US approves $498m second MCC Compact for ECG

The Millennium Challenge Corporation (MCC) has signed the second Compact with Government for the release of $498 million to strengthen power distribution in Ghana.

The completion of the deal Thursday comes after a one-year delay. The delay was due to Ghana’s inability to satisfy all the requisite conditionalities demanded by the United States-administered MCC.

The five-year Ghana Power Compact seeks to create a financially viable power sector that will meet the current and future needs of households and businesses—and ultimately help fight poverty across the country.

The Ghana Power Compact was signed in August 2014 but a 2015 date set for the disbursement of the funds was missed. Two other dates in 2016 – June and September – were also missed.

With the soon-to-be-released $498 million, it brings total support to Ghana under the Power Compact to $1.4 billion.

CEO of the MCC, Dana Hyde, said on Thursday, October 27 at a short ceremony to mark the signing of the second Compact that the funds will strengthen operations of the Electricity Company of Ghana (ECG) and make it more efficient.

The second Compact is coming at a time when workers of the ECG have been agitating against plans to inject funds into the company.

The workers fear they will lose their jobs when the power distribution company is restructured, fears government have been at pains to dispel.

Story by Ghana | Myjoyonline.com | GN