Parliament approves $250m loan for energy sector

Parliament has approved a $250 million loan agreement from the World Bank to support the Ghana Energy Sector Recovery Programme, aimed at improving power distribution and reducing losses by the Electricity Company of Ghana.

The approval of this facility, which had been previously rejected before the parliamentary recess, was a primary reason for recalling Parliament for a two-day emergency session.

The loan is expected to play a crucial role in stabilising and revitalising Ghana’s energy sector by addressing longstanding financial challenges and ensuring a reliable electricity supply to households and businesses across the country.

During the discussions, the minority raised strong concerns, particularly about a $90 million consultancy fee included in the loan agreement.

They argued that the fee was excessively high and needed further scrutiny before the agreement could be approved.

Despite these objections, the loan was eventually approved, with the majority underscoring the urgent need for the funds to address critical issues in the energy sector.

They emphasised that the recovery program is vital for sustaining energy supply, reducing debt, and promoting economic growth.