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back7th September, 2016

Ghana Power Compact Enters into Force


MIDA
Hon. Seth Terkper, Minister of Finance(Ghana) in a handshake with Dana J. Hyde, CEO of Millennium Challenge Corporation at the Compact Signing. Looking on (L) President John Mahama and Sec. John Kerry

Compact to implement projects to address the root causes of power challenges in Ghana

Accra, September 7, 2016 – The Ghana Power Compact, also referred to as Compact II, has now Entered into Force. This means that the treaty signed on August 5, 2014 between the Republic of Ghana and the United States of America, represented by the Millennium Challenge Corporation (MCC) has become effective and Ghana now has access to the Program funds.  

Ing Owura Sarfo, Chief Executive Officer of MiDA, announced the Compact commencement. “I am happy to advise that yesterday we met all the conditions precedent to Entry into Force of the Compact and submitted all the required documentation in that respect” . The MCC has confirmed that the Government of Ghana has met all requirements and the Compact entered into force as of Tuesday September 6, 2016,” he said.

This significant milestone was achieved as a result of the collective efforts of several stakeholders. The Government of Ghana now has five years to implement the Compact Program.

Under the Power Compact, six projects namely ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, Access Project, Power Generation Sector Improvement Project and Energy Efficiency and Demand Side Management Project, will be implemented to address the the root causes of the unavailability and unreliability of power in Ghana.

“MiDA is committed to effectively implementing the Compact program so as to help solve the power challenges that negatively impact on our businesses, our educational instituions, the economy and our lives,” Ing Sarfo said. “We believe that the six projects have been carefully designed to address the root causes of the unavailable and unreliable power in our country which is inextricably linked to the economic development of Ghana and poverty reduction”, he added.



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