Government is to receive a 498.2 million Dollar grant under the Millennium Challenge Compact 2.
The grant is to support Ghana to transform the power sector to meet the power needs of industries and household across the country.
Ghana has been battling with power challenges for some time now – a situation which has compelled businesses and other industries to halt operations.
The compact which has six major projects is however expected to stimulate private investments in power generation and supply over the next five years.
During a ceremony to celebrate the success of Millennium Compact 1 and launch of Compact 2, the Minister of State responsible for Development Authorities, Akwasi Oppong Fosu outlined how the benefits of the compact.
“Compact Two takes a system wide approach with six projects across three areas. Namely distribution, generation, transmission and access to energy. The compact also supports Ghana’s efforts to mitigate climate change by funding major energy efficiency initiatives and improving the investment climate for renewable energy,” he explained.
He said the compact will require a “strong commitment from government to implement reforms needed to transform the power sector and put it on a path to ensure sustainability and ultimately creating an investment climate that will attract private investment”.
The Minister further revealed that government has also pledged to invest at least 37.4 million of the National Funds in the Compact “which is expected to categorise approximately 4 billion in new private investment and activity in the coming years.”
Former President John Agyekum Kufuor who initiated the first Compact indicated that the continuity of the project is a sign of good governance. “I believe the success that has marked Compact 1 will continue into the execution of Compact 1 will continue into the execution of Compact 2.”
Credit: citifmonline