The Millennium Challenge Corporation (MCC) and the Government of Ghana on Tuesday signed an agreement for the award of $8 million for feasibility studies into the second compact of the Millennium Challenge Account (MCA).
Ghana received $547 million in the first compact and requires about $745 million from the second to undertake and complete crucial projects in the energy sector of the economy.
Mr Armah Kofi Buah, Minister of Energy signed for Ghana, and Mr Jonathan Bloom of the MCC appended for his outfit.
Vice President Kwesi Bekoe Amissah-Arthur, who witnessed the signing ceremony in Accra, said following Ghana’s selection to develop a second compact, a number of activities have taken place between Ghana and United States.
He said the critical milestone so far has been the development of constraints analysis which identified the supply of power as a binding constraint to private sector investment.
The Vice President said Government is in the process of addressing the electricity bill arrears it owes the Electricity Company of Ghana and Ghana Grid Company.
He said Government has at the end of June paid GH¢207million out of the total arrears owed to the utility companies.
Vice President Amissah-Arthur said Government is pursuing a kind of payment system for the Ministries, Departments and Agencies (MDAs) to avoid the accumulation of utility bills and this included the installation of prepaid metres to these bodies.
Mr Bloom said MCC shall continue to partner the Government as it supports the private sector, which is the engine of growth and urged the team to improve delivery in the utility sector.
In an interview with Mr Buah, he said Government is addressing the issue of collection of revenue.