Ghana Reaches Last Stage Of MCC Compact

Ghana has reached the last stage of preparation for the second Millennium Challenge Corporation (MCC) funded compact programme. Over the last two years, Ghana’s compact development core team and their MCC counterparts have engaged in series of consultations, discussions and workshops to finalize the projects proposed under the compact. The compact has six projects, which include Electricity Company of Ghana Financial and Operational Turnaround project, Access to electricity project and regulatory strengthening and capacity building project. The rest are power generation sector improvement project, demand side management energy efficiency project, and NEDCo Financial and operational turnaround project. A statement made available to the presidential press corps by the Millennium Development Authority at Peduase Lodge where the leadership of the Ghana team met President John Dramani Mahama said from June 9-13, this year, the government of Ghana and the MCC would enter into negotiations on the compact in Washington DC. Professor Kwesi Botchwey, a former Minister of Finance and Economic Planning, would head the Ghana team. The final compact is expected to be signed pending MCC board approval, congressional no-objection and Ghana parliamentary approval in August this year. The total compact fund from MCC is $498.20 made up of two tranches. Tranche one is about $ 308.2 million while tranche two is $ 190 million. However, disbursement of tranche two would be dependent on performance. The statement said a new feature of the compact is Ghana’s contribution of 7.5 per cent of the compact fund, which translates into $37.37 million bringing the total figure to $ 537.57 million. The goal of the compact is reduce poverty through private sector-led economic growth.