MiDA confident of completing all projects as Ghana Power Compact nears its end

The Millennium Development Authority (MiDA) says it is confident that it would complete all of its projects under the Ghana Power Compact two programme funded by the Millennium Challenge Corporation (MCC).

The funds comprised US$308.2 million from the Millennium Challenge Account and US$23 million Counterpart Funds from the Government of Ghana to enhance Electricity Company of Ghana’s (ECG) operational efficiency, to cut commercial and technical losses, improve ECG’s finances and power distribution efforts across the country.

Chief Executive of the Authority, Mr Martin Eson-Benjamin adds that his outfit is fully committed to meeting the aspirations of the compact, the expectations of the government of Ghana and the government of the United States of America.

“Counting from today, the Power Compact has one year, six months and 12 days to end, the termination of the ECG’s Private Sector Participation Project and with the related events of last year is now behind us, the countdown to completion has begun.”, Mr Eson-Benjamin said at a press soiree in Accra.

Additionally, MiDA is constructing two Bulk Supply Points (BSP) at Pokuase and Kasoa to ensure efficient and sustainable delivery of power to consumers in the micro, small, medium and large industries and institutions, as well as markets, economic enclaves and domestic consumers.

To ensure low electricity bills, the authority is currently undertaking a retrofitting exercise of public institutions namely; the Korle Bu Teaching Hospital, University of Ghana, the Ministries amongst others.

MiDA will also construct two primary sub-stations at the University of Ghana Medical Hospital and Noguchi Medical Research Centre to ensure a reliable supply of electricity in assisting the hospitals' operations.

Another sub-station will also be constructed at Kanda to supply power to the 37 Military Hospital respectively.

The Authority will also support the training of students in energy auditing at the University of Renewable Energy, Sunyani, Kwame Nkrumah University of Science Technology (KNUST) and the Accra Technical University.

In October last year, Ghana lost an amount of US$190 million granted it from the Millennium Challenge Corporation (MCC), following the termination of the concession agreement between Electricity Company of Ghana (ECG) and private operator Power Distribution Services Ghana Ltd (PDS).

A statement from the US Embassy said the United States of America based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid, and therefore the termination was unwarranted.

“As such, MCC has confirmed that the $190 million funds granted to Ghana on the March 1 transfer to the 20-year concession from ECG to PDS are no longer available,” the statement from the US Embassy in Ghana said.