Millennium Development Authority signs agreement with BOG

Accra, Aug. 1, GNA - The Millennium Development Authority (MiDA), the institution administering the Millennium Challenge Account (MCA), will in August sign an Implementing Entity Agreement with the Bank of Ghana to facilitate the extension of credits to farmers in the beneficiary districts, where the compact is being implemented. The MCA was instituted in 2002 by the US government to provide alternative sources of funding development in developing countries. Beneficiary countries are allowed to propose their own programmes to receive funding.

Speaking at a press briefing to highlight what was being done since the Millennium Challenge Compact was signed a year ago, Mr. Martin Eson-Benjamin, Chief Executive Officer of MiDA, said the deal with the Bank of Ghana would allow for the necessary arrangements needed for the funds to flow through rural and commercial banks as well as non-bank financial institutions to farmers in the districts.

He said although there were some initial delays in bringing the agreement into fruition, it was central to the re-disbursement of Credit funds.

Similar agreements across various sectors of the programme would be signed with the respective implementing institutions. Beneficiary districts are in the Northern Region, the Afram Basin and Southern Ghana.

About 1.5 million Ghanaians are expected to benefit under the programme being funded with a Compact sum of $547 million to be used to modernise agriculture, provide transportation and deliver rural development services and facilities.

Mr. Eson-Benjamin said while the Authority was not oblivious of the great expectations of the public, it was important to note that thorough preparations were required to ensure efficient and speedy progress of work in the next few months.

He said the initial disbursement of the Compact Funds was made on March 6, this year, opening the way for the Authority to draw on accounts.

He said following the MCC Board's approval of Workplans, detailed Multi-year Financial Budget, the Fiscal Accountability Plan, the Audit Plan and Procurement Plan, Initial Disbursement of Compact Funds occurred on 6 March 2007.

This enabled the commitment of $52.0m for MiDA Program Activities in Compact Year I.

Mr Eson-Benjamin said the MCC had approved the fast-tracking of some social infrastructural projects in selected districts, which would involve the rehabilitation of 35 schools in seven districts across the three intervention zones.

In the meantime, MiDA had embarked on a programme of in-field validation of documents prepared at the pre-feasibility stage of the compact development process in the 23 districts. The exercise to validate all the Agriculture, Transportation and Community Services Projects for the Northern Zone was completed in May and documented enabling MiDA to identify clearly, programmes that needed to be concentrated on in all the five districts.

Mr Eson-Benjamin said an elaborate community outreach programme has been put in place to bring vital information to stakeholders. Ghana is among 16 countries in the developing world and one of the seven African countries to have been selected to benefit from the fund. Criteria for selection of beneficiaries are formed on the bases of governing justly, investing in people and encouraging economic freedom. 01 Aug 07