Ghana to renegotiate with US for MCC $190m for electrical energy
Ghana is able to renegotiate with the United States (US) authorities for attainable reinstatement of $190 million underneath the Millennium Challenge Corporation (MCC), that had been dedicated to the electrical energy sector.
President John Dramani Mahama disclosed this throughout a courtesy name on him by Mr Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra.
Mr Diagana was in Accra to witness the inauguration of President Mahama at Independence Square, which came about on January 7.
Mr Mahama reiterated that there was the necessity for his administration to alter the programs within the power sector to make it possible for they pay down the money owed and make it extra environment friendly than it was presently.
He recalled that in his tenure as Vice President underneath the late President Professor John Evans Atta Mills, he on behalf of the President, signed the MCC, which was meant to enhance and make Ghana probably the most environment friendly producer of electrical energy in Africa and grow to be a significant hub for electrical energy exports.
“Unfortunately, democracy has its dividends, but it also sometimes can be a curse. We left government and a new government took over and took over the Millennium Challenge Compact. Next up, the last segment of it, which was providing efficiency in distribution, billing, metering, and all that,” he said.
“And in fact, PDS is historical past now. But we wish to have a look at that once more as a result of if we don’t repair the Electricity Company of Ghana, we’ll proceed to have a significant drawback with our entire energy worth chain.
“And so, going ahead with privatizing the last point of distribution of electricity to bring in private sector efficiency is something that we want to take up again.”
“I spoke to the Americans and met the Millennium Challenge Corporation, and we asked if it was possible for them to reinstate the $190 million that they had devoted to that aspect of it. And they said the door is not closed,” the President stated.
“And so, we need to pursue that discussion. Or, if we don’t have access to the $190 million, if the World Bank can support us to be able to finish that aspect of it, we can reduce the losses where it has to do with the independent power producers (IPPs).”
He stated within the meantime, they’d restore some transparency within the system, restore the money waterfall mechanism to stabilise the scenario till they have been in a position to perform all of the reforms in that sector.
Mr Ousmane Diagana, the World Bank Vice President for West and Central Africa, underscored Bank’s dedication to assist Ghana’s socioeconomic growth agenda.
Source: GNA
