World Bank approves $250m credit, $10m grant for Ghana to boost energy sector
The Ministry of Finance has announced that 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 for Ghana.
This is 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.
In a press release from the Ministry of Finance on Tuesday, June 18, it said PforR will provide financing directly to energy sector utilities to implement capital expenditure programs 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.
The ESP 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.
Speaking on the support, Ghana’s Minister for Finance, Dr. Mohammed Amin Adam expressed appreciation to the World Bank on behalf of government.
He said, “the Government of Ghana is grateful to the World Bank for their support in the attainment of the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy). Our quest to achieve financial viability in electricity distribution and increasing access to clean cooking solutions is 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.”
Below is a copy of the press release from the Ministry confirming the support from the World Bank