Promises To Pursue $190 Million Millennium Challenge Compact Devoured By Bawumiah, PDS Corruption
The presidential aspirant of the National Democratic Congress (NDC), John Dramani Mahama, has pledged to pursue the outstanding $190 million, the final portion of the Millennium Challenge Compact earmarked for Ghana but was retracted by the American government.
Mahama affirmed that securing the funding will be a top priority upon his victory in the upcoming December elections and subsequent inauguration as president.
He conveyed his willingness to go to great lengths, even to the extent of humbly requesting the funds, if necessary.
The $190 million constituted part of a $570 million compact designated for investment in the Electricity Company of Ghana (ECG), aimed at enhancing efficiency and reducing technical losses by involving the private sector in the company’s operation.
However, the intended benefits were not realized following political changes in 2017, with alleged interference from relatives of President Akufo-Addo. Additionally, alterations in insurance guarantees, attributed to Vice President Dr. Mahamudu Bawumia, contributed to the contract’s stagnation.
Speaking at the Energy Sector Forum on Friday, September 13, Mahama disclosed his discussions with American Ambassador Virginia E. Palmer to facilitate engagements with U.S. authorities to reinstate the crucial funding.
Highlighting the urgency for the funds to bolster Ghana’s energy sector, Mahama emphasized the vital role of the $190 million in enhancing operational efficiency and reducing technical losses within the sector.
Mahama recounted his administration’s achievements in the energy sector during his tenure and that of the late Prof. Atta Mills.
He referenced significant projects such as the Atuabo Gas Processing Plant, refurbishment of the Tema Oil Refinery (TOR), and the introduction of three FPSOs (Kwame Nkrumah, JA Kufuor, and Atta Mills).
Despite these accomplishments, Mahama lamented the current administration’s mismanagement and corruption, citing detrimental incidents like the Ameri Innovation Agreement and the PDS deals.
The evident decline in the energy sector, particularly the substantial losses incurred by ECG, indicated a pressing need for intervention.
Mahama outlined plans to revitalize the energy sector, promising decisive actions against individuals responsible for detrimental impacts and financial losses.
He assured that his government would conduct assessments of TOR before engaging strategic private sector investors, undertake operational efficiency reviews of power utilities, and implement reforms to deliver reliable and affordable services in line with the 24-hour economy initiative.
Mahama also pledged to instill transparency in the management of the Energy Sector Levy (ESLA), prioritize payments for power consumed by government agencies, and revitalize Ghana’s standing as a reliable power distributor in West Africa.
In addressing concerns of opacity in the oil sector, Mahama proposed measures to enhance credibility, transparency in oil block allocation processes, and diversification of gas utilization for broader industrialization and job creation.
Under Mahama’s leadership, the energy sector is envisioned to shift away from nepotism and hostility towards investors, towards collaboration with stakeholders to realize a prosperous Ghana.
The event, attended by key NDC figures including Prof. Jane Naana Opoku Agyemang, highlighted Mahama’s commitment to revitalizing Ghana’s energy sector.