The World Bank has approved a $260m financing package to support Ghana’s efforts to reform its energy sector and improve access to clean cooking solutions.
The package, comprising a $250m credit and a $10m grant, will be used to improve the financial viability of electricity distribution and reduce losses, which are currently high due to low collection rates and below-cost recovery tariffs.
The four-year programme will also support the government’s efforts to strengthen revenue collection, improve energy supply quality, and increase access to liquefied petroleum gas (LPG) for domestic and commercial use.
The World Bank said the programme will help reduce the cost of electricity service provision, improve the economic dispatch of generation, and strengthen the commercial and operational performance of distribution utilities.
The move is seen as a boost to Ghana’s efforts to revamp its energy sector and improve the livelihoods of its citizens.
