The operations of the Electricity Company of Ghana is likely to be privatized partly. This is part of conditions that the country should meet before it can start accessing the 500 million dollar Millennium Challenge Compact Funds from the US government.

The proposal will see a private firm takeover the company in the form of a management contract, to oversee the operations of ECG possibly in some parts of the country.

Other  conditions,  that government is supposed to work are: pay all debts  owed  the Electricity  Company of Ghana, government  is also required to  work on improving the regulatory environment to attract more independent power producer.

The country is also likely to start receiving part of almost 500 million dollars of the funds from August.

MCC will make an initial investment of up to 308.2 million dollars to put the Electricity Company of Ghana, the country’s main distribution company, on a sustainable path, help the utility meet current electricity needs and upgrade infrastructure to reduce outages and improve service.

A second tranche of up to 190 million dollars in funds will be made available if Ghana accomplishes a set of reform targets set forth in the Compact.

On August 5, 2014, the Government of Ghana signed the second Millennium Challenge Corporation Compact which is the largest U.S. Government-funded transaction of President Obama’s Power Africa initiative.

The Second Compact dubbed the Ghana Power Compact seeks to double access to power on the African continent—with the Government of Ghana.

The Compact intends to invest up to $498.2 million to support the transformation of Ghana’s electricity sector and stimulate private investment.

The Compact will support improved management of Ghana’s entire power system, providing a more robust framework for private investment as well as a more competitive process for the procurement of power from independent producers.

It will address challenges in distribution, generation and access to energy in Ghana. The Government of Ghana will invest $37.4 million of its own funds in the initiative making the Compact a total investment of up to $535.6 million.