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Business News of Saturday, 1 September 2012

Source: Daily Guide

PEF Lobbies More Ghanaian Contracts Under MCA Compact II

The Private Enterprises Foundation (PEF) has called for more local content participation in contracts which are supposed to be awarded under the Millennium Challenge Account (MCA)’s Compact II.

At a recent forum organized by the Canadian Chamber of Commerce Ghana (CCCG) for its members in Accra on opportunities available to Ghanaian businesses under the Compact II, Nana Osei Bonsu, Executive Director of PEF, said the previous compact witnessed the award of contracts worth $110 million to Ghanaian companies, $38 million to US companies while Chinese companies won a whopping $183 million in contracts.

Describing the development as a bit biased, he called on Ghana’s private sector to concentrate its efforts in the renewable energy sector under the second compact since it chiefly involves solar, windmill and hydro-electric projects.

Compact II is wholly dedicated to the improvement of power supply in the country and help industry produce at full capacity. This is because one of the key constraints of industry is the sustainability and reliability of power supply.

“There are more benefits in hydro-electric projects than the solar and windmill because with the hydro, we will not only get power for electricity but also power for irrigation projects, among others.”

In a keynote presentation at the event, Prof Samuel Sefa-Dede, chairman of the Millennium Development Authority (MiDA), explained that no special treatment shall be given to indigenous companies.

According to him, the contracts shall be awarded based on the expertise and capacity of companies.

The Minister of Trade and Industry, Hannah Tetteh, in a remark, noted that given the penchant of Ghanaian companies to market themselves on the world market recently against world players in their industries, it is imperative for local businesses to upscale the capacity of their employees to meet international standards to ensure that no shoddy work is carried out eventually.

She cited a Ghanaian company which failed to duly provide services at the end of Compact I.

As a result of that, the funds that were given to it had to be reclaimed for investment into another equally important project under the compact.

A delegation from the Millennium Challenge Corporation (MCC) is expected in the country soon to negotiate with government and officials of MiDA on exactly how much will go into sponsoring Compact II, whose focus will be to improve Ghana’s power delivery. It is expected to kick off in the early part of 2013.

Herbert Morrison, president of CCCG, in an address, noted: “We are of the firm view that providing efficient and effective power to industry will not only make our economy competitive in the global market place but in addition create jobs.”