Parliament has approved US$250 million IDA loan for the Ghana energy sector recovery programme ( ESRP) to reduce cost of electricity.
The Financing agreement is between the Government of Ghana and the International Development Association (IDA) of the World Bank Group.
The amount of Two Hundred and Fifty Million United States Dollars
(US$250,000,000.00) for the Ghana Energy Sector Recovery Programme (ESRP) was presented to the House on Friday, 26* July, 2024 by the Minister of State at the Ministry of Finance, Abena Osei-Asare for and on behalf of the Minister responsible for Finance in accordance with Article 174 (2) of the Constitution and the Standing Orders of parliament.
The approved loan will provide funding for the ESRP to support specific activities aimed at reducing cost of electricity purchases, increase revenue collection to improve the financial management system of ECG as well as support the National LPG Promotion Programme.
Patrick Yaw Boamah,chairman of the finance committee who presented the report disclosed that the committee observed that despite the efforts by Government to extend electricity to all parts of the country, there are still disparities in access to electricity. The challenges faced by the sector, particularly related to financial sustainability and operational efficiency, were quite significant and require concerted efforts to address.
“It is in the light of this and in view of the successes achieved under the programme, Government, in its continuous efforts, decided to extend the implementation of the Energy Sector Recovery Programme (ESRP). In order to do this, the World Bank has agreed to fund the programme.”he said
The Speaker of parliament who was presiding at the time, after putting the question declared that the house has approved the Loan agreement.