Ghana Power Compact

In response to the Government of Ghana’s decision to terminate the concession agreement between the Electric Company of Ghana Ltd (ECG) to private operator Power Distribution Services Ghana Ltd (PDS), $190 million originally granted to Ghana for the 20-year concession from ECG to PDS is no longer available and consequently has been removed from grant totals.

Through our $308 million compact, MCC is helping the Government of Ghana transform the power sector through private sector participation and key policy and institutional reforms that will provide more reliable and affordable power to Ghana’s businesses and households. Our investment has already catalyzed nearly $3 billion in new private investment that will support sustainable growth, including from a number of U.S. businesses. The United States is among Ghana’s principal trading partners, with bilateral trade between the two countries reaching $1.2 billion in 2015. While Ghana has experienced strong economic growth over the past 10 years, the power sector has not kept up with increasing demand from businesses and consumers. A lack of affordable and reliable power is a real barrier to doing business in the country, holding back Ghana’s potential for private investment and partnership with American businesses.

Financials

Financials as of June 30, 2020

Compact Budget

Milestones

  • Signed:
    August 6, 2014
  • Entry Into Force:
    September 6, 2016

Compact Projects

Access Project

  • $900,000Project Total Amount
  • $899,311Project Amount Committed
  • $241,767Project Amount Expended
The Access Project will facilitate safe and legal access to reliable electricity in markets and economic enclaves in urban areas. Key interventions are the replacement of electrical systems in market areas, the provision of security lighting, and a facilitation and capacity building process aimed at formalizing connections and strengthening local market governance institutions.

Electricity Company of Ghana Financial and Operational Turnaround Project

  • $213,205,212Project Total Amount
  • $179,301,392Project Amount Committed
  • $75,877,423Project Amount Expended
MCC is supporting the Government of Ghana’s efforts to improve the management and efficiency of Ghana’s largest state-owned electricity distribution utility by bringing in a private sector operator and by making investments in systems at the corporate level to improve overall service quality. The project includes targeted regional infrastructure investments to attract private sector participation, support integrated power loss management, reduce distribution system vulnerability to theft and meter manipulation, lower thermal losses in the distribution systems, and reduce the frequency and duration of outages by introducing improved system protection and sectionalizing devices in the distribution system.

Projected Long-Term Results

  • Estimated Beneficiaries 4,800,000
  • Estimated Net Benefits $143,300,000

Energy Efficiency and Demand Side Management Project

  • $22,297,799Project Total Amount
  • $18,339,189Project Amount Committed
  • $6,399,954Project Amount Expended
MCC is supporting the Government of Ghana in offsetting demand for electricity by developing improved or new efficiency standards for appliances, encouraging education and more efficient energy use among consumers, investing in more efficient Government buildings, and exploring demand side management measures, like converting streetlights to more efficient LED technology.

Projected Long-Term Results

  • Estimated Beneficiaries 19,600,000
  • Estimated Net Benefits $95,800,000

Northern Electric Distribution Company Financial and Operational Turnaround Project

  • $1,175,475Project Total Amount
  • $1,175,475Project Amount Committed
  • $1,078,903Project Amount Expended
MCC is supporting the Government of Ghana’s priority efforts to improve the management and service delivery capacity of the Northern Electric Distribution Company (NEDCo), the state-owned electricity utility serving the northern regions of Ghana. This project will support these efforts by providing infrastructure investments and support for capacity building within the utility.

Projected Long-Term Results

  • Estimated Beneficiaries 1,400,000

Power Generation Sector Improvement Project

  • $0Project Total Amount
  • $0Project Amount Committed
  • $0Project Amount Expended
The Power Generation Sector Improvement Project will work with key power sector stakeholders to improve the enabling environment around power generation, transmission and dispatch, including investment planning and sector regulation.

Projected Long-Term Results

  • Estimated Beneficiaries 19,600,000
  • Estimated Net Benefits $624,700,000

Regulatory Strengthening and Capacity Building Project

  • $2,874,095Project Total Amount
  • $2,538,650Project Amount Committed
  • $2,201,650Project Amount Expended
MCC is working with the Government of Ghana to ensure that Ghana’s electricity sector regulators, the Energy Commission and the Public Utilities Regulatory Commission, have the resources and capacity they need to ensure that power services are reliable, affordable and high quality. This project includes support for key tariff studies, technical assistance and capacity building.

Projected Long-Term Results

As of August 7, 2020