$250m World Bank loan approved by parliament

The latest information available to the Elections-in-Ghana news portal is that a $250 million World Bank loan has been approved by the parliament of Ghana.

The $250 million World Bank loan approved would be used to finance Ghana’s Energy Sector Recovery Programme.

The loan was one of the major reasons for the recall of Parliament for a two-day emergency sitting. The loan was previously disapproved before the parliamentary recess

The importance of the $250m World Bank loan approved

The $250 million World Bank loan approved is expected to be used to improve Ghana’s energy sector, help address existing financial challenges, and also help improve available power and its stability across the country.

Government needs funding to ensure a reliable supply of electricity for industries, businesses, and domestic users

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The approval of the credit facility was not without reservations from the minority in Parliament, especially with not less than a $90 million consultancy fee embedded within the loan agreement.

The minority in parliament were of the view that, the $90 million consultancy fee embedded within the loan agreement was exorbitant.

They called for further scrutiny of the amount before it can be approved.

Despite these objections, the loan facility was ultimately approved, with the majority emphasising the urgent need for funds to resolve critical issues in the energy sector.

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They highlighted that the recovery programme is essential for sustaining the energy supply, reducing debt, and promoting economic growth.