Let’s suffer to gain

The news of Ghana’s signing of the second compact of the Millennium Challenge Account (MCA), under which Ghana is expected to be given US$498 million to improve the power sector, was received as welcoming news by many Ghanaians.

Ghanaians have reason to be happy because they have been witnesses to what we were able to achieve with the first compact. If for nothing at all, the first compact enabled Ghana to build the George Walker Bush (N1) Highway, which has added at least one good road to our stock and considerably eased vehicular traffic in Accra.  

The second compact, dubbed power compact, is said to be the largest US government transaction to date under that country’s Power Africa project under which up to US$54.2 million is expected to be invested to improve the Northern Electricity Distribution Company.

Like many such assistance programmes, Ghana is expected to meet some conditions before the disbursement of the first tranche of the money. 

One of the major conditions, we understand, is the requirement for the government to show that it is on track to repaying arrears owed the Electricity Company of Ghana and complete consultations for private sector involvement in energy provision, as well as a programme to reduce energy losses and generally to improve service. 

The involvement of the private sector in the provision of power evokes some apprehension, in view of the already high cost of power for domestic and industrial use. The irony is that many Ghanaians have called for the payment of realistic tariffs for power and water for a long time but the lack of political will has prevented succeeding governments from taking the necessary steps to make energy generation a profitable venture.

Fears have also been expressed that there will be job losses in view of the privatisation of aspects of power provision as a condition for the release of the first tranche.

We are, however, of the view that with the commitment shown by the government to implement reforms for the transformation of the energy sector and to boost the confidence of the Millennium Challenge Corporation (MCC) in Ghana’s ability to meet the conditions, what is left is for the citizenry to brace themselves up to take the bull by the horn and help the government achieve the terms of the compact.

As explained by the Country Team Lead of the US Embassy in Accra, it takes usually between nine and 12 months for the start of the project after signing, considering the fact that a board would be constituted and some recruitment done for the proper utilisation of the fund.

The Daily Graphic  is aware that the government has started the process of constituting a new board and will soon be done with all the necessary recruitments.

The government is doing its bit and we, as citizens, must be ready to bear the likely immediate harsh effects that the reforms are likely to bring to avert the problems we are facing in the energy sector.  

It is better to suffer now for future generations to enjoy than to enjoy now for posterity to suffer.