Ghana has secured a $260 million facility from the World Bank under the Energy Sector Recovery Programme, aimed at restoring financial stability and enhancing the energy sector. The agreement, finalized in Washington, DC, during the IMF/World Bank Annual Meetings, focuses on advancing revenue collection and improving energy delivery quality by funding prepaid metering and commercial meter management systems for Ghana’s utilities.
Out of the total facility, $250 million is a loan, with an additional $10 million granted to the Ghanaian government. Finance Minister Dr. Mohammed Amin Adam signed the agreement on Ghana’s behalf, while World Bank Country Director Robert Taliercio O’Brien represented the World Bank Group.
Dr. Amin Adam expressed that the financing would address critical challenges in the energy sector, noting, “This year alone, we have spent approximately 18 billion cedis to bridge energy sector shortfalls, a cost level that we cannot maintain.” He highlighted that Ghana’s current economic recovery presents an ideal time to reinforce the energy sector and emphasized the government’s commitment to effective allocation of the facility.
Robert O’Brien, World Bank Country Director, reiterated the World Bank’s commitment to Ghana, saying this collaboration underscores their dedication to the nation’s energy sector and broader development goals.
Facility Details and Focus Areas
In June, the World Bank greenlit $250 million in credit through the International Development Association (IDA) and an additional $10 million grant via the Energy Sector Management Assistance Program (ESMAP) to support Ghana’s four-year Energy Sector Recovery Programme for Results (PforR). This initiative aims to strengthen the financial stability of electricity distribution and broaden access to clean cooking solutions.
The PforR will directly fund energy sector utilities, allowing them to increase capital expenditures while also supporting regulatory and policy reforms under the World Bank’s development policy financing series and the IMF’s Extended Credit Facility. Through this program, Ghana is set to achieve more sustainable energy management and improved services for its population.
SOURCE: http://dew360.com
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