Parliament has approved a $250 million loan agreement from the World Bank, aimed at bolstering the country’s struggling energy sector under the Ghana Energy Sector Recovery Programme.
The decision, reached after a contentious debate, comes amidst mounting pressure to address the sector’s persistent financial and operational challenges.
The loan approval followed an emergency recall of Parliament, driven by the Majority in the House, despite the recess.
The recall was initiated to push through key government business, with energy reforms at the top of the agenda. However, the process was not without resistance.
Members of the Minority raised concerns about a $90 million consultancy fee embedded within the loan agreement, questioning its size and the necessity for further scrutiny.
They argued that the figure was disproportionately high and called for greater transparency on how the funds would be allocated, urging a more measured approach to approval.
In contrast, the Majority stressed the urgency of securing the funds, citing the critical need to address longstanding issues within the energy sector, which has been plagued by inefficiencies and financial difficulties.
They argued that delays in the loan’s approval would only exacerbate the sector’s woes, potentially stalling necessary reforms.
The approved loan is part of broader efforts to stabilise Ghana’s energy sector, which has been burdened by debt and infrastructure challenges.
Proponents of the loan contend that the World Bank’s involvement will facilitate the much-needed reforms, although questions over the consultancy fee and broader concerns around fiscal transparency are likely to persist.
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CitiBusiness
