President John Dramani Mahama has announced Ghana’s readiness to renegotiate with the United States Government for the possible reinstatement of $190 million under the Millennium Challenge Corporation (MCC) Compact, initially allocated to improve the country’s electricity sector.
President Mahama disclosed this during a meeting with Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra. Mr. Diagana was in the country to witness the President’s inauguration on January 7 at Independence Square.
The President emphasized the importance of reforming Ghana’s energy sector to reduce debts and enhance efficiency.
Reflecting on his time as Vice President under the late President John Evans Atta Mills, Mahama recalled signing the MCC agreement to position Ghana as a leading electricity producer and exporter in Africa.
“Unfortunately, the change in government disrupted the Millennium Challenge Compact, particularly the final phase aimed at improving distribution, billing, and metering efficiency. The PDS debacle is history, but we must revisit privatizing electricity distribution to introduce private-sector efficiency,” he said.
President Mahama revealed that discussions with the MCC had left the door open for reinstating the $190 million fund.
He also called on the World Bank to consider supporting Ghana to complete reforms in the electricity distribution sector if MCC funding cannot be reinstated.
“In the meantime, we are committed to restoring transparency, stabilizing the system through the cash waterfall mechanism, and addressing inefficiencies within the power value chain,” he added.
Mr. Ousmane Diagana reaffirmed the World Bank’s commitment to supporting Ghana’s socioeconomic development agenda, expressing optimism about the country’s efforts to enhance its energy infrastructure.
READ ALSO: