Ghana has secured US$260 million from the World Bank to boost the financial stability of its electricity distribution and expand access to clean cooking solutions.
This funding includes a US$250 million credit from the Bank’s International Development Association (IDA) and an additional US$10 million grant from the Energy Sector Management Assistance Programme.
The Energy Sector Management Assistance Programme provides expertise, technical assistance, and advisory services to enhance countries’ institutional capacity and implement sustainable energy solutions.
The four-year financial support for the Ghana Energy Sector Recovery Programme (ESRP) under the Programme for Results (PforR) will directly fund energy sector utilities for capital expenditure programs.
This initiative will complement regulatory and policy reforms in the energy sector, supported by the World Bank’s Development Policy Financing series, in alignment with the ongoing International Monetary Fund (IMF) program.
A statement from the Finance Ministry, released to the Ghana News Agency on Monday, June 17, noted that the PforR will provide direct incentives to subsidize the cost of stoves and accessories for Ghanaians.
The clean cooking component aims to increase access to Liquified Petroleum Gas (LPG) for households, schools, and businesses for both domestic and commercial use.
The ESRP will offer benefits such as market development, affordable and equitable energy access, and health and environmental protection against air pollution and related health risks.
Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone, stated,“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”.
He added that the operation aims to enhance revenue collection and improve energy supply quality through investments in prepaid metering and commercial and meter management systems of distribution utilities.
Dr. Mohammed Amin Adam, Minister of Finance, expressed the government’s gratitude to the World Bank for its financial assistance under the ESRP.
He highlighted that the support will help Ghana achieve the Sustainable Development Goals (SDGs), particularly Goal Seven – 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.
“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 Minister added.