Ghana secures $260 million World Bank deal to boost energy sector efficiency
Ghana has signed a $260 million deal with the World Bank to address financial losses and inefficiencies in its energy sector.
The country loses approximately $1.2 billion annually in its energy sector.
The deal, part of the Energy Sector Recovery Programme, includes a $250 million credit for the procurement of metres and a $10 million clean cooking grant, aligned with the Bank's Programme for Results (PforR) initiative.
The agreement allows the World Bank to facilitate the procurement of one million electricity metres through competitive bidding.
The initiative also aims to reduce Ghana's metering gap, integrate new meters into billing systems, and enhance revenue collection for the Electricity Company of Ghana (ECG), the Ghana News Agency reports.
Speaking at the signing event, Finance Minister Dr. Mohammed Amin Adam emphasised the government’s commitment to reforming the energy sector.
“The cash waterfall mechanism must be adhered to, and we won’t compromise,” he was quoted.
He further tasked ECG with addressing distribution losses and improving collection rates, noting that “in 2024 alone, deficits made the government spend approximately, GHS18 billion (US$1.2 bn) in financing.
Dr. Adam further noted that the project will remain the backbone of a thriving economy.
