Parliament has approved a $250 million loan agreement from the World Bank to support the country’s energy sector.
The government had explained that it is intended to aid reforms under the Ghana Energy Sector Recovery Programme.
The Minority had resisted the request for approval, but the House approved the loan by a Majority decision.
The caucus expressed concern over the over $90 million consultancy fee included in the loan agreement.
It said that the consultation fee was excessively high and required thorough scrutiny before being approved by the House.
But the majority maintained that the loan ought to be approved.
Parliament was recently called for an emergency sitting by Majority Leader Afenyo-Markin for the consideration of some key matters, including the approval of the loan.
Background
The World Bank in July this year approved a $250 million credit from the International Development Association (IDA) and an additional $10 million grant from the Energy Sector Management Assistance Programme.
The approval of the loan 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.
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.
The Clean Cooking Component of the Programme 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, affordability, energy access and equity, health and environmental protection against air pollution and associated health risks.
By: Rainbowradioonline.com/Ghana
