A representative of the Millennium Challenge Corporation (MCC) has expressed confidence in Ghana’s ability to meet the conditions for accessing funds under the second compact.
Despite suggestions by the Minority in Parliament that Ghana may not be able to access the second fund from the Millennium Challenge Account, Ms Deidra Fair James, the Country Team Lead at the United States Embassy in Ghana, has expressed optimism that the fund could be accessed.
She explained that the government had shown a commitment to implement the reforms needed to transform the country’s energy sector where majority of the funds under the compact are expected to be invested.
Project take-off
According to Ms James, depending on the government’s ability to put in place the necessary strategies required under the compact for the implementation of the projects, the first tranche of funding would be ready by mid-2015.
“It takes usually about nine to 12 months to constitute a board, start hiring, collect the baseline data, and ensure all the studies are completed so we can start. There is money available to facilitate project preparations.”
On the prime conditions that Ghana is expected to meet before accessing the fund, Ms James said apart from the exchange of letters, the government must be on track to repay arrears owed the ECG and complete consultations for public-private sector arrangements.
“We had a very good preparation with the government, as well as discussions for negotiations and this is what we agreed on. We are here to support the government in ensuring that we move forward,” she said.
Africa power initiative
President Obama, on June 30, 2013, launched a private sector-led initiative aimed at doubling electricity access in Sub-Saharan Africa known as Power Africa.
On August 5, 2014, at the recently ended US-African leaders’ Summit, President Obama announced a renewed commitment to the Power Africa Initiative pledging $300 million per year to expand power supply across the African continent.
Transforming Ghana’s power sector
At a press round table in Accra on Wednesday on the US-Africa leaders’ summit and the Millennium Challenge Corporation-Ghana Compact II, the US Ambassador, Mr Gene Cretz, commended the Ghanaian delegation for their valuable contributions during the three-day summit.
“I would like to highlight that President Mahama and his official delegation played an important role. Although economic issues grabbed the headlines the Ghanaian delegation participated in and made valuable contributions to discussions on a number of global issues including Climate Change, gender-based violence, trafficking of drugs and strengthening governance in Africa.”
Under compact II, up to $498 million would be invested over the next five years to support the transformation of Ghana’s power sector and stimulate private investment.
The government of Ghana also pledged to invest at least $37.4 million.
The compact included an initial investment of up to $149.6 million to put the country’s main distribution company, the electricity Company of Ghana, on the path to sustainability.
It would also help the ECG meet existing and future demands by improving oversight and management and upgrading infrastructure to reduce and improve service.
Despite suggestions by the Minority in Parliament that Ghana may not be able to access the second fund from the Millennium Challenge Account, Ms Deidra Fair James, the Country Team Lead at the United States Embassy in Ghana, has expressed optimism that the fund could be accessed.
She explained that the government had shown a commitment to implement the reforms needed to transform the country’s energy sector where majority of the funds under the compact are expected to be invested.
Project take-off
According to Ms James, depending on the government’s ability to put in place the necessary strategies required under the compact for the implementation of the projects, the first tranche of funding would be ready by mid-2015.
“It takes usually about nine to 12 months to constitute a board, start hiring, collect the baseline data, and ensure all the studies are completed so we can start. There is money available to facilitate project preparations.”
On the prime conditions that Ghana is expected to meet before accessing the fund, Ms James said apart from the exchange of letters, the government must be on track to repay arrears owed the ECG and complete consultations for public-private sector arrangements.
“We had a very good preparation with the government, as well as discussions for negotiations and this is what we agreed on. We are here to support the government in ensuring that we move forward,” she said.
Africa power initiative
President Obama, on June 30, 2013, launched a private sector-led initiative aimed at doubling electricity access in Sub-Saharan Africa known as Power Africa.
On August 5, 2014, at the recently ended US-African leaders’ Summit, President Obama announced a renewed commitment to the Power Africa Initiative pledging $300 million per year to expand power supply across the African continent.
Transforming Ghana’s power sector
At a press round table in Accra on Wednesday on the US-Africa leaders’ summit and the Millennium Challenge Corporation-Ghana Compact II, the US Ambassador, Mr Gene Cretz, commended the Ghanaian delegation for their valuable contributions during the three-day summit.
“I would like to highlight that President Mahama and his official delegation played an important role. Although economic issues grabbed the headlines the Ghanaian delegation participated in and made valuable contributions to discussions on a number of global issues including Climate Change, gender-based violence, trafficking of drugs and strengthening governance in Africa.”
Under compact II, up to $498 million would be invested over the next five years to support the transformation of Ghana’s power sector and stimulate private investment.
The government of Ghana also pledged to invest at least $37.4 million.
The compact included an initial investment of up to $149.6 million to put the country’s main distribution company, the electricity Company of Ghana, on the path to sustainability.
It would also help the ECG meet existing and future demands by improving oversight and management and upgrading infrastructure to reduce and improve service.
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