The World Bank has disclosed that it has been made aware of allegations surrounding the operation of the Development Bank Ghana, a beneficiary under the Ghana Development Finance Project supported by International Development Association (IDA).
“We take all fiduciary issues very seriously and we are engaging key partners to obtain full clarifications”, a short statement from the bank said.
What is the IDA?
The IDA is the part of the World Bank that helps the world’s low-income countries.
IDA’s grants and low-interest loans help countries invest in their futures, improve lives, and create safer, more prosperous communities around the world.
World Bank approves $250m for Ghana
On June 18, 2024 the World Bank approved a $250 million credit from the IDA and an additional $10 million grant from the Energy Sector Management Assistance Programme, to support a 4-year Ghana Energy Sector Recovery Programme for Results (PforR) to improve the financial viability of electricity distribution and increase access to clean cooking solutions.
The PforR will provide financing directly to energy sector utilities to implement capital expenditure programs and complement regulatory and policy reforms of the energy sector supported 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 will increase the access of Ghanaian households, schools, and businesses to Liquified Petroleum Gas for domestic and commercial use. The PforR will provide direct incentives to subsidize the cost of stoves and accessories.
The ESRP is expected to provide a wide range of benefits to consumers which includes market development, affordability, energy access and equity, health and environmental protection against air pollution and associated health risks.
Robert Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone said, “Through this important results-based financing, the World Bank is committed to supporting the recovery of Ghana’s energy sector and its financial sustainability. The operation aims to strengthen revenue collection and improve the quality of energy supply through investments in prepaid metering and in the commercial and meter management systems of distribution utilities,”.
Minister for Finance, Dr Mohammed Amin Adam also said, “ the Government of Ghana is grateful to the World Bank for their support in the attainment of the Sustainable Development Goals (SDGs), particularly Goal 7 (Affordable and Clean Energy). Our quest to achieve financial viability in electricity distribution and increasing access to clean cooking solutions is essential for building sustainable energy systems that support economic development, improve public health, and protect the environment while promoting energy access and equity for all”.
He continued that “our access to sustainable energy is not just about powering homes and businesses, it’s about empowering communities, protecting the environment, and fostering inclusive and sustainable development”.
The Energy Sector Management Assistance Programme provides knowledge, technical assistance, and advisory services to help countries enhance their institutional capacity and implement sustainable energy solutions.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.