The government is in discussions with the MCC to obtain longer timelines and possibly revise the terms of the compact that was initially signed in 2014.
Ghana is ready to renegotiate with the United States for the reinstatement of $190 million under the Millennium Challenge Corporation (MCC) to enhance its electricity sector. President John Dramani Mahama disclosed this during a meeting with Ousmane Diagana, the World Bank Vice President for West and Central Africa, following Mahama’s inauguration in Accra on January 7.
President Mahama emphasized the need for reforms in Ghana’s energy systems to reduce debts and boost efficiency. Reflecting on his previous role in signing the MCC, he noted the compact’s intent to make Ghana a hub for electricity exports. However, the initiative faced setbacks under subsequent administrations.
He reiterated the importance of privatizing electricity distribution to ensure private sector efficiency. Discussions with the MCC indicated the potential for reopening talks on the funding, while the World Bank could also play a pivotal role in supporting these reforms.
Mahama highlighted plans to restore transparency and stabilize cash flow in the electricity sector. Addressing inefficiencies, particularly with independent power producers, remains a key priority for his administration.
World Bank Vice President Ousmane Diagana assured Ghana of the Bank’s commitment to support the country’s socioeconomic development goals, including its energy reforms.