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06.10.2008 Business & Finance

MiDA, MoE sign partnership deal… To provide 31 communities with electricity

By Stephen Odoi-Larbi - Ghanaian Chronicle

The Millennium Development Authority(MiDA), on Friday entered into a partnership agreement with the Ministry of Energy (MoE), to extend electricity to 31 communities in the country.

A Memorandum of Understanding (MoU) has been signed between the two entities (MiDA and MoE) to that effect. The agreement thus paves way for the supply and installation of 12 transformers to pack houses, and other post-harvest infrastructure, irrigation pumps and cottage industries.

It also clears the way for the extension of power lines to energise transformers, and to supply power to farming communities.

By the agreement, the two bodies would be engaged in activities that would see to the realisation of power supply to the 31 communities, at an estimated cost of US$7m.

The Chief Executive Officer (CEO) of MiDA, Martin Esson-Benjamin, and the Minister of Energy, Mr. Felix Owusu-Adjapong, initialled the agreement for their respective institutions.

The objective of the agreement, according to Martin Esson-Benjamin, is to spell out the roles of the MoE and its agencies, towards the achievement of his outfit's (MiDA) goals, which include among others, adherence to specifications, taking ownership of completed electrical networks and facilities, application of appropriate user fees for electricity consumption, and the operation and maintenance of electrical network facilities, in accordance with accepted industry practices.

The role of the MoE and its agencies, under the agreement, would be to support the procurement of services and work, review of reports, assistance on environmental issues, monitoring of works contract and post-contract activities.

MiDA, under the agreement, would also begin its implementation of the Rural Electrification Activity of the Community Services Project compound of its programmes.

Mr. Esson-Benjamin said his outfit would go in for investments, which are consistent with the policies and strategic plans of the MoE, Electricity Company of Ghana (ECG), the Volta River Authority (VRA), and other parties, as may be agreed between MiDA and Millennium Challenge Corporation.

The Energy Minister underscored the importance of electricity to national development, and assured MiDA that his ministry would constantly be in touch with them, to ensure the realisation of the project.