Energy Ministry Rebuts Allegations of $90 Million Consultancy Fee in World Bank Loan
The Energy Ministry has categorically denied allegations that $90 million out of a $250 million loan from the World Bank intended for the Ghana Energy Sector Recovery Programme (ESRP) would be diverted to pay consultants.
This loan, facilitated through the International Development Association (IDA) of the World Bank, is designed to support measures aimed at reducing electricity procurement costs, enhancing revenue collection for distribution utilities, improving the financial management system of the Electricity Company of Ghana (ECG), and advancing the National LPG Promotion Programme.
Parliament’s approval process for the deal was abruptly halted following claims by Asawase MP, Muntaka Mubarak, who contended that a significant portion of the loan, exceeding $90 million, was earmarked for consultancy fees.
In response, William Owuraku Aidoo, Chairman of the Energy Committee, rebutted these claims in an interview on Joy FM’s Midday News, suggesting that Mr Mubarak may not have thoroughly reviewed the pertinent documents.
Mr Aidoo provided a detailed breakdown of the $90 million allocation, which is as follows:
– $2.5 million for the procurement and installation of smart pre-paid meters and associated software for the ECG.
– $10 million allocated to the Northern Electricity Distribution Company (NEDCo).
– $5 million designated for enhancements to data management systems.
– $10 million aimed at strengthening the commercial information system.
– $2.5 million for associated ICT systems to enhance ECG’s operational efficiency.
Despite this detailed allocation, Mr Aidoo did not specify the exact amount reserved for consultancy fees, noting only that he did not have the figure at hand.
The controversy underscores the critical scrutiny over the disbursement and utilization of the World Bank loan, as stakeholders emphasize the importance of transparency and accountability in the management of funds intended for crucial energy sector reforms.
