Wednesday, September 3, 2008

GOVERNMENT OF GHANA SIGNS 12 MILLION DOLLAR AGREEMENTS WITH SWISS GOVEERNMENT ON ENERGY DISTRIBUTION AND GOOD GOVERNANCE

The Government of Ghana has signed two agreements, one with the Switzerland Government on Implementation of the Electricity Sector Reform and the Extension Programmer and the other a Trilateral Memorandum of Understanding on Good Financial Governance Program between the Ministry of Finance and Economic Planning, GTZ and the Swiss State Secretariat for Economic Affairs on support to the Tax Policy Unit to the MOFEP under the Good Governance Program of GTZ. The agreement was signed at the on going 3rd High Level Forum on Aid Effectiveness conference taking place in Ghana –West-Africa.




The signing of the first agreement on the Implementation of the Electricity Sector Reform, and Extension Programm was witnessed by the Ministry of Energy, represented by the Deputy Minister. Hon Kwame Ampofo Twuamsi. The Swiss support totaling 12 Million US Dollars in grant form aims at supporting the Government of Ghana to achieve a high performing electricity sector and to implement structural change in the sector. The program includes the following three Composite
• The Public Utilities Regulatory Commission, PURC will benefit from technical support to better carry out it task as the regulator for the electricity sector.
• The Electricity distribution sector will be supported in order to achieve much needed and more efficient management structure ; and
• There will be a significant contribution to poverty oriented grid expansion in the central region of Ghana.





The Second agreement was sign on behalf of Ghana by the Minister of Finance and Economic Planning. Kojo Baah Wiredu , Under this agreement the Swiss Government support is part of the larger Good Financial Governance Program of GTZ and amount to 1Million US Dollars.

This will focus on assisting the Tax Policy Unit at the Ministry of Finance and Economic Planning in its efforts to mobilize national resources for financing development programmes. By this, the Tax policy Unit will be a better position to develop a pro- growth and poor tax policy framework, to reduce economic distortions related to taxation and strengthen the domestic resource base.

In an interview with VNN Benjamin Appiah Acqauye, the Swiss Ambassador Mr. Nicolas Lang to Ghana, noted that the trilateral cooperation is another proof of Switzerland strong intention to reduce transaction cost for all parties concerned and to deliver support as efficiently as possible and stress further that there are no conditions attached to this grants given to Ghana.
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