AfrElec: Ghana secures $250mn World Bank loan for energy sector overhaul

Ghana’s parliament has approved a $250mn loan from the International Development Association (IDA) of the World Bank Group to support the country’s Energy Sector Recovery Programme (ESRP). 

The funds will target initiatives aimed at reducing electricity purchase costs, enhancing revenue collection, and improving the financial management systems of the Electricity Company of Ghana (ECG), the IDA said in a statement.

The facility, initially rejected on July 30 amid concerns that $90mn had been allocated for consultancy services, was reconsidered after the Finance Ministry clarified that only $10mn (GHS160mn) would be earmarked for consultancy. This explanation allowed the Speaker of Parliament, Alban Bagbin, to refer the agreement back to the Finance Committee for further review, leading to its approval.

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