Ghana, Switzerland sign pact on power extension (page 15)

Saturday, September 6, 2008.
THE governments of Switzerland and Ghana have signed a US$12 million agreement to implement the Electricity Sector Reform and Extension Programme in Ghana.
The assistance which is in the form of a grant, is to support the Ghana government to achieve a high-performing electricity sector as well as implement structural changes in the sector.
The programme, which is in three components, includes expansion of electricity supply in the Central Region; technical support to the Public Utilities Regulatory Commission (PURC) to better carry out its task as a regulator for the electricity sector, as well as to offer support to the electricity distribution sector to enable it acquire efficient management structures.
The agreement was signed at the premises of the Accra International Conference Centre (AICC) as a side event of the just-ended Third High Level Forum on Aid Effectiveness in Accra.
In addition was a trilateral memorandum of understanding (MoU) concerning US$1 million which was signed between the Ministry of Finance and Economic Planning (MOFEP), the Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), and the Swiss State Secretariat for Economic Affairs (SECO) to offer support to the Tax Policy Unit at the ministry under the Good Financial Governance Programme of GTZ with Ghana.
Ghana’s Minister of State for the Ministry of Finance and Economic Planning, Dr Anthony Akoto Osei, signed on behalf of Ghana while the Swiss Ambassador to Ghana, Mr Nicolas Lang, signed on behalf of his country.
The signing of the first agreement on Electricity Sector Reform Extension Programme was witnessed by the Deputy Minister for Energy, Mr Kwame Amporfo Twumasi. Present at the joint ceremony were the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, the Head of Operations the Swiss State Secretariat for Economic Affairs (SECO), Mr Wener Gruber; the Chief Executive Officer of the Volta River Authority (VRA), Owura Kwaku Sarfo; the Managing Director (MD) of the Electricity Company of Ghana (ECG), Mr Jude Adu Amankwah, and other Ghana government officials.
Speaking at the ceremony, Mr Lang said the US$12 million assistance was supposed to help the country in her bid to expand electricity, the deprived areas especially.
He added that the support aligned itself with the Ghana Energy Development and Access Project (GEDAP) of the World Bank and also presented a case of good practice of donor harmonisation and alignment with the needs of Ghana.
He said the trilateral co-operation was another proof of Switzerland’s strong intention to reduce transaction cost for all parties concerned and to deliver support as efficiently as possible.
Mr Lang pointed out that the signing of the agreement was part of the Swiss economic development assistance to Ghana which included the country’s activities in the field of macro-economic support, infrastructure financing as well as trade and private sector promotion.
He also observed that the additional US$1 million support was part of a larger Good Financial Governance Programme to focus on assisting the Tax Policy Unit of the MOFEP in its efforts to mobilise national resources for financing development programmes.
“By this, the Tax Policy Unit will be in a better position to develop a pro-growth and pro-poor tax policy framework to reduce economic distortions related to tax and strengthen the domestic resource base”, he pointed out.
For his part, Mr Baah-Wiredu expressed gratitude to the Swiss government for supporting Ghana, adding that the electricity expansion work in the Central Region would help create economic activities in the region to reduce poverty.
The Deputy Minister of Energy, Mr Kwame Amporfo Twumasi, said the energy sector would ensure that the money was used for its intended purpose.