Power Africa: Ghana To Attract $4bn From America
Wednesday, August 20, 2014
Recently, Ghana signed a Power Compact with the Millennium Challenge Corporation (MCC), making it the current largest American Government-funded transaction of President Obama’s Power Africa initiative.
The Ghana Power Compact facilitates the investment of up to $498.2 million for the transformation of Ghana’s power sector while also stimulating private investments.
Eventually, the deal is expected to raise more than $4 billion from American and global energy firms. Key among the objectives of this compact is the reformation of laws and regulations required for the revolution of the sector, the provision of a robust framework for private investments and the establishment of a more competitive process for the acquisition of power from independent producers.
“MCC’s Ghana Power Compact takes a system-wide approach to transforming Ghana’s energy sector,” Dana Hyde, MCC’s CEO said regarding the deal. “The compact invests in projects focused on distribution to make the country’s power utility financially viable and capable of attracting private investment while it also funds initiatives supporting greater energy efficiency and cleaner renewable energy.”