US welcomes renegotiation of MCA compact II

02 May 2017

US welcomes renegotiation of MCA compact II

The United States of America (USA) has no objection to the renegotiation of the Millennium Challenge Account Compact II once the intended review seeks to enhance the operations Electricity Company of Ghana (ECG), Robert Porter Jackson, US Ambassador to Ghana, has stated.

“Under the current MCA Compact II, Ghanaian companies will be required to have at least 20% of equity for the running of ECG, if it goes up to 51%, we have no objection to that; it wouldn’t be a problem. It is up to the parties involved to agree on what percentage of participation it should be, but it could not be less that 20%,” he said.

Mr. Jackson was answering questions from journalists in Sunyani after he paid a working visit to the Brong Ahafo Regional Minister, Kwaku Asoma Cheremeh as part of his three-day tour of the region. He emphasized that the compact remains greater; and after full implementation of the Compact, the ECG will be a better actor in the energy industry.

The US Ambassador’s comment comes on the heel of government’s announcement of reaching an agreement with the Millennium Challenge Corporation (MCC) to review the Compact which encompasses the giving out of ECG on concession.

The proposed review of the agreement with MCC seeks to push for the involvement of more local companies in the ECG concession.

The Public Utility Workers Union (PUWU) has been the lead campaigner, advocating the review of Ghana’s second Compact with the MCC.

Ghana has signed a$498.2 million Compact II agreement with the MCC. The Ghana Power Compact is expected to provide the country with a financial backbone to improve the performance of Ghana’s power sector to unlock the country’s economic potential, create jobs and reduce poverty.

Mr. Jackson also recounted some interventions by the US government in other sector of the economy. He mentioned an investment of $38 million assistance into agriculture, particularly in the cultivation of cocoa, cashew, maize rice and soyabeans. “Through the USAID, we are making a tremendous contribution to the development of Agriculture in areas like provision of improved seeds to increase yields and improve incomes. We are also committed to value addition and marketing of produce.”

In the health sector, he said US government invests around $70 million annually in improving health care delivery in the country.

The financial support is channeled into the construction of CHP Compounds; assist mother and child care; training of nurses and midwives; National Health Insurance Scheme; anti-malaria and HIV/AIDS campaigns, he explained.

Source: Business and Financial Times