Government is on track at clearing all debt owed the Electricity Company of Ghana (ECG), as part of conditions required to release the 489 million dollars under the Millennium Challenge Account, compact two.
Reported figures as at August 2015 show that, the government of Ghana owed the ECG over 500 million dollars.
Addressing Editors of some media organizations in Accra, the Chief Executive Officer of the Millennium Development Authority (MiDA) Engineer Owura K. Sarfo stated that government is following the road map set to clear all arrears owed the ECG before the fund is released.
“The government debt to ECG is in two categories with the first comprising all debt owed the company until 2013, and then debts after 2013”, he disclosed,
He stated that government has commit itself to finance the bulk of the debt which ends at 2013 while Municipal, Metropolitan and District Assemblies (MMDAs) settle the debts incurred after 2013.
Even though he could not disclose exactly how much have been paid, Mr. Sarfo maintained that government has made quarterly payments in fulfilment of a crucial condition under the agreement that cannot be overlooked.
He further stated that government has made an initial contribution of 7.75 million dollars as part of a 37 million dollar Government of Ghana contribution to the project.
Mr. Owura explained that the Private Sector Participation under agreement required government to show evidence that the tender document for an acceptable transaction have been released for selection through an open and transparent process.
Under the Millennium Development Account “Power Compact”, the US government has pledged a grant of 498 million dollars to boost Ghana’s electricity supply in order to reduce poverty through economic growth.
