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Tag: MiDA

  • $190m MCC withdrawal amid PDS scandal could heighten power supply crisis – Energy Analyst

    $190m MCC withdrawal amid PDS scandal could heighten power supply crisis – Energy Analyst

    Energy analyst, Dr. Yusif Sulemana, has labeled the Millennium Challenge Corporation’s (MCC) decision to retract the $190 million compact as “a double whammy.”

    Speaking on TV3’s News Central, Dr. Sulemana emphasized that the withdrawal stemmed from insufficient capital and systemic inefficiencies within the electricity distribution chain.

    He pointed out that despite challenges, the involvement of Independent Power Producers (IPPs) in power generation has injected vitality into the sector.

    “We haven’t done the right thing and if you haven’t done the right thing and you expect something magical to happen, nothing will happen. I see that as a double whammy. This is a time that if you look at what is happening at the moment, is all because of what we couldn’t do in the distribution arm of it. First, we don’t have the capital that is is required and the inherent inefficiency in the system and that’s culminating in what we have today,” he explained.

    “When we have efficient private sector participation in energy sector, two things will happen: number one, they will inject the required capital that is needed to rejuvenate the system. To make the system resilient. Number two, private sector participation will minimize political interference in sector,” he explained.

    Dr. Sulemana advocated for enhanced private sector participation in distribution to improve efficiency and reduce political interference.

    He stressed the importance of selecting partners focused on business benefits rather than parasitic investment.

    Regarding the lost funds, Dr. Sulemana highlighted the need for investments in the current system, particularly in metering infrastructure, to mitigate commercial losses faced by the Electricity Company of Ghana (ECG).

    Meanwhile, Ben Boakye, Executive Director of ACEP, attributed the loss to political manipulations under the Millennium Development Authority (MiDA).

    John Dramani Mahama, flagbearer of the NDC, pledged to investigate the PDS scandal if elected, blaming corrupt governance practices for the loss.

    Background: The PDS concession, part of Millennium Challenge Compact II, was suspended in 2019 due to breaches, leading ECG to regain control of power distribution.

  • President Akufo-Addo eyes third MCC compact

    President Nana Addo Dankwa Akufo-Addo has said that due to the successful implementation and completion of compacts One and Two of the Millennium Challenge Corporation (MCC), he will make a case at the highest level in the United States for a third compact.

    He expressed the hope that the US authorities would sit around the table for a new compact, looking at Ghana’s record in executing the compacts and its status as a truly functioning and stable democracy in the region, among what constituted the requirements to qualify for a compact.

    The President gave the hint when the Chairman and a board member of the Millennium Development Authority (MiDA) presented the final report of the second compact to him at the Jubilee House in Accra last Tuesday.

    The board, which was sworn in in 2017, supervised the execution of the second compact, which ended last Tuesday.

    President Akufo-Addo said Ghana’s commitment to the rule of law remained unshaken and continued to deepen; therefore, the various elements which constituted the requirements for accessing the compact continued to be very present in the country.

    He said Ghana believed that there was every reason for it to get another one, especially with the successful implementation of the two compacts, the first on agriculture and the second in the energy sector.

    “If still the idea of compact is on the table in Washington, we will be interested in the discussion to enable us to embrace it for the industrial development of the country,” he said.

    He described the presentation of the report by the MiDA Board as momentous in terms of the country’s relations with the US.

    He recounted how, during the Kufuor Administration when the compact was initiated by the Bush government in the US, Ghana had informally made an input into its design.

    The President expressed the commendation of the people of Ghana to the US government for the first compact, which was $547 million, and the second, which was over $400 million.

    He also commended members of the board for the vigilance they exhibited in the execution of the work.

    He noted that the country required more energy for its industrialisation drive, particularly when it wanted to venture into bauxite development, which meant that it required a more viable and reliable power sector.

    PDS

    President Akufo-Addo said although during the execution of the Compact Two there had been a temporary glitch over the Electricity Company of Ghana (ECG) and the PDS issue, “these are behind us and we are hoping that the American Administration will also understand that it is behind us, and that there is still a possibility for us to sit around the table to construct something that will mean a lot”.

    He said the country was a functioning and strong democratic state, where majority of the people were committed to democratic values, and expressed optimism that despite the difficulties that the changing of government brought about, the change must be done through the ballot box.

    All funds disbursed

    The MiDA Board Chairman, Prof. Yaa Ntiamoah Baidu, said the board was charged with the responsibility of overseeing the implementation of the compact.

    She said by the revised compact end date, which was June 6, this year, all projects retained and prioritised for implementation had been completed, inaugurated and handed over to the beneficiaries.

    Some of the beneficiary institutions include the ECG, the Ghana Grid Company Ltd, the Ghana Standards Authority, the Energy Commission, the Public Utilities Regulatory Commission, the Ministry of Education, the Korle Bu Teaching Hospital and the Kwame Nkrumah University of Science and Technology.

    Prof. Baidu said the revised compact funding following the termination of the concession agreement was $347 million and that had been fully disbursed.

    Source: Graphiconline.com

  • US$50 million Kasoa BSP to be completed in August MiDA boss

    The Chief Executive Officer of Millennium Development Authority (MiDA), Martin Eson-Benjamin has disclosed that the Kasoa Bulk Supply Point (BSP) is scheduled to be completed in the third quarter of 2021.

    The MiDA boss made this statement at the Kasoa Bulk Supply Point station on April 27, 2021.

    Addressing the press at the Kasoa BSP, Mr Eson-Benjamin said the project which cost US$50 million is expected to be completed by August 2021.

    “Both the Pokuase and Kasoa BSP cost US$110 million. The Pokbuase BSP is US$60 million while the Kasoa BSP is US$50 million. By the end of May the Pokuase will be completed and by the end of August, this Kasoa BSP would have been completed but inaugurating it can be any other time.

    The Kasoa project is 60 percent complete. Works on the ongoing 435MVA Gas Insulated Switchgear Bulk Supply Point at Kasoa in Central Region in the Republic of Ghana is progressing speedily,” the MiDA boss told the media.

    The Kasoa BSP, when completed would be the second-largest BSP in the country after the 580 MVA Pokuase BSP.

    Both modern bulk supply point projects are funded by the Millennium Development Authority.

    They are also part of the major infrastructural investments envisaged under the ECG Financial and Operational Turnaround (EFOT) Project.

    The project would, among other things, reduce the transmission and distribution system losses suffered by GRIDCo and ECG respectively, and would ultimately improve the operational and financial performance of the utility providers.

    It would, further, improve the power supply in Kasoa and its surrounding communities in the Central Region with about 250,000 customers expected to be served.

    Source: www.ghanaweb.com