Former President John Dramani Mahama has expressed regret over the termination of Ghana’s Millennium Challenge Compact by the United States.
Mr Mahama lamented the decision, stressing that his administration had made great efforts to secure the agreement.
The National Democratic Congress (NDC) flag bearer said the closure was disappointing given that great foundations had been laid to ensure its realization.
The Millennium Challenge Corporation (MCC) confirmed the closure and told Joy News there are no immediate plans to resume cooperation with Ghana. The compact was completely closed.
In March 2019, Ghana was poised to receive significant funding amounting to approximately $190 million, aimed at strengthening the long-term sustainability of infrastructure investments and promoting financial recovery in the energy sector. This financing was part of the second tranche of the MCC Power Compact.
However, the disbursement of funds was halted due to complications arising from the failure of a 20-year concession agreement over Ghana’s Power Distribution Service (PDS).
The agreement was for PDS to take over the operation and management of the assets and staff of the Electricity Company of Ghana (ECG).
The US government suspended the transfer of funds, citing the central role of private sector participation in MCC’s Ghana Power Compact.
In response to these developments, Mr Mahama criticized the Akufo-Addo government on Facebook on Friday, May 10th. He blamed the collapse of the agreement on allegations of corruption within the current government.
Mr Mahama has promised that any future government under his leadership after the 2024 elections will prioritize accountability.
He vowed to conduct a thorough investigation into the PDS scandal and hold those responsible accountable for their actions.
He also pledged to take steps to increase the efficiency of the private sector in the electricity distribution system, focusing on areas such as meter reading, revenue management and outage response.
“The $190 million we negotiated for private participation in electricity supply under the US Millennium Compact has been lost to Nana Addo and Bawumia’s corrupt ‘Yenkendi’ and nepotistic governance practices. I am disappointed to know that.”
“This is unacceptable and we as a people deserve better.”
“Thanks to your votes and support in this year’s elections, as we prepare to take office in January 2025, we will continue to improve private sector efficiency in the electricity supply system, including meters and revenue management. I would like to assure you that I will work diligently to resolve the issue.”
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