The World Bank has approved a $250 million credit from the International Development Association (IDA) and an additional $10 million grant from the Energy Sector Management Assistance Programme.
The development Programme aims to support a 4-year Ghana Energy Sector Recovery Programme for Results (PforR) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.
A release issued by the Ministry of Finance (MoF) today, said the PforR will provide financing directly to energy sector utilities to implement capital expenditure programmes and complement regulatory and policy reforms of the energy sector supported under the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.
“The Clean Cooking Component of the Programme will increase the access of Ghanaian households, schools, and businesses to Liquified Petroleum Gas for domestic and commercial use.
The PforR will provide direct incentives to subsidize the cost of stoves and accessories,” it said.
The release added that the ESRP is expected to provide a wide range of benefits to consumers which includes market development, affordability, energy access and equity, health and environmental protection against air pollution and associated health risks.
World Bank Country Director for Ghana, Liberia, and Sierra Leone, Robert Taliercio, said, “Through this important results-based financing, the World Bank is committed to supporting the recovery of Ghana’s energy sector and its financial sustainability.
The operation aims to strengthen revenue collection and improve the quality of energy supply through investments in prepaid metering and in the commercial and meter management systems of distribution utilities.”
The Minister for Finance, Dr Mohammed Amin Adam also said, expressed gratitude to the World Bank for their support in the attainment of the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy).
He said Ghana’s quest to achieve financial viability in electricity distribution and increasing access to clean cooking solutions was essential for building sustainable energy systems that support economic development, improve public health, and protect the environment while promoting energy access and equity for all.
“Our access to sustainable energy is not just about powering homes and businesses, it’s about empowering communities, protecting the environment, and fostering inclusive and sustainable development,” the minister added.
The Energy Sector Management Assistance Programme provides knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions.
Source: Graphiconline
