As the second compact of the Millennium Challenge Corporation (MCC) officially ends September 6, 2021, Ghana is expected not to qualify for the third compact of the programme.
Ghana’s inability to qualify for the third compact of the power programme according to Chief Executive Officer (CEO) of the Corporation, Sean Cairncross, in an email to norvanreports, is due to how Government handled the PDS scandal as well as its plans to privatize the Electricity Company of Ghana (ECG).
Mr Cairncross described as disappointing how Government handled the issue as it was forced to withdraw the additional $190 million supposed to be advanced to Ghana to complete the compact programme.
Speaking further, he noted that the MCC Board is yet to select countries eligible for the third compact and that Ghana’s privatization plans of its State power distribution company is likely to affect its ability to qualify for the third compact.
According to him, the MCC for now is focused on completing the last stage of the second compact which include key investments in Accra and working to improve infrastructure of Ghana’s southern distribution network and increase reliability and access to key markets in the advanced energy efficiency programme.
“Despite our disagreement on how Ghana handled issues with PDS, we are however satisfied with how Ghana has managed the second compact programme so far and look forward to working with Ghana once again in the future,” he said in the email to norvanreports.
Government on August 5, 2014 signed the second Millennium Challenge Corporation Compact with the US Government. The Compact sought to invest up to $498.2 million to support the transformation of Ghana’s electricity sector and improve management of Ghana’s entire power system, providing a more robust framework for private investment as well as a more competitive process for the procurement of power from independent producers.
It also aimed at addressing challenges in distribution, generation and access to energy in Ghana.