A new report from the Centre for Research on Multinational Corporations (SOMO) and ActionAid Ghana has disclosed that $2 billion of World Bank funding in oil & gas projects has supported deeply harmful fossil and energy investment in Ghana.
The report exposed how World Bank-backed projects have prioritised corporate profits while draining Ghana’s public funds.
In addition to the World Bank’s damaging funding, the report also found that foreign-led, expensive energy contracts contribute to draining over $1 billion of Ghana’s public funds annually.
“The World Bank claims to champion development. In Ghana, it has done the opposite—fueling debt while ensuring corporate profits come before public need,” says Joseph Wilde-Ramsing, acting Executive Director of SOMO. “Ghanaians are paying high prices for electricity they can’t afford, while foreign oil and gas companies reap guaranteed profits.”
The report also touched on the inefficiency of the West African Gas Pipeline which it said has not served its purpose of reducing the cost of fuel imports from Nigeria to Ghana.
“The West African Gas Pipeline, one of the first major regional energy public-private partnerships, was meant to ensure a steady supply of affordable gas from Nigeria. Instead, since its launch in 2010, gas deliveries have been inconsistent, forcing Ghana to import costly liquid fuels that the pipeline was meant to partially offset. Meanwhile, international oil giants like Shell and Chevron have enjoyed World Bank-backed financial guarantees, insulating them from financial risks.”
SOMO and ActionAid Ghana are therefore demanding that the “World Bank Group must be held accountable for the devastating consequences of its energy policies in Ghana. Instead of fostering sustainable growth, the Bank has locked the country into crippling debt, energy insecurity, and fossil fuel dependency.”