Home / Ghana Politics / World Bank Approves $250 Million Credit and $10 Million Grant to Boost Ghana’s Energy Sector

World Bank Approves $250 Million Credit and $10 Million Grant to Boost Ghana’s Energy Sector

World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept 3D rendering animation.

The World Bank has sanctioned a $250 million credit from the International Development Association (IDA) along with an additional $10 million grant from the Energy Sector Management Assistance Programme.

This funding is intended to support a four-year Ghana Energy Sector Recovery Programme for Results (PforR), aiming to enhance the financial sustainability of the electricity distribution sector and expand access to clean cooking solutions.

The PforR initiative will directly finance energy sector utilities, enabling them to implement crucial capital expenditure programs.

It will also support regulatory and policy reforms within the energy sector, aligning with the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.

A significant aspect of the PforR is the Clean Cooking Component, which seeks to increase the adoption of liquefied petroleum gas (LPG) for cooking among Ghanaian households, schools, and businesses. This initiative is expected to benefit over 2.5 million people, providing sustainable and healthier cooking alternatives.

The broader Energy Sector Recovery Programme (ESRP) will deliver a multitude of advantages to consumers, including market development, improved energy access and equity, and enhanced health and environmental protections by mitigating air pollution and related health risks.

THIS IS TRENDING:   Concerned Drivers Association to Increase Transport Fares by 15%

Robert Talerico, the World Bank Country Director for Ghana, Liberia, and Sierra Leone, emphasized the World Bank’s commitment to supporting the recovery and financial sustainability of Ghana’s energy sector.

He highlighted the operation’s focus on boosting revenue collection and improving service quality through investments in prepaid metering and advanced meter management systems for distribution utilities.

Minister for Finance, Dr. Mohammed Amin Adam, expressed gratitude to the World Bank for their continued support towards achieving the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy).

THIS IS TRENDING:   Mahama Leads Bawumia in Latest InfoAnalytics Poll Ahead of 2024 Presidential Election

He underscored the importance of financial viability in electricity distribution and increased access to clean cooking solutions as critical for sustainable energy systems that drive economic development, enhance public health, and promote environmental protection.

Dr. Amin Adam also stressed that sustainable energy access is crucial not only for powering homes and businesses but also for empowering communities, safeguarding the environment, and encouraging inclusive and sustainable development.

The Energy Sector Management Assistance Programme will continue to provide knowledge, technical support, and advisory services to help countries strengthen their institutional capacities and implement sustainable energy solutions.

About Juventus Kantaayel

Check Also

NDC Criticizes IEA for Announcing 2024 Presidential Debate Without Consultation

The Mahama 2024 Campaign has sharply criticized the Institute of Economic Affairs (IEA) following its …