Energy Renegotiation: US-Ghana to renegotiate MCA compact II

The US says it is opened for renegotiation of the Millennium Challenge Account Compact II provided it will improve the services of the ECG

Robert Porter Jackson, US Ambassador to Ghana says his outfit is ready for renegotiating the Millennium Challenge Account Compact II if the review will enhance the operations Electricity Company of Ghana (ECG).

“Under the current MCA Compact II, Ghanaian companies will be required to have at least 20% of equity for the running of ECG, if it goes up to 51%, we have no objection to that; it would not be a problem. It is up to the parties involved to agree on what percentage of participation it should be, but it could not be less that 20%”.

READ ALSO: Government reviewing ECG concession to ensure job security - Akufo-Addo

He made these statements during an encounter with the media in Sunyani.

The US Ambassador’s comment comes on the heel of government’s announcement of reaching an agreement with the Millennium Challenge Corporation (MCC) to review the Compact which encompasses the giving out of ECG on concession.

Brong Ahafo Regional Minister, Kwaku Asoma Cheremeh as part of his three-day tour of the region expressed optimism of a service enhancement once the ECG reviews are made.

The proposed review of the agreement with MCC seeks to push for the involvement of more local companies in the ECG concession.

READ ALSO: PUWU blasts US Ambassador over ECG privatization

The Public Utility Workers Union (PUWU) has been the lead campaigner, advocating the review of Ghana’s second Compact with the MCC.

Ghana has signed a$498.2 million Compact II agreement with the MCC. The Ghana Power Compact is expected to provide the country with a financial backbone to improve the performance of Ghana’s power sector to unlock the country’s economic potential, create jobs and reduce poverty.

 

The US says it is opened for renegotiation of the Millennium Challenge Account Compact II provided it will improve the services of the ECG Read Full Story