Ghana is pushing to renegotiate a $190 million Millennium Challenge Corporation (MCC) deal with the U.S., aimed at improving electricity infrastructure, after delays in project implementation.
What’s happening
- The government is engaging the MCC to secure extended timelines and potentially adjust the terms of the compact, originally signed in 2014.
- The funds are part of efforts to improve the reliability of electricity in Ghana, including modernizing distribution systems and reducing technical losses.
The context
- The MCC compact faced delays due to challenges in meeting key preconditions and controversies over the privatization of the Electricity Company of Ghana (ECG).
- The agreement expired in 2021, leaving $190 million unused.
Why it matters
- Ghana’s electricity sector is under pressure, with aging infrastructure, high losses, and unreliable service hampering economic growth.
- Renegotiating the deal could bring critical funding to address these issues and improve power delivery for businesses and households.
What they’re saying
“We are committed to ensuring that this renegotiation benefits Ghanaians and improves our energy sector,” a government spokesperson said.
What’s next
The outcome of the renegotiation will determine whether Ghana can access the remaining funds and meet the goals of the compact, which are vital to boosting energy sector performance.
Source: Ghana News Agency
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