Ghana gets US$260m from World Bank to boost energy sector and clean cooking solutions

The World Bank has approved a US$250 million credit from the International Development Association (IDA) and an additional US$10 million grant from the Energy Sector Management Assistance Programme to support a four-year Ghana Energy Sector Recovery Programme for Results (PforR).

This initiative aims to improve the financial viability of electricity distribution and increase access to clean cooking solutions in Ghana.

The PforR is expected to provide financing directly to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms in the energy sector 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 is designed to increase access for Ghanaian households, schools, and businesses to Liquefied Petroleum Gas (LPG) for domestic and commercial use.

The PforR will provide direct incentives to subsidize the cost of stoves and accessories.

The ESRP is expected to offer a wide range of benefits to consumers, including market development, affordability, energy access and equity, health improvements, and environmental protection against air pollution and associated health risks.

These details were disclosed by the Ministry of Finance in a statement issued last week.