Business News Mon, 12 Feb 2018

Ghana to lose US$119m in ECG privatization grant

Ghana risks losing 119 million dollars under the Power Compact II, if the government does not take steps to meet certain requirements by September this year.

According to the new Country Director of the Millennium Challenge Corporation (MCC), Kenneth James Miller, the amount will be taken out of the 498 million dollars grant given by the U.S government to help in the privatization of Electricity Company of Ghana (ECG), and other projects.

Speaking to an Accra based radio station, Citi FM, Mr. Miller pointed out that Ghana has delayed in meeting many of the requirements.

“We have three years, six months and 30 days until we close and have September 6 this year, for the Government of Ghana to pull a specific trigger on the ECG Concession on a private firm to partner Ghanaian partners”.

“If the date is not achieved, the way the Compact was negotiated between the two governments, the US$ 119 million dollars would be pulled back from the table,” he threatened.

Kenneth James Miller stated that the U.S government and the Millennium Development Authority (MiDA) have done all the necessary works for the compact to run smoothly.

He, however, pointed out that the government of Ghana has reneged on its promised to meet specific schedules ahead of the implementation of the Compact II. He maintained that the government of Ghana must quicken its pace in meeting the requirement to avoid a substantial part of the grant, being yanked back to the U.S Treasury.

“We’re where we’re with delays and so we’re doing a bit more to change the narrative and be much more proactive and aggressive in how we do our work,” he said.

“We need to focus on this as a really a priority for Ghana. Everyone has to get involved and make things quicker with urgency,” he advised.

Meanwhile, the Chief Executive of the Millennium Development Authority (MiDA), Martin Eson-Benjamin has assured that the authority is working to meet all the schedules under the compact.
Source: Prime News Ghana
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