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25.02.2021 Business & Finance

World Bank sets matters right on support for Ghana's energy sector

By World Bank Ghana
World Bank sets matters right on support for Ghana's energy sector
LISTEN FEB 25, 2021

ACCRA, February 25, 2021 -Following recent media reports, the World Bank wishes to clarify that it has not provided any financing or guarantees to the Independent Power Producers (IPPs) that signed Power Purchase Agreements with the Government of Ghana or the Electricity Company of Ghana during the (Dumsor) energy crisis in 2014-2016.

To secure Ghana’s energy future, the World Bank supports the Energy Sector Recovery Plan (ESRP) of the Government of Ghana for affordable and reliable electricity supply and enhances accountability in the energy sector. The ESRP mandates the rationalization of gas and power purchase costs in line with the demand and approves the procurement of energy supply and service contracts in a competitive manner.

The implementation of this policy will be essential to ensure that new power generation capacity is procured competitively and transparently based on the most cost-effective basis. This will prevent a recurrence of over-supply of generation capacity in the future.

The World Bank Group provided financing and a guarantee to the Sankofa Gas Project, which since 2019 has increased the availability of natural gas for power generation by leveraging private capital investment and promoting a cleaner energy mix.

The World Bank is committed to supporting Ghana in its efforts to sustain economic growth, accelerate poverty reduction, and enhance shared prosperity in a sustainable manner.