The US government has served notice to the government of Ghana that it is too late to renegotiate the Millennium Compact.
Senior Minister Yaw Osafo-Marfo announced during his vetting that the Akufo-Addo-led administration wants to take a second look at the Compact which was agreed with the previous National Democratic Congress government.
The Ghana Power Compact, also referred to as Compact II, entered into full force in September 2016. The treaty was signed on August 5, 2014 between the Republic of Ghana and the United States of America, represented by the Millennium Challenge Corporation (MCC).
Under the Power Compact, six projects namely ECG Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, Access Project, Power Generation Sector Improvement Project and Energy Efficiency and Demand Side Management Project, will be implemented to address the root causes of the unavailability and unreliability of power in Ghana.
The West African country has received the nod to access US$498 million grant under the Compact II.
Mr Osafo-Marfo said it would also be unthinkable for the government to pay off all debts of the Electricity Company of Ghana (ECG) – as demanded by the Millennium Compact Agreement – and allow an outsider or a foreign concern to come and take over the running of the company.
“It would not be fair for the government to pay off the total debt of ECG and allow an outsider to come and run such an important public company,” he said, stressing the government will go for renegotiation.
However, the US ambassador to Ghana Robert Jackson does not think it is feasible.
“It’s too late to renegotiate… we are certainly willing to talk about how it will be executed. I’m certain that the compact as it’s structured it’s great for Ghana,” he told Accra-based Joy FM.