Ghana is preparing to reopen negotiations with the United States government for a potential reinstatement of $190 million from the Millennium Challenge Corporation (MCC), originally allocated to overhaul the electricity sector. During his tenure as Vice President under the late President John Evans Atta Mills, President Mahama signed the MCC with the goal of transforming Ghana into Africa’s most efficient electricity producer and a major hub for electricity exports.
“Unfortunately, democracy has its dividends, but sometimes it can be a curse,” Mahama remarked. “We left the government and a new administration took over the Millennium Challenge Compact. The final segment, focused on improving efficiency in distribution, billing, and metering, was left incomplete.”
The President emphasized that without addressing issues at the Electricity Company of Ghana, the entire power value chain would continue to suffer. “Going ahead with privatizing the last point of distribution of electricity to introduce private sector efficiency is something we want to pursue again,” he said.
Mahama noted that he had already initiated discussions with the MCC about reinstating the $190 million funding. “They said the door is not closed,” he revealed. He added that if reinstatement doesn’t materialize, he would seek World Bank support to complete the remaining infrastructure and reduce losses tied to independent power producers (IPPs).
In the meantime, Mahama assured that his administration would work to restore transparency within the energy system and reinstate the cash waterfall mechanism to stabilize operations until comprehensive reforms are enacted. He shared these plans during a courtesy visit from Mr. Ousmane Diagana, World Bank Vice President for West and Central Africa, in Accra.
Mr. Diagana affirmed the World Bank’s commitment to supporting Ghana’s socioeconomic development. He attended President Mahama’s inauguration at Independence Square on January 7. The President reiterated the urgent need to overhaul energy sector systems to reduce debt and enhance efficiency.
