Parliament has approved a $250 million loan agreement from the International Development Association (IDA) of the World Bank to support Ghana’s Energy Sector Recovery Programme.
The approval, which occurred during a two-day emergency sitting, aims to stabilize and rejuvenate the country’s energy sector by addressing financial challenges and ensuring a reliable supply of electricity to households and businesses.
The loan had previously been rejected before Parliament went on break, prompting the House’s recall to reconsider the agreement. A key point of contention was the $90 million earmarked for consultancy fees, which the Minority initially questioned, deeming the amount excessive and in need of further scrutiny.
After receiving satisfactory explanations from the Majority regarding the consultancy fees, the Minority Caucus agreed to support the loan’s approval.
The Majority emphasized the urgent need for these funds to address critical issues within the energy sector, noting that the recovery programme is vital for sustaining energy supply, reducing debt, and promoting economic growth.
