USA: U.S. Secretary of State John Kerry praises Ghana as U.S. signs pact to boost African nation's energy sector

Record ID: 460004

  • Title: USA: U.S. Secretary of State John Kerry praises Ghana as U.S. signs pact to boost African nation's energy sector
  • Date: 5th August 2014
  • Summary: WASHINGTON, DC, UNITED STATES (AUGUST 5, 2014) (AGENCY POOL) MILLENIUM CHALLENGE CORPORATION CEO DANA HYDE, U.S. SECRETARY OF STATE JOHN KERRY, AND GHANAIAN PRESIDENT JOHN DRAMANI MAHAMA ENTER ROOM AND APPROACH PODIUM (SOUNDBITE) (English) U.S. SECRETARY OF STATE JOHN KERRY SAYING: "Ghana's second compact is another link in the long chain of friendship between our countri
  • Embargoed: 20th August 2014 13:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: International Relations
  • Reuters ID: LVA8J3UI04PKI7S2EAYJUW8EYFOW
  • Story Text: The United States will invest nearly $500 million to modernize Ghana's power sector in a bid to help it attract private sector investment and double energy access on the African continent, the State Department announced on Tuesday (August 5).
    Secretary of State John Kerry and Ghanian President John Dramani Mahama signed the Ghana Power Compact, the largest U.S. government-funded transaction of the Obama administration's Power Africa program.
    Heads of state of most African countries are in Washington this week for the U.S.-Africa Leaders Summit, which aims to showcase U.S. interest in the continent through a series of government-private partnership deals to boost trade and investment.
    The Millennium Challenge Corporation (MCC), the U.S. government's independent foreign aid agency, will provide the funding to create a "self-sustaining energy sector in Ghana by reforming laws and regulations needed to transform the country's power sector," according to the State Department.
    "Ghana's second compact is another link in the long chain of friendship between our countries," Kerry said. "The first compact helped to pave highways and support farmers in the export market. This second compact will transform the energy and help to provide reliable power."
    According to the U.S. Agency for International Development, Ghana has 2,719 megawatts (MW) of installed generation capacity, an inadequate amount to serve a population of about 25 million and a major constraint to economic growth.
    "Today, this compact is proof positive that Ghana is once again leading with its commitment to good governance and to economic prosperity," Kerry said.
    The new pact is expected to draw more than $4 billion in private energy investment from U.S. and global energy firms, improving management of Ghana's power system and making the power procurement process more competitive.
    President Mahama expressed thanks on behalf of his nation.
    "I wish to express our immense to the government of the United States of America, and the people of America for partnering with Ghana through these laudable initiatives," he said.
    MCC CEP Dana Hyde and Ghanaian Minister of Finance and Economic Planning Seth Terkper signed the agreement as Kerry and Mahama looked on.
    Ghana will invest $37.4 million of its own money into the initiative.
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