The Millennium Challenge Corporation (MCC) has given Ghana government up to October 30, to reinstate the Power Distribution Services (PDS) agreement.
Failure to do this will result in sanctions, a letter signed by Vice President of the Department of Compact Operations in the United States of America, Kyeh Kim stated.
Government has already indicated its readiness to call the bluff of the Americans and proceed with a termination of the concession.
But the letter dated October 18, 2019, and addressed to the Finance Minister, Ken Ofori-Atta, and government shows that a number of meetings had already taken place between MCC and government from September 22-24 and October 15-18 in New York.
Following those meetings, the letter indicated that the parties had agreed on steps which will lead to the return of the concession agreement and the various licenses that had been suspended.
After that meeting, government was expected to announce the reinstatement of the PDS concession by October 30, 2019.
Once this was done, the MCC will release to the Millennium Development Authority (MiDA) – managers of programmes under the Millennium Challenge Account – the second tranche of the Millennium Challenge Compact.
Government is also expected to, by the same date “lift the suspension of the Lease and Assignment Agreement (LAA), Bulk Supply Agreement (BSA) and Government Support Agreement (GSA).
“Cause the Energy Commission to lift the suspension of PDS’ retail supply license,” the letter added.
Read the letter below: