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Ghana is poised to renegotiate with the United States government for the reinstatement of $190 million under the Millennium Challenge Corporation (MCC) Compact, initially allocated to enhance the country’s electricity sector.
President John Dramani Mahama disclosed this intention during a meeting with Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra. The meeting coincided with the President’s inauguration on January 7 at Independence Square.
President Mahama stressed the critical need for reforms in Ghana’s energy sector, citing debt reduction and efficiency enhancement as key priorities.
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He reflected on his time as Vice President under the late President John Evans Atta Mills, when the original MCC agreement was signed, positioning Ghana to lead in electricity production and export in Africa.
“Unfortunately, the change in government disrupted the Millennium Challenge Compact, particularly the final phase aimed at improving distribution, billing, and metering efficiency. The PDS debacle is history, but we must revisit privatising electricity distribution to introduce private-sector efficiency,” Mahama stated.
Despite setbacks, President Mahama revealed that preliminary discussions with the MCC had left open the possibility of reinstating the $190 million.
He also appealed to the World Bank to support Ghana’s electricity distribution reforms should the MCC funds remain inaccessible.
“In the meantime, we are committed to restoring transparency, stabilising the system through the cash waterfall mechanism, and addressing inefficiencies within the power value chain,” Mahama added.
Mr. Ousmane Diagana commended Ghana’s efforts to improve its energy infrastructure and reaffirmed the World Bank’s commitment to supporting the nation’s socioeconomic development agenda.
