The US government has assured Ghana that funds for the second Millennium Challenge Corporation (MCC) compact will be released immediately after all negotiations are done.
A report on Ghana’s quest for the second MCC compact, a constraints analysis, a concept note and a concept paper have all been completed and submitted to the US corporation as at March 2013.
Speaking from Washington DC through a teleconference last week, Gayle Smith, Special Assistant to the US President and Senior Director, National Security Council, said agreements under MCC compacts are negotiated carefully in terms of the substance as well as constraints analysis before implementation.
“So the money will start to flow as soon as those negotiations are completed,” Ms Smith answered in response to a question on the update of Ghana’s chance to get the MCC funds.
Ghana successfully completed a five-year $547 million compact with the MCC on February 15, 2012.
The second compact is expected to focus on the energy sector and the MCC will use part of the US’ $7 billion Power Africa initiative launched by President Barck Obama in South Africa to disburse funds for Ghana.
“Ghana will certainly be a part of Power Africa both through the MCC but through other means, as it’s been our view that there are not only electricity needs but the conditions are right to really expand on electricity access,” Ms Gayle told the press July 10, 2013.
The MCC, through the ‘Power Africa’ initiative, have made a commitment of $1 billion in its compact funding towards the energy sector in Africa.
By Ekow Quandzie