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MCC approved Ghana’s qualification for 2nd compact

By Ebenezer SABUTEY and JAMES DEKU

Officials from the Millennium Challenge Cooperation, MCC of the United States including Daniel Yohannes, its Chief Executive Officer last week at a courtesy call on the President in the castle has declared Ghana’s eligibility for a submission of proposal for a second compact of the Millennium Challenge Development Project.

Ghana currently has ended its five year implementation of a US$547 million project which commenced in 2007 signed by the former president of the republic, Agyekum kuffuor and the former president of the United States George Bush. Ghana’s first funding tranche, worth $547 million, ended this week with the inauguration of a 14-kilometer (8.7 miles) high way in the city by president John Atta Mills. The funds were also used for other infrastructure and agriculture projects in the world’s second biggest cocoa producer.
Most of the projects were completed and handled over to the government last week.

The officials said the MCC board, which approved of Ghana’s eligibility, noted that second compacts are reliant on successful completion of the first compacts, continued good policy performance, development of proposals that have significant potential to promote economic growth and reduce poverty and availability of funding.

“Qualifying for a subsequent compact is harder than qualifying for a country’s first compact” the officials stated.

MCC’s approach to development, which focuses on economic growth, country ownership, sustainability and accountability, directly aligns with the current president’s strategy.
MCC’s strategic priorities include an emphasis on results, private sector engagement, gender integration and effective policy reform, “it said.
The board aside Ghana has also agreed on Cape Verde, Zambia and other developing countries to continue with a second compact.

BusinessWeek has, however, gathered that Ghana plans to use the second tranche of funding from the MCC to boost investments in energy production.

Martin Eson-Benjamin, Chief Executive Officer, of the Millennium Development Authority, in an interview hinted “We are looking at a total energy supply from gas, solar to wind energy”.

He also added that studies are being conducted to decide on a new energy projects and a proposal will be sent to the US agency, which agreed on Ghana’s second deal in January, 2011.

The amount will be “determined based on studies that will be conducted”, Daniel Johannes Millennium Challenge Corporation (MCC) also disclosed in an interview.

He added that Africa accounts for about 70 percent of the corporation’s total funding of $5.2 billion, with 11 countries at various stages of completion of their funding plans.
The Millennium Challenge Cooperation, a US based government agency designed to work with developing countries, is based on the principle that aid is most effective when it reinforces sound political, economic and social policies that promote poverty reduction through economic growth.

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