Ghana is set to reopen negotiations with the United States government for the possible reinstatement of $190 million under the Millennium Challenge Corporation (MCC) Compact, previously allocated for the country's energy sector.President John Dramani Mahama revealed this during a courtesy call by Mr. Ousmane Diagana, the World Bank Vice President for West and Central Africa, in Accra. Mr.

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Diagana was in Ghana to attend the presidential inauguration held on January 7 at Independence Square.President Mahama emphasized the importance of reforming Ghana's energy sector to improve efficiency and reduce debts. He highlighted the need to revisit the MCC agreement to achieve these goals.

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He recalled his role during his tenure as Vice President under the late President Professor John Evans Atta Mills, when he signed the MCC on behalf of the President, with the aim of transforming Ghana into the most efficient electricity producer in Africa and a major hub for electricity exports.“Unfortunately, democracy has its dividends, but it also sometimes can be a curse.

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We left the government, and a new government took over the Millennium Challenge Compact. The last segment, which was providing efficiency in distribution, billing, metering, and all that, was taken over,” President Mahama said.He further referenced the Power Distribution Services (PDS) debacle, adding, “PDS is history now.

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But we want to look at that again because if we do not fix the Electricity Company of Ghana, we will continue to have a major problem with our whole power value chain.”President Mahama reaffirmed his administration's commitment to improving the sector through private sector participation.

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“Going ahead with privatizing the last point of distribution of electricity to bring in private sector efficiency is something that we want to take up again,” he stated.

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The President disclosed that discussions with US officials and the Millennium Challenge Corporation had been positive, stating, “I spoke to the Americans and met the Millennium Challenge Corporation, and we asked if they could reinstate the $190 million that they had devoted to that aspect of it. And they said the door is not closed.”He stressed the importance of following up on the discussions, saying, “We need to pursue that discussion.

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Or, if we don’t have access to the $190 million, if the World Bank can support us to be able to finish that aspect of it, we can reduce the losses where it has to do with the independent power producers (IPPs).”In the interim, President Mahama noted his administration's commitment to restoring transparency and stabilizing the energy sector through measures such as the cash waterfall mechanism.Mr.

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Ousmane Diagana reaffirmed the World Bank's continued support for Ghana's socioeconomic development agenda, emphasizing the importance of collaboration for the country's progress.

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