The Millennium Challenge Corporation (MCC) has initiated its second Compact with Ghana, focusing on transforming the country's power sector. The program, which will last five years, involves an investment of $498 million from MCC and an additional $37 million from the Government of Ghana, totaling $535 million. This initiative aims to create a financially and commercially viable power sector in Ghana.
Ambassador Gene Cretz emphasized the importance of this partnership during a seminar at the Accra World Trade Center. He stated, "This is a good sign that the second Millennium Challenge Corporation Compact will strengthen the partnership between Ghana and the U.S." The Compact seeks to improve infrastructure, management, oversight, and energy efficiency in Ghana's power sector.
The collaboration between the United States and Ghana is highlighted by technical assistance and financial support from the U.S., while Ghanaians will manage and run the program. Engineer Sarfo, CEO of Ghana’s Millennium Development Authority (MiDA), will oversee this process.
Ambassador Cretz also noted that this support is part of a broader effort under President Obama's Power Africa initiative. He mentioned that projects like CenPower generation project near Tema and Ghana’s First Electricity from Domestic Gas are examples of successful collaborations resulting from this initiative.
He further stressed private investment as crucial for a sustainable power sector in Ghana. "Already many great American companies are moving forward on key investments in Ghana’s power sector," he said. Companies such as General Electric, Endeavor, and Excelerate are involved in negotiations for significant projects like the Ghana 1000 integrated fuel-to-power transaction.
In conclusion, Ambassador Cretz expressed optimism about future partnerships between American and Ghanaian companies as Compact 2 progresses over the next five years.