Ghana Power Compact

Through our $498 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

Compact Budget

Milestones

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

Compact Projects

Access Project

  • $10,000,000Project Total Amount
  • $7,475Project Amount Committed
  • $6,899Project 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.

Projected Long-Term Results

Electricity Company of Ghana Financial and Operational Turnaround Project

  • $148,563,951Project Total Amount
  • $21,193,248Project Amount Committed
  • $24,051,690Project 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

  • $26,147,799Project Total Amount
  • $718,817Project Amount Committed
  • $307,854Project 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

  • $54,191,650Project Total Amount
  • $3,795,921Project Amount Committed
  • $137,505Project 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

Power Generation Sector Improvement Project

  • $15,501,500Project 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

  • $3,404,420Project Total Amount
  • $1,694,540Project Amount Committed
  • $1,289,931Project 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 15, 2018