A Financial Analyst and Chief Operations Officer at Dalex Finance, Mr Joe Jackson has observed that Ghana’s energy sector is in crisis.
He made this observation while describing the loss of $190 million due to the PDS Scandal as ‘sad’.
“This is so sad. Our energy sector is in crisis, yet we need help finding a way to use USD 190m,” he wrote on X.
He was reacting to reports of the closure of Ghana’s Millennium Challenge Compact by the United States.
The Millennium Challenge Corporation (MCC) stated that there are no immediate plans to resume collaboration with Ghana.
In March 2019, Ghana was poised to receive critical funding amounting to approximately $190 million aimed at bolstering the long-term sustainability of infrastructure investments and facilitating the financial recovery of the energy sector. This funding was part of the second tranche of the MCC power compact.
However, the disbursement of funds was halted due to complications arising from a failed 20-year concession agreement involving Ghana’s Power Distribution Services (PDS).
The agreement was intended for PDS to assume the operation and management of the assets and staff of the Electricity Company of Ghana (ECG).
The U.S. government suspended the transfer of funds, citing the central role of private sector participation in the MCC’s Ghana Power Compact.
Source: 3News