Review of the Millennium Challenge Compact Access Project in Ghana

The Access Project is one of six projects under the Ghana Power Compact (also known as Compact II) to boost Ghana’s progress in poverty reduction and achieving economic growth through transformation of the power sector. The Compact II was signed between the Government of Ghana, USAID and Millennium Challenge Compact (MCC) on 5th August 2014, and came into force on 6th September 2016. The $10 million Access Project is aimed at improving Micro, Small and Medium Enterprises’ (MSMEs) access to reliable electricity in selected Markets and Economic Enclaves (M&EEs) in peri-urban and urban areas in the Northern Electricity Distribution Company (NEDco) and Electricity Company of Ghana (ECG) Target Regions. Through the reduction of barriers to obtaining legal connections and the solidification of partnerships among relevant institutions, the Access Project is anticipated to increase the number of new connections for MSMEs in targeted areas and provide public lighting in Markets and Economic Enclaves. The success of the Access Project will result in a positive impact on electricity delivery to selected areas. Additionally, it is expected that electricity tariff revenue collection will be improved, and incidences of electricity their will be reduced. Importantly, economic productivity in selected enclaves and the regions as a whole will be improved, as more people will have access to electricity for productive purposes.

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The Africa Centre for Energy Policy (ACEP) was established in 2010 to contribute to development of alternative and innovative policy interventions through high-quality research, analysis and advocacy in the energy and extractives sector in Africa.

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