Finance Minister writes to IEA

Further discussions are ongoing with the World Bank and with the African Development Bank (AfDB) to utilise more of these facilities to support the US Millennium Challenge Corporation (MCC) Compact II energy infrastructure programme, while minimising the risk of debt burden posed to the taxpayer by mitigating the loans and guarantees added to the pure public debt. 

These institutions have agreed to offer technical assistance and advice in using these alternative structures as well as the setting up of GIIF.

• SOE and project loans as contingent liabilities: When the on-lending and Escrow mechanisms are put in place, government will start to issue guarantees for default of payment, rather than full Sovereign Guarantee as happens now. Hence, Ghana’s debt sustainability analysis (DSA) will recognise the commercial loans on a “contingent liability” basis or take account of the underlying assets such as the balances in the debt service and escrow accounts