MCC Reportedly Extends Ghana Power Compact 2 To June 2022

The Millennium Challenge Corporation has reportedly extended the implementation of the Ghana Power Compact 2.

Energynewsafrica.com reports that the extension has become necessary because of hiccups the project implementation suffered as a result of the COVID-19 pandemic.

MCC Country Director, Steve Marma, is reported as making the revelation during the inauguration of the Meter Management System established by the Millennium Development Authority (MiDA).

According to him, it is not the policy of the MCC to extend the compact period but had to do so because it is necessary to do so, reports energynewsafrica.com.

“With our partners at the Millennium Development Authority [MiDA], and in partnership with entities like the Electricity Company of Ghana [ECG], the Ghana Power Compact is strengthening the southern power transmission and distribution systems to bring more reliable electricity to Ghana, its citizens and businesses,” Mr. Marma explains.

This phase of the Power Compact is the first under an MCC grant funding to Ghana’s energy sector. The amount involved is US$308million and is targeted at improving the infrastructure of Ghana’s power distribution sector.

However, the US$308million was part of an original US$500million that the US was granting to Ghana. 

The grant giver in October 2019, canceled an extra US$190million that it was going to release because a process to assemble a private consortium to handle the implementation of the project had been saddled with government corruption in the infamous PDS deal.

Actors and amigos of the Akufo-Addo government led by Finance Minister Ken Ofori-Atta had quickly put together a consortium called Power Distribution Services (PDS), and had attempted to use it to take over the Ghc20billion assets of the Electricity Company of Ghana (ECG).

The move would have put Akufo-Addo’s family and friends in a position to use ECG’s tolls as collateral to takeover the ECG. But it failed when a scandal broke, causing the US to hold back US$190million extra funding for the MCC program.

The US did not however withdraw the first tranche of funding, worth $308m, which is supporting infrastructure upgrades to the southern network.

Speaking about the new infrastructure, Mr. Marma is quoted as saying; “This new IT investment will make things a little better for the ordinary Ghanaian who needs electricity in their everyday activities”, he explained.

“When you finish work and go to pay for your electricity, the pre-paid credit system shouldn’t be down. It now has a backup system to provide redundancy. Instead of rushing to the ECG payment centre in your region, once fully rolled out, MMS allows payments across geographic boundaries, giving customers more flexibility at where they pay”.

The Ghana Power Compact II, which was started in September 2016, was originally scheduled to end on September 6, 2021.

The Ghana Power Compact II is focused on the ECG’s Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, Access Project and Energy Efficiency as well as Demand-side Management Project.

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