The World Bank has approved a substantial $260 million package from the International Development Association (IDA) to support a four-year Ghana Energy Sector Recovery Programme for Results (PforR).
This funding, comprising a $250 million credit and an additional $10 million grant, aims to improve the financial viability of electricity distribution and increase access to clean cooking solutions in Ghana.
The approval, facilitated by the Energy Sector Management Assistance Programme, seeks to address critical issues within Ghana’s energy sector.
The PforR will provide direct financing to energy sector utilities to implement capital expenditure programs, complementing the regulatory and policy reforms supported by the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.
A significant component of the Programme focuses on increasing access to Liquified Petroleum Gas (LPG) for Ghanaian households, schools, and businesses for both domestic and commercial use. This will be achieved through direct incentives to subsidize the cost of stoves and accessories, enhancing the affordability and accessibility of clean cooking solutions.
The Ghana Energy Sector Recovery Programme is expected to deliver a range of benefits to consumers, including market development, affordability, energy access and equity, health improvements, and environmental protection against air pollution and associated health risks.
Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone, emphasized the importance of the initiative. “Through this important results-based financing, the World Bank is committed to supporting the recovery of Ghana’s energy sector and its financial sustainability.
“The operation aims to strengthen revenue collection and improve the quality of energy supply through investments in prepaid metering and in the commercial and meter management systems of distribution utilities,” Taliercio stated.
Finance Minister Dr. Mohammed Amin Adam expressed the government’s gratitude for the support.
“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,” he said.
Dr. Adam further highlighted the broader implications of sustainable energy access, stating, “Our access to sustainable energy is not just about powering homes and businesses; it’s about empowering communities, protecting the environment, and fostering inclusive and sustainable development.”
The Energy Sector Management Assistance Programme will continue to provide knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions, reinforcing Ghana’s efforts toward a more resilient and equitable energy sector.
