MiDA, NEDCo Sign Agreement Under Power Compact II

The Millennium Development Authority (MiDA) and the Northern Electricity Distribution Company (NEDCo) have signed an Agreement which paves way for MiDA to release funds for four key project activities valued at US$65.7 million in the distribution company’s operational area.

The activities come under the NEDCo Financial and Operational Turnout (NFOT) Project, one of six Projects that make up the Ghana Power Compact Programme.

The Agreement, referred to as the Implementing Entity Agreement (IEA), enables the Government of Ghana and the Stakeholder institutions to meet their responsibilities and obligations under Compact II.

It allows for an operational agreement between NEDCo and MiDA, and also serves as a mechanism to channel Compact funds to NEDCo in line with the Compact II Programme, which aims to eradicate poverty through economic growth.

The heads of the two institutions signed the Agreement for their respective Organizations at a Ceremony in Accra.

Martin Eson-Benjamin, Chief Executive Officer of MiDA said after the signing ceremony that, “NEDCo is a critical electricity distributor for the northern parts of Ghana and Government is committed to applying the Compact funds to turn NEDCo around, as its financial and operational viability is essential to the various development projects currently ongoing and anticipated for the northern part of our country.”

He added that, “MiDA is ready to roll out the NFOT Project to meet the requirements of Government’s District level rural industrialization programme and support other social services.”

He thanked the Staff, Management and the Board of NEDCo for their cooperation and participation in the engagements between the two Organizations.

On his part, Frank Akligo, Managing Director of NEDCo said, “NEDCo, as the Implementing Entity and MiDA the accountable entity for the Compact Programme have committed to a historic Agreement which will pave the way for the implementation of the earmarked Projects, which support NEDCo’s vision to be an economically viable and self-sustaining Organization, with the capacity to attract additional resources to finance its operations. It will also significantly benefit the broad masses of the people in our operational coverage area.”

The $65.7million grant will fund four NEDCo Project Activities, which will provide among others modern information technology systems, vehicles, tools and equipment for NEDCo’s operating staff to safely and adequately manage their operating functions, represents 14% of the total US$535.3 million Compact II Funds, provided by the US government through its Agency the Millennium Challenge Corporation (MCC) and the Government of Ghana.

Economic activities such as agribusinesses, commerce and the industrialization of the northern parts of Ghana are expected to pick up with the injection of Compact funds into NEDCos operations. Villages will be connected to the grid as part of the expansion of electricity services to the AgDevco Farming Hub, located close to the village of Babator in the Bole District of the Northern Region.

The Government of Ghana sees the potential of the NEDCo Project as a catalyst to placing the Northern parts of Ghana on an accelerated industrial development path. For Government, the one district-one factory intervention can be sustainable only with a strong NEDCo providing efficient power to the factories to be sited in the northern parts of the country.

It is estimated that between 1.4 million and 2.2 million Ghanaians will benefit from the MiDA supported NEDCo Project during and well after the Project.

Source: Citibusinessnews