President John Dramani Mahama has revealed that the country was prepared to renegotiate with the United States (US) government for possible reinstatement of $190 million under the Millennium Challenge Corporation (MCC), which had been devoted to the electricity sector.
The president, who was sworn into office two days ago, stated that there was a need for his administration to change the systems in the energy sector to make sure that they pay down the debts and make it more efficient than it is currently.
He said this during a courtesy call on him by Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra.
He recalled that while serving as Vice President under the late President Professor John Evans Atta Mills, he signed the MCC on the President’s behalf.
The goal of the agreement was to make Ghana the most efficient electricity producer in Africa and a major export hub.
“Unfortunately, democracy has its dividends, but it also sometimes can be a curse. We left the government and a new government took over and took over the Millennium Challenge Compact. Next up, the last segment of it, which was providing efficiency in distribution, billing, metering, and all that,” he stated.
“And of course, PDS is history now. But we want to look at that again because if we do not fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain.
“And so, going ahead with privatizing the last point of distribution of electricity to bring in private sector efficiency is something that we want to take up again.”
“I spoke to the Americans and met the Millennium Challenge Corporation, and we asked if they could reinstate the $190 million that they had devoted to that aspect of it. And they said the door is not closed,” the President said.
“And so, we need to pursue that discussion. Or, if we don’t have access to the $190 million if the World Bank can support us to be able to finish that aspect of it, we can reduce the losses where it has to do with the independent power producers (IPPs).”
In order to stabilise the situation until they could implement all of the reforms in that sector, the President further promised that his government would restore the cash waterfall mechanism and some transparency to the system.
World Bank Vice President for West and Central Africa Mr. Ousmane Diagana, meanwhile, reaffirmed the Bank’s dedication to advancing Ghana’s socioeconomic development agenda.
By: Rainbowradioonline.com/Ghana
