Business News of Wed, 12 Sep 20182
Ghana receives $190 million from US after meeting compact milestone
Ghana is to receive the second allocation of Compact funds from the United States of America through the Millennium Challenge Corporation (MCC) in the amount of $190 million after the Ghanaian government met all the required conditions to access the funds. On September 6, 2018, MCC submitted a letter acknowledging Ghana’s achievement of this milestone to the President, His Excellency Nana Akufo-Addo. Since the start of the Ghana Power Compact implementation phase, MCC granted access to the first allocation of Compact funds in the amount of $308.2 million. MCC’s investment in the Ghana Power Compact totals $498.2 million.
A delegation led by Board Chair of the Millennium Development Authority (MiDA) Professor Yaa Ntiamoah- Baidu, and Chargé d’Affaires of the U.S. Embassy in Ghana Christopher J. Lamora, presented the Letter to the Vice President H.E. Mahamudu Bawumia, who received it on behalf of the President. “Today marks a significant milestone in the implementation of the Power Compact Program. With these funds, MiDA together with its implementing entities will be able to carry out the planned investment and reform activities aimed at strengthening our country’s power distribution sector,” remarked the MiDA Board Chair.
“Meeting this important milestone is a testament to the commitment of the Ghanaian government to reform its power sector in an effort to bring critical services to its people. But much work remains. With only three years remaining in the MCC Ghana Power Compact, we must continue to work together until the concession is complete and the path is paved to inject private-sector investment and expertise to transform the viability of the Ghanaian power sector,” MCC Acting CEO Brock Bierman said.
Chargé d’Affaires Christopher J. Lamora congratulated the Ghanaian government, stating: “We believe that promising times for Ghana are on the horizon. The United States is proud to be Ghana’s partner in strengthening the foundations for increased operational efficiency, improved financial health, and creating an investment climate with stable power and reliable energy that Ghanaian customers need and deserve.”
H.E Vice President Bawumia acknowledged the notification and thanked the U.S. Government and the MCC for their partnership through the Ghana Power Compact; a manifestation of the strong cooperation that Ghana has with the United States.
“Today is a great day and we are entitled to celebrate our achievement,” he said. “However we have a significant number of project activities to be carried out in order to meet all milestones. I therefore urge all stakeholders to continue to collaborate and maintain the alacrity they have demonstrated so far.” He reiterated Government’s commitment to ensuring that the Compact delivers its goal to reduce poverty through economic growth, by transforming the power distribution sector.