Ghana cleared to access $498m Compact II fund

Ghana’s power sector has received a major boost after the country got the nod to access a US$498 million grant under the Ghana Power Compact – Compact II.

The treaty was signed August 2014 between Ghana and the US, represented by the Millennium Challenge Corporation. The fund will help improve the performance of Ghana’s power sector, unlock the country’s economic potential, create jobs and reduce poverty, a statement from MiDA said.

“I am happy to advise that yesterday we met all the conditions precedent to Entry into Force of the Compact and submitted all the required documentation in that respect,” the CEO of the Millennium Development Authority (MiDA) Owura Sarfo said in a statement Wednesday.

This significant milestone was achieved as a result of the collective efforts of several stakeholders. According to the statement, the Ghana government “now has five years to implement the Compact Programme.”

Six projects are scheduled to be implemented under the Power Compact - ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, Access Project, Power Generation Sector Improvement Project and Energy Efficiency and Demand side Management Project.

“MiDA is committed to effectively implementing the Compact programme so as to help solve the power challenges that negatively impact on our businesses, our educational institutions, the economy and our lives,” Sarfo noted.

“We believe that the six projects have been carefully designed to address the root causes of the unavailable and unreliable power in our country which is inextricably linked to the economic development of Ghana and poverty reduction,” he added.