Parliament Approves $250m Loan For Energy Sector

Parliament, has approved a US$250 million loan facility from the International Development Association (IDA) of the World Bank, to support the Ghana Energy Sector Recovery Programme.

Per the agreement, the facility, will be used to support efficient power distribution and help reduce loses in the sector as a result of operations of the Electricity Company of Ghana (ECG).

The loan is intended to bolster efforts in stabilizing and revitalizing Ghana’s energy sector, addressing longstanding financial challenges, and ensuring a reliable supply of electricity to both domestic and commercial users across the country.

The majority side which requested for emergency recall of lawmakers, cited the loan agreement as a key reason for the two-day emergency sitting under Article 112(3) at the Accra International Conference Centre (AICC).

The agreement, was previously objected by the Minority side before the House went on recess few weeks ago.

During the proceedings, the Minority side, which previously opposed the agreement, repeated it opposition, expressing concerns and citing the over US$90 million consultancy fee included in the loan agreement.

The National Democratic Congress (NDC) parliamentarians, opined that the amount was huge and so needed more time to examine it thoroughly before approving.

The agreement was, therefore referred to the Finance Committee on Tuesday when the House returned for a new report, following the refusal of the NDC side, to allow for a recession motion from the Majority Leader, Alexander Afenyo-Markin, against the rejection of the loan agreement on the last day of sitting at the last meeting.

But yesterday Wednesday, September 4, when a new report of the Committee was presented, a member and deputy majority chief whip, Habib Iddrisu, explained the concerns of the Minority regarding the consultancy services allocation, have been addressed.

According to the Committee, the Finance Ministry, explained that the over US$90 million allocation, was not just for consultancy, but other items like the purchase of prepaid meters.

Ranking member on the Finance Committee, Isaac Adongo, in seconding the motion, indicated the satisfaction of the minority with the breakdown of the allocation earlier captured under consultancy.

The Majority side, argued the urgency of the situation in the sector.

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

Earlier, before the MPs went on recess, the former Minority chief whip, Mohammed Muntaka Mubarak was the first to raise the portion for the consultancy.

However, the Member of Parliament for Asawase constituency yesterday, also indicated he had no further issues with the facility.

As a result, the loan facility was finally approved according by consensus.

The Recovery Programme is designed to cater for the debts in the energy sector, to continue power supply and also enhance economic growth.