During the parliamentary session on July 30, 2024, Member of Parliament for the Asawase Constituency, Mubarak Mohammed Muntaka, expressed concerns about the allocation of funds in the $250 million Energy Sector Recovery Programme (ESRP) loan.

Muntaka pointed out that out of the total loan amount, $94.8 million has been designated for consultancy services. He questioned the necessity of such a large portion of the loan being allocated to consultancy and called for a thorough explanation.

While Muntaka recognized the importance of supporting the Electricity Company of Ghana (ECG) in its core functions, he argued that the consultancy costs are excessive and could further strain the finances. He emphasized the need to reject this allocation, stating,

"If we have to take $250 million and allocate about $94.8 million for consultancy, we need to reject this. We don’t need it because it is going to impoverish us."

Muntaka urged a reevaluation of the loan's allocation to ensure it effectively addresses the challenges in the energy sector without unnecessary expenses.

The Ghana Energy Sector Recovery Programme was a financing agreement between the government and the International Development Association (IDA) of the World Bank Group.

The loan was intended to provide funding for the ESRP to support specific activities aimed at reducing the costs of electricity purchases, increasing revenue collection of distribution utilities, improving the financial management system of ECG, and supporting the National LPG Promotion Programme.

ID/NOQ

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