Ghana Parliament approves $250m World Bank loan for energy sector recovery

Parliament has approved a $250 million loan agreement from the International Development Association of the World Bank to support the Ghana Energy Sector Recovery Programme.

The loan, which was earlier rejected before Parliament went on break, is among the reasons the House was recalled for the two-day emergency sitting.

The loan is intended to bolster efforts in stabilizing and rejuvenating Ghana’s energy sector by tackling the financial challenges and ensuring a reliable supply of electricity to both households and businesses across the country.

During the proceedings, the Minority initially raised concerns about the utilization of US$90 million as consultancy fees included in the agreement which they could not provide satisfactory explanation on it.

They claimed that the fees were excessive and required further scrutiny before approval could be granted.

The Minority Caucus however agreed to support the approval of the loan facility upon further and satisfactory explanation from the Majority Side over the $90 million consultancy fees.

The Majority after the approval of the loan agreement highlighted the urgent need for funds to resolve critical issues in the country’s energy sector.

They stressed that the recovery programme is essential for sustaining the energy supply, reducing debt, and promoting economic growth.

Source: GNA