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First with the News

World Bank Approves $260m For Ghana’s Energy Sector

June 18, 2024
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By Ebi Kesiena

The World Bank has approved $260 million for Ghana’s energy sector. This includes a $250 million credit from the International Development Association (IDA) and a $10 million grant from the Energy Sector Management Assistance Programme.

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This was contained in a statement signed by the Finance Minister Dr. Mohammed Amin Adamon on Tuesday noting that this funds will support Ghana’s Energy Sector Recovery Programme for Results (PforR), a four-year initiative aimed at improving the financial stability of electricity distribution and increasing access to clean cooking solutions.

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According to the Ministry of Finance, the PforR will provide direct financing to energy sector utilities to implement capital expenditure programs and complement ongoing regulatory and policy reforms supported by the World Bank and the IMF’s Extended Credit Facility Programme for Ghana.

The Clean Cooking Component of the Programme will expand access to Liquified Petroleum Gas (LPG) for households, schools, and businesses in Ghana.

Also, the PforR will offer subsidies to reduce the cost of stoves and accessories, enhancing affordability.

Explaining further, the Programme is expected to benefit consumers by developing the market, increasing affordability and access to energy, protecting health and the environment from air pollution.

Therefore, Minister Amin Adam expressed gratitude to the World Bank for supporting Ghana’s efforts to achieve Sustainable Development Goal 7 (Affordable and Clean Energy).

He stated that achieving financial viability in electricity distribution and increasing access to clean cooking solutions are essential for sustainable energy systems that support economic development, improve public health, and protect the environment.

World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, stated that this results-based financing aims to support the recovery and financial sustainability of Ghana’s energy sector.

The focus will be on strengthening revenue collection and improving energy supply quality through investments in prepaid metering and commercial management systems for distribution utilities.

The Energy Sector Management Assistance Programme provides technical assistance and advisory services to help countries like Ghana enhance their institutional capacity and implement sustainable energy solutions.

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