Minority Rejects Approval Of World Bank $250m Loan

The Opposition National Democratic Congress, NDC Minority in Parliament has voted to reject a World Bank $250 million loan facility for the Ghana Energy Sector Recovery Programme (ESRP).

The objective of the loan was to provide funding for the ESRP to support specific activities aimed at reducing the costs of electricity purchases and increasing revenue collection of the distribution utilities.

The PforR was to support Ghana’s Energy Sector Recovery Programme (ESRP) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.

The World Bank on June 12, 2024 approved a $250 million credit from the International Development Association (IDA) and a $10 million grant from the Energy Sector Management Assistance Program for a 4-year Ghana Energy Sector Recovery Program for Results (PforR) subject to parliamentary approval.

The Bank in its report says electricity distribution losses are high in Ghana due to a low collection rate and below-cost recovery tariffs, undermining the operational and financial performance of energy utilities in the country as the bank has discovered that, the Government of Ghana transfers about 2% of GDP annually to cover the energy sector’s financial shortfall.

At the consideration of the agreement, the MP for Asawase, Muntaka Mubarak, raised many fundamental issues, including the fact that more than $90 million of the said amount will be spent on consultancy alone, forcing the Minority to oppose the deal using the voice votes to beat the Majority on the floor.

The Majority Leader Alexander Afenyo Markins, in reaction, expressed “total” disappointment in the unexpected adjournment handed over to them by the Speaker of the House, Alban Sumana Kingsford Bagbin.

The Majority was more disappointed when the Speaker never gave his closing remarks, and the remarks from the two Leaders as used to be the case.

The Leader of Government Business, who poured out his regrets “at the turn of event”, said it was unacceptable for the speaker to adjourn the house sinedie without recourse to a well-established convention before recess.

The Majority Leader, Afenyo Markins, fumes, “As a matter of proceedings, business of this house is conducted on the ground of consensus in consultation with the speaker”.

He noted that, as a leader, he has engaged all parties ahead of “early adjournment”, as announced by the speaker a few days ago, for the house to consider other pressing national issues before recess.

He, however, promised to get the needed signatories from members for recall by the Standing Orders of Parliament and the 1992 Constitution of the Republic of Ghana.

Source:dailyguidenetwork.com