By: Racheal Asamoah
The Ministry of Finance says the World Bank has approved a $250 million credit from the International Development Association, (IDA) and an additional $10 million grant from the Energy Sector Management Assistance Programme.
This is to support a 4-year Ghana Energy Sector Recovery Programme for Results, (PforR) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.
In a statement issued by the Public Relations Unit of the ministry, the PforR will provide financing directly 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.
It said the Clean Cooking Component of the Programme will increase the access of Ghanaian households, schools, and businesses to Liquifed Petroleum Gas for domestic and commercial use. The PforR will provide direct incentives to subsidize the cost of stoves and accessories.
The statement also said “the ESRP is expected to provide a wide range of benefits to consumers which includes market development, affordability, energy access and equity, health and environmental protection against air pollution and associated health risks.”