Ghana's Minister of Finance, Dr. Mohammed Amin Adam, has announced the signing of a transformative $250 million credit and $10 million grant facility with the World Bank for the Energy Sector Recovery Program for Results project.

This marks the first of such agreements signed in Washington DC in over two decades.

The project, part of Ghana’s broader Energy Sector Recovery Programme, aims to improve the financial viability of the electricity distribution sector and increase access to clean cooking solutions, thereby enhancing health outcomes and environmental sustainability.

Dr. Adam highlighted the urgent need to address high electricity distribution losses and low collection rates, which have resulted in financial shortfalls amounting to approximately 2% of GDP annually.

“It is in this connection that we continue to work with our partners, the World Bank, to frame important interventions in the energy sector. By enhancing revenue collection and operational efficiency, this project aims to stabilize the energy sector, which is crucial for promoting economic growth and attracting investments,” the minister stated.

This year alone, Ghana has spent about GHS18 billion ($1.2 billion) on energy sector shortfalls.

The minister emphasised the importance of working with the World Bank to implement interventions that enhance revenue collection and operational efficiency.

According to him, these efforts are crucial for stabilising the energy sector, promoting economic growth, and attracting investments.

“Towards this, we have prioritised investments in infrastructure improvements, such as prepaid metering systems and enhanced commercial management for distribution utilities. These investments are designed to streamline operations and reduce costs, thereby contributing to a more robust energy supply chain that can better support industrial and economic growth,” he added.

Dr. Adam urged the Ministry of Energy and all stakeholders to ensure effective and efficient implementation of the project, adhering to financial laws and World Bank guidelines to guarantee responsible use of the facility for the benefit of Ghanaian citizens.

“I am confident that by investing in the energy sector and having a financially viable electricity distribution sector, we will be guaranteeing and outperforming the medium-term growth targets. This will be part of the process of fostering an environment for attracting investments, stimulating productivity and job creation and ultimately driving economic growth,” he added.

Expressing gratitude to the World Bank and other development partners, Dr. Adam highlighted the strategic partnership aimed at achieving Ghana's long-term vision for sustainable development and a brighter future for the nation.

At the signing ceremony for a transformative US$250.0 million credit and US$10.0 million grant facility with the World Bank for the
Energy Sector Recovery Program for Results (PforR) project. This collaboration with the @WorldBank will deepen our efforts to create a sustainable… pic.twitter.com/Hz00630wpY

— Office of the Finance Minister-Ghana (@oofmghana) October 25, 2024

The PforR Project, which is a subset of Ghana’s Energy Sector Recovery Programme, is designed to improve the financial viability of our electricity distribution
sector; and increase access to clean cooking solutions for the people of Ghana, thereby significantly improving health… pic.twitter.com/2O8Jna5xIc

— Office of the Finance Minister-Ghana (@oofmghana) October 25, 2024