President John Dramani Mahama has described as timely, the signing of the second compact of the Millennium Challenge Corporation.
The signing will see the release of $498 million to Ghana which government says will be channeled into the country’s power sector.
The $498.2 million will support the transformation of Ghana’s electricity sector and stimulate private investment.
The five-year compact is designed to create a self-sustaining energy sector in Ghana by reforming laws and regulations needed to transform the country’s power sector.
The President noted that the signing has come at a time when Ghana’s energy sector is facing crippling challenges.
Speaking after the signing ceremony, President Mahama promised to judiciously use the money for its intended purpose.
He disclosed that Ghana is considering how to attract investments to invest in infrastructure for the “generation transmission and distribution of electricity” throughout Ghana.
This, he said will ensure the sustainability and efficient development of the country’s energy sector.
The President mentioned that it is imperative for Ghana to achieve an “integrated resource and resiliency planning among the generation transmission and distribution sectors.”
He promised that Ghana will successfully undertake the transition to a wholesale electricity market for to reduce distribution and commercial loss reduction.
This is also to promote energy efficiency and demand side management to support the expansion of renewable energy projects.
President Mahama added that other pressing needs which must addressed in Ghana’s energy sector “is to improve the credit worthiness of the Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCO).”
