World Bank Approves $260m For Electricity Distribution, Clean Cooking
The World Bank has approved some $260 million in support of a 4-year Ghana Energy Sector Recovery Programme for Results (PforR), a project to improve the financial viability of electricity distribution and increase access to clean cooking solutions.
The amount comprises a $10 million grant and a $250 million credit facility from International Development Association (IDA), the Ministry of Finance confirmed this in a statement on June 18, 2024.
Under the PforR, the Minister explained that direct financing will be made to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms of the energy sector supported under the World Bank’s Development Policy Financing series and the ongoing IMF Extended Credit Facility Programme for Ghana.
For the Clean Cooling Component of the Programme, the Ministry said it will increase the access of Ghanaian households, schools, and businesses to Liquified Petroleum Gas for domestic and commercial use.
“The PforR will provide direct incentives to subsidize the cost of stoves and accessories. The ESRP is expected to provide a wide range of benefits to consumers which includes market development, affordabilly, energy access and equity, health and environmental protection against air pollution and associated health risks.”
The World Bank Country Director for Ghana, Liberia and Sierra Leone, Robert Taliercio belives the project is worth their approval.
“Through this important results-based financing, the Word Bank is committed to supporting the recovery of Ghana’s energy sector and as 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.”
