The World Bank has approved significant financial support for Ghana’s energy sector, comprising a $250 million credit from the International Development Association (IDA) and an additional $10 million grant from the Energy Sector Management Assistance Programme.
This funding is designated for a four-year Ghana Energy Sector Recovery Programme for Results (PforR), aimed at enhancing the financial stability of electricity distribution and increasing access to clean cooking solutions.
The PforR initiative will channel funds directly to energy sector utilities, enabling them to implement essential capital expenditure programs. This financial support will complement regulatory and policy reforms in Ghana’s energy sector, as endorsed by the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.
A significant aspect of the Programme is its focus on increasing access to Liquefied Petroleum Gas (LPG) for domestic and commercial use. It includes direct incentives to subsidize the cost of stoves and accessories, thereby enhancing the availability of clean cooking solutions for Ghanaian households, schools, and businesses.
The Energy Sector Recovery Programme is expected to deliver numerous benefits, including market development, improved affordability, increased energy access and equity, and enhanced health and environmental protection against air pollution and associated health risks.
Robert Taliercio, 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 stated, “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.”
Dr. Mohammed Amin Adam, Ghana’s Minister for Finance, expressed the government’s gratitude for the World Bank’s support in achieving the Sustainable Development Goals (SDGs), particularly Goal 7, which focuses on affordable and clean energy.
He highlighted the importance of financial viability in electricity distribution and the need for increased access to clean cooking solutions for building sustainable energy systems that support economic development, improve public health, and protect the environment.
“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,” Dr. Adam added.
The Energy Sector Management Assistance Programme provides vital knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions. This support will be crucial in ensuring the success of Ghana’s energy sector recovery and its long-term sustainability.
By: Nancy Oye Tanihu | Metrotvonline.com | Ghana
