By Francis Ntow, GNA
Accra, April 18, GNA – The government through a World Bank support programme is to procure some one million modern meters to help improve revenue collection and increase access to electricity in Ghana.
Dr Mohammed Amin Adam, Minister of Finance, announced this during a fireside chat at the ongoing World Bank Group/International Monetary Fund (WBG/IMF) Spring Meetings in Washington, USA.
He stated that the procurement of the new meters would form part of a number of actions being taken to increase revenue collection to enhance operational effectiveness in the electricity value chain and solve sector persistent challenges.
Last month, Mr Sam Dubik Mahama, Managing Director, Electricity Company of Ghana (ECG), highlighted the need for consumers to promptly pay their bills to enhance the company’s operational efficiency.
Providing an update on the work done to shore up revenue, the Finance Minister, said: “We’re discussing with the World Bank under the Programme-for-Results (PforR) initiative, which will require us to procure up to one million meters… to improve upon collection.”
The World Bank’s Programme-for-Result financing instruments is one of the innovative approaches of helping strengthen institutions, building capacities, and enhancing partnerships by linking the disbursement of funds to direct achievement of specific measurable outcomes.
The Minister said that there were about seven different meters in the country that “are not speaking to each other,” adding that the new partnership with the World Bank would see the country procured meters that would harmonise the system.
“We want to be able to harmonise and standardise our metering system, and under the PforR the World Bank is supporting us to procure one million standardised meters that would help in improving on the collection,” he said.
He expressed confidence about the PforR scheme in also helping the country attain universal electricity access by the end of 2024, and close the energy sector financing gap of some US$1.9 billion.
Currently, the country has an 88.85 per cent electricity access, compared with the 90 per cent industry standard, which is one of the pillars of the Sustainable Development Goals (SDGs).
The SDG seven aims to ensure access to affordable, reliable, and sustainable energy for all, with the African Development Bank (AfDB) indicating that some 90 million people ought to be connected to electricity each year by 2030.
Meanwhile, the World Bank and AfDB have teamed up to reached some 300 million Africans, including Ghanaians with electricity by 2030 through distributed renewable energy systems and grids.
This is to ensure that about the 600 million Africans who lack of access to electricity are connected, while solving the significant barriers to health care, education, productivity, digital inclusivity, and job creation.
In that regard, the World Bank would be investing up to US$35bn through its concessional arm for low-income countries – the International Development Association (IDA), said, Mr Ajay Banga, the Bank’s President.
“We at the African Development Bank will make sure that we’re able to provide 50 million [people] access [to electricity] by 2030,” said, Dr Akinwumi Adesina, AfDB Group President.
GNA