US pledges support to meet energy capacity

The United States has pledged its commitment to help augment the standard of quality in energy supply, improve operational efficiencies of the utilities, and increase access to electricity in the country’s energy and power sector.

“Our government’s strong partnership, especially in the powers sector, is targetted at playing a key role in helping Ghana over one of its key constraints to growth,” the United States Ambassador to Ghana, Mr. Gene A. Cretz, told a media conference after the signing ceremony of two Memoranda of Understanding (MoUs) in Accra, aimed at strengthening Ghana’s energy sector.

Presently, Ghana has 2,800 megawatts of installed electricity capacity -- with government promising to deliver 5,000 megawatts by the end of 2016.

The Minister for Energy and Petroleum, Mr. Emmanuel Armah-Kofi Buah, signed on behalf of Ghana while Penny Pritzker, U.S. Secretary of Commerce, signed for the US government.

The MoUs signed were geared toward the implementation of institutional, regulatory and structural reforms, and the execution of catalytic, sustainable, transparent and non-discriminatory economic reforms to spur rapid broad-based and inclusive economic growth.

It also highlighted the tremendous efforts made by Ghana and the United States to ensure Ghana’s investment climate is able to absorb the significant inflow that are primed to enter the market. 

Mr. Cretz, said: “What we have to do with this is harness all the capabilities we have in our governments and agencies, as well as the private sector, to facilitate transactions between the private sector and government of Ghana to achieve all of these goals”.

He disclosed that a number of companies are gaining serious momentum on some exciting projects in the power sector in Ghana -- citing General Electric, Symbion, HPI and ECC as some of the companies.

He indicated that all those companies are making progress in the process of realising objectives of the Power Africa initiative launched by US President Barack Obama last year.

“Power Africa, an initiative of President Barrack Obama to support Africa’s enormous power potential through partnership, trade and investment, was part of the process.

“Power Africa is truly a whole government endeavour, and we are fully behind this effort and pledge our full support in helping Ghana hit the target of 5,000 megawatts by 2016.”

He said President Obama recognises the critical role power played in moving Africa into the next stage of development.

Mr. Obama launched the Power Africa Initiative (Power Africa) on June 30, 2013, during his visit to Africa. 

Power Africa draws on the tools of multiple US government agencies, including the Department of Commerce (DOC), Department of Energy (DOE), Department of State (State), Department of the Treasury (DOT), Export-Import Bank (EXIM), Millennium Challenge Corporation (MCC), Overseas Private Investment Corporation (OPIC), t U.S. African Development Foundation (USADF), U.S. Agency for International Development (USAID) and the U.S. Trade and Development Agency (USTDA), to partner with the private and public sectors to increase significantly the amount of electricity available in sub-Saharan Africa.

Mr. Cretz iss hopeful that the two countries will work hard in the coming months to finalise the US$500million grant through the second Millennium Challenge Corporation (MCC) compact to improve the energy sector.

The compact, when finalized, will directly strengthen the power sector by improving reliability and service delivery, as well as help ensure continued and cost-effective power supply.

Mr. Buah said the government welcomes the initiative and pledged the government’s commitment to play its part in ensuring that all goals of the MoUs are achieved.

He affirmed the country’s commitment to work together in addressing increased power generation, helping modernise transmission infrastructure, and strengthening distribution.

“The MoUs were very specific on the areas we are going to work with, and we are going to work to address the financial strength of the utilities, to work at addressing issues of gas and increase generation capacity, and have enough reserve margins.

“We agree that the way forward is to make sure that the investment climate is one that is attractive to the private sector, and to work closely with the government of Ghana,” Buah said.