Parliament ratifies Second Millennium Compact
Parliament has ratified the treaty between Ghana and the United States for the Second Millennium Challenge Compact.
Advertisement
The total Millennium Challenge Compact (MCC) Funding to Ghana, under the treaty is $498.2 million, made up of $308.20 million in Tranche I and $190.0 million in Tranche II.
The Government of Ghana is expected to contribute 7.5 per cent of the amount, which is equivalent to US$37,365,000 and which would raise the sum to US$535,565 million.
The money, according to the treaty, is to be invested in the energy sector.
Statements in opposition
Some members of Parliament, notably the members for Atwima Mponua and Adansi Asokwa respectively, Mr Isaac Asiamah and Mr KT Hammond, kicked against the treaty arguing that it was a deliberate ploy to open the window for the government to sell off the country’s main electricity distribution company, the Electricity Company of Ghana (ECG), to the highest bidder.
They contended that the terms and conditions of the compact, which recommends a private sector participation in the operations of the ECG, meant that the government needed to divest its interest in the EGG in order to benefit from the compact.
They cited a portion of the committee’s report to back their argument that the only reason the wording of the compact suggested a private sector participation in a state-owned facility such as ECG was to eventually dispose it off to the highest bidder and most likely to a foreign company to the detriment of Ghana.
Counter arguments
However, the Deputy Minister of Finance, Mr Cassiel Ato Forson; the Chairman of the Finance Committee, James Kludze Avedzi and the Ranking Member on the Finance Committee, Dr Anthony Akoto Osei, among other member groups, disagreed with the Messrs Asiamah and Hammond.
They said private participation in the management of the company was not tantamount to a sale or the divesting of the interest of the state.
Background
The Millennium Challenge Compact is between the United States of America (USA), acting through the Millennium Challenge Corporation (MCC) and the Republic of Ghana acting through the Millennium Development Authority (MiDA).
Ghana was selected as eligible to develop this compact prior to completion of a $547 million compact which came into force in February 2007 and ended in February 2012.
Ghana was subsequently named eligible to develop the second compact and was also named as one of the four countries to participate in the pilot project for the Partnership for Growth, an initiative intended to create the next generation of emerging markets through better coordinated and strategically focused United States government programmes and resources.