wholly owned by the government, is responsible for the distribution of electricity in the southern part of Ghana namely, Ashanti, Central, Eastern, Greater Accra, Volta and Western Regions.

Madam Deidra Fair James however, explained there have been very good “preparations with government as well as discussions” on the key conditions, adding she was hopeful of an MCC support to ensure progress.

The United States’ MCC signed a $498.2 million compact with Ghana in August 2014 to transform the country’s power sector by investing in projects focused on distribution, energy efficiency and renewable energy.

The five-year Ghana power compact seeks to create a financially viable power sector that will meet the current and future needs of the households and businesses in the country. Government is also expected to invest at least $37.4 million in the project.

Source: myjoyonline.com
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