Ghanaâ€™s power sector has received a major boost after the country got the nod to access a US$498 million grant under the Ghana Power Compact â€“ Compact II.
â€œI 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,â€ the CEO of the Millennium Development Authority (MiDA) Owura Sarfo said in a statement Wednesday.
The treaty was signed August 2014 between Ghana and the US, represented by the Millennium Challenge Corporation and the fund will help improve the performance of Ghanaâ€™s power sector, unlock the countryâ€™s economic potential, create jobs and reduce poverty.
According to the statement, the Ghana government â€œnow has five years to implement the Compact Programme.â€
Six projects are scheduled to be implemented under the Power Compact - 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.
â€œMiDA is committed to effectively implementing the Compact programme so as to help solve the power challenges that negatively impact on our businesses, our educational institutions, the economy and our lives,â€ Sarfo noted.
â€œWe 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,â€ he added.