Ghana spends 84% of $547m MCA money as end of compact nears

Ghana has has so far spent 84% of the $547 million Millennium Challenge Account (MCA) investment from the US government as of September 30, 2011, according to the latest Quarterly Status Report on the country as the first compact ends February 15, 2012.

In August 2006, the US-run Millennium Challenge Corporation (MCC) signed a five-year, $547 million compact with Ghana. The monies are being invested into agric, transportation and rural development aimed at reducing poverty.

The compact in Ghana entered into force (EIF) in February 2007, formally initiating the five-year timeline for project implementation.

According to the report, out of the total grant value of $547,009,000, the total amount expended is $460,052,883 representing 84% as of the end of September 2011.

The expenditures are the sum of cash outlays and quarterly accruals for work completed but not yet paid or invoiced.

A total amount committed so far is $537,296,629 which represents 98% of the entire grant, the report indicated.

Ghana has been reselected for the second compact. The country is likely to get between $350 million and $400 million as the second tranche of the MCC, according to the US Foreign Assistance Dashboard updated late December 2, 2011.

The Foreign Assistance Dashboard provides a view of US government foreign assistance funds and enables users to examine, research, and track aid investments in a standard and easy-to-understand format.

Late October 2011, when Mr Patrick Fine, Vice President of the Millennium Challenge Corporation, paid a visit to Ghana, he told reporters that Ghana’s power sector will receive a higher part of the funds from the second compact if a final decision is taken by the MCC’s Board of Directors on the country’s eligibility for the funds.

By Ekow Quandzie