Parliament Approves $250 Million World Bank Loan to Revitalize Ghana’s Energy Sector

Parliament approved a $250 million World Bank loan for Ghana’s energy sector, despite concerns over consultancy fees. However, tax exemptions for 1D1F companies were blocked.Parliament has approved a $250 million loan from the World Bank to support Ghana’s Energy Sector Recovery Programme. This loan, initially rejected before Parliament’s recess, was a key reason for recalling the House for an emergency two-day sitting.

The loan is intended to stabilize and rejuvenate Ghana’s energy sector, addressing financial challenges and ensuring a reliable electricity supply to households and businesses nationwide. During the proceedings, the Minority raised concerns about the inclusion of $90 million in consultancy fees, which they considered excessive and demanded further clarification. After receiving satisfactory explanations from the Majority, the Minority ultimately supported the approval.

The Majority stressed the critical need for the funds to resolve pressing issues in the energy sector, asserting that the recovery programme would sustain energy supply, reduce debt, and promote economic growth.

Meanwhile, Parliament once again failed to approve $350 million in tax exemptions for some One District One Factory (1D1F) companies. The Minority, who had more members present, blocked the exemptions, arguing that they would primarily benefit government cronies. These tax exemptions have been pending since 2021, with some Majority members, notably Kweku Kwarteng, the former Chairman of Parliament’s Finance Committee, also opposing the waivers.

Source:thehighstreetjournal.com