World Bank grants $250 million credit for energy sector

World Bank approves $250 million credit for Ghana Energy Sector Recovery Programme

The World Bank has approved a $250 million credit to support a four-year Ghana Energy Sector Recovery programme, aimed at improving the financial viability of electricity distribution and increasing access to clean cooking solutions in the country. In addition to the credit, the World Bank has also approved an additional $10 million grant from the Energy Sector Management Assistance Programme.

This funding comes after Ghana secured a memorandum of understanding from the Official Creditor Committee of the Paris Club, allowing the country to postpone its debt repayments until 2026. The Ghana Energy Sector Recovery Programme for Results (PforR) will provide financing directly to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms in the energy sector.

The program will also focus on increasing access to Liquefied Petroleum Gas (LPG) by households, schools, and businesses, with direct incentives to subsidize the cost of stoves and accessories. The Energy Sector Recovery Programme is expected to provide benefits such as market development, affordability, energy access, equity, health, and environmental protection against air pollution.

The Minister of Finance, Dr. Mohammed Amin Adam, expressed appreciation to the World Bank for its support in achieving the Sustainable Development Goals, particularly Goal Seven on affordable and clean energy supply. The Energy Sector Management Assistance Programme will provide knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions.

Overall, the approval of the second review by the IMF Board is expected to unlock more financial assistance from development partners, such as the $260 million from the World Bank, to support Ghana’s energy sector recovery and financial sustainability efforts.

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