$250 Million World Bank Energy Sector Recovery Loan With $90 Million Consultancy Fee Rejected By Parliament

Parliament has rejected a $250 million loan intended for the Ghana Energy Sector Recovery Programme (ESRP).

The financing agreement, proposed between the government and the International Development Association (IDA) of the World Bank Group, aimed to fund activities to reduce electricity purchase costs and enhance revenue collection for distribution utilities.

The loan was also designed to improve the financial management system of the Electricity Company of Ghana (ECG) and support the National LPG Promotion Programme.

However, the consideration of the agreement was abruptly halted following a revelation by Asawase legislator, Muntaka Mubarak, who highlighted that over $90 million of the loan amount would be allocated to consultancy services alone.

This disclosure led to the unanimous support from both the Minority and Majority members of the Finance Committee to reconsider the loan approval.

This unexpected turn of events has raised concerns over the allocation of funds and the efficacy of financial management within the proposed programme, prompting a re-evaluation of the financial strategies aimed at improving Ghana’s energy sector.

Source:norvanreports.com