Ghana receives $190m after meeting Compact milestone

Ghana is to receive the second allocation of compact funds from the Millennium Challenge Corporation (MCC) in the amount of $190 million after meeting all the required conditions to access the funds.

MCC submitted a letter acknowledging Ghana’s achievement of this milestone to President Nana Addo Dankwa Akufo-Addo.

Upon Entry-Into-Force of the Ghana Power Compact on September 6, 2016, MCC granted access to the first allocation of the compact funds worth $308.2 million.

MCC’s investment in the Ghana Power Compact amounted to $498.2.

This came to light when a delegation led by Professor Yaa Ntiamoa-Baidu, the Board Chairperson of MiDA, and Christopher Lamora, Charge d’Affairs and Acting. United States Ambassador to Ghana, presented the letter to Vice President Mahamudu Bawumia, who received it on behalf of the President.

“Today marks a significant milestone in the implementation of the Power Compact Programme. With these funds, MiDA together with its implementing entities will be able to carry out the planned investment and reformed activities aimed at strengthening our country’s power distribution sector,” Prof Ntiamoa-Baidu said.

The Acting CEO of the MCC, Brock Bierman, said meeting that important milestone was a testament of the commitment of the Ghanaian government to reform its power sector in an effort to bring critical services to its people.

Mr Bierman said with only three years remaining in the MCC Ghana Power Compact, there was the need to continue working together till the concession was completed, while private-sector investment and expertise was injected to transform the viability of the Ghanaian power sector.

Vice President Bawumia acknowledged the notification and thanked the US Government and the MCC for their partnership through the Ghana Power Compact; a manifestation of the strong cooperation that Ghana has with the US.

“Today is a great day and we are entitled to celebrate our achievement.

“However, we have a significant number of project activities to be carried out in order to meet all milestones.

I therefore urge all stakeholders to continue to collaborate and maintain the alacrity they have demonstrated so far,” the Vice President said.

He reiterated government’s commitment to ensure that the Compact delivered its goal in order to reduce poverty through economic growth and positively transform the power distribution sector.

Source: GNA

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