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Ghana Power Compact

Through our $316 million compact, MCC is helping the Government of Ghana improve the power sector through investments that will provide more reliable and affordable electricity to Ghana’s businesses and households. 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, holding back Ghana’s potential for private investment.

In June 2021, MCC and the Government of Ghana amended the compact to mitigate implementation delays due to the COVID-19 pandemic.

Financials

Financials as of June 30, 2022

Program Budget

Milestones

  • Signed:
    August 6, 2014
  • Entry Into Force:
    September 6, 2016
  • Closed:
    June 6, 2022

Program Projects

  • $694,518
    Project Total Amount
  • $693,828
    Project Amount Committed
  • $693,828
    Project 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 distribution systems in market areas, the provision of security lighting, and a facilitation and capacity building process aimed at formalizing connections.

  • $214,024,898
    Project Total Amount
  • $211,978,740
    Project Amount Committed
  • $205,331,813
    Project Amount Expended

MCC is supporting the Government of Ghana’s efforts to improve the efficiency of Ghana’s largest state-owned electricity distribution utility by investing in distribution infrastructure and making investments in systems at the corporate level to improve overall service quality. The project includes targeted regional infrastructure investments to 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.

Projected Long Term Results at the Time of Program Signing
  • 4,800,000
    Estimated Beneficiaries
  • $143,300,000
    Estimated Net Benefits

  • $25,379,242
    Project Total Amount
  • $24,690,562
    Project Amount Committed
  • $23,459,247
    Project Amount Expended

MCC is supporting the Government of Ghana in offsetting demand for electricity by developing new or improved efficiency standards for appliances, supporting education in energy efficiency, investing in more efficient Government buildings, and exploring demand side management measures, like converting streetlights to more efficient LED technology.

Projected Long Term Results at the Time of Program Signing
  • 19,600,000
    Estimated Beneficiaries
  • $95,800,000
    Estimated Net Benefits

  • $1,175,475
    Project Total Amount
  • $1,175,475
    Project Amount Committed
  • $1,175,475
    Project Amount Expended

MCC intended to support 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 was designed to support these efforts by providing infrastructure investments and support for capacity building within the utility.

The planned intervention to achieve this objective was to introduce Private Sector Participation (PSP) in the form of a management contract. As the PSP did not proceed, the project was ultimately cancelled although funding was spent for design of some infrastructure activities before it was cancelled.

  • $0
    Project Total Amount
  • $0
    Project Amount Committed
  • $0
    Project Amount Expended

The Power Generation Sector Improvement Project was intended to support measures aimed at opening up the power sector and making it attractive to private investment in order to reach the Government of Ghana’s goals to have adequate installed generation capacity to meet demand. After rationalizing the project with other donor programs and existing commercial arrangements, the project was cancelled to reduce redundancy and unnecessary expense.

  • $2,574,095
    Project Total Amount
  • $2,538,650
    Project Amount Committed
  • $2,538,650
    Project 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.

Independent Evaluations

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Monitoring & Evaluation

Results to Date

The full set of performance indicators is detailed in the Monitoring and Evaluation Plan.

Impact Evaluation Framework

In addition to careful monitoring of implementation performance and measurement of preliminary results, MCC will be funding several independent evaluations that will assess the results of the MCC-funded activities. More information is available in the Monitoring and Evaluation Plan.

Electricity Company of Ghana Financial and Operational Turnaround Project
Objective

The project’s objective is to improve the quality and reliability of electricity through reduced outages and reduced aggregate technical losses. The project expects to achieve this objective through infrastructure investments designed to reduce losses and improve service quality.

Through the introduction of Private Sector Participation (PSP) in the management of ECG, the project originally aimed to improve cost-effective service delivery by ECG, reduce aggregate commercial and collection losses, and ensure ECG can serve as a creditworthy and credible off-taker under power purchase agreements. Since the Government of Ghana terminated the PSP these additional objectives will not be fully achieved.

4,800,000 $143,300,000 Energy Efficiency and Demand Side Management Project
Objective

This project’s objective is to reduce excessive energy use by consumers, thereby increasing the reserve margin between electricity supply and peak demand, making electricity more reliable. The project will also improve the financial viability of ECG and NEDCO by helping Ghana’s government agencies, which comprise a significant portion of total energy demand, to reduce their energy consumption. This project will achieve these results by developing and implementing standards and labels, improving energy audits, providing education and public information, and investing in energy efficient infrastructure.

19,600,000 $95,800,000

As of Mon Jun 06 2022 00:00:00 GMT-0400 (Eastern Daylight Time)