The Ministry of Energy has refuted allegations that more than $90 million of the $250 million World Bank loan allocated for the Ghana Energy Sector Recovery Programme (ESRP) will be spent on consultancy fees.
This statement follows Parliament’s decision to pause the loan approval process after Asawase MP Muntaka Mubarak expressed concerns about consultancy costs.
Deputy Minister of Energy and Chairman of the Energy Committee in Parliament, William Owuraku Aidoo, countered Mubarak’s claims.
In an interview with Joy News, he clarified that the $90 million is earmarked for various initiatives, such as acquiring and installing smart pre-paid meters, upgrading data management systems, and boosting ECG’s operational efficiency.
”Honestly, I don’t know where he got that from because there is a document that was circulated to all Members of Parliament and it is very clear that the 90 million was totally not for consultancy purposes.”
“The 90 million was for the procurement and installation of smart pre-paid meters along with its associated software, which was 2.5 million, that goes to ECG.”
“And then 10 million of that 90 million goes to NEDCo. In addition to that, part of the 90 million was for the enhancements to data management systems and that was 5 million US dollars.
”And then you have the strengthening of the commercial information system, 10 million. And then finally, associated ICT systems for improving the operational efficiency of ECG, that is 2.5 million. So this is what the 90 million comes to,” he said.
He, however, did not specify the exact amount allocated for consultancy fees.
“I don’t have the figure right now,” he said.
The Energy Sector Recovery Programme (ESRP) is a funding arrangement with the International Development Association (IDA) from the World Bank Group, designed to lower the costs of electricity purchases, boost revenue collection for distribution utilities, enhance ECG’s financial management system, and advance the National LPG Promotion Programme.