Ghana Energy Sector Transformation Initiative Project

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The development objective of the Energy Sector Transformation Initiative Project for Ghana is to strengthen the capacity of the energy sector to implement sector reforms, and improve energy sector planning and coordination in Ghana. The project has five components: (a) Management of energy sector financial flows; (b) Sector planning and coordination; (c) Energy access; (d) Natural gas; and (e) Project management. First component, Management of energy sector financial flows will assist in addressing the financial viability of the energy sector by improving revenue management at sector level, improving revenue collection at the utilities’ level, improving organizational structures, and strengthening the power companies’ operational and financial management (FM) functions. Second component, sector planning and coordination is to enhance planning and coordination across the energy sector, this component will assist the Government to design effective institutional arrangements with clear mandates for the regulatory institutions in the energy sector, conduct technical studies on the sector including electricity sector assessment and a gas sector assessment; Third component, energy access has three activities: (a) conducting feasibility and investment planning studies for grid extension and off-grid electrification to reach the Government’s goal for universal electrification by 2030; (b) preparing a strategy for increasing access to safe clean cooking as committed under SDG 7; and (c) conducting studies to upgrade NEDCo’s sub-transmission, distribution and operational systems to improve its operational efficiency; Fourth component, natural gas includes three activities: (a) development of a strategy for balancing natural gas demand and supply; (b) review of WAGP treaties and operation; and (c) support for GNPC in their role as gas aggregator, as well as GNGC and other gas sector agencies and institutions; Fifth component, project management will finance the engagement of consultants to handle the required fiduciary, monitoring, reporting, and coordinating responsibilities. It will also finance the operating costs of the PIU, required project management, consultations and coordination workshops, and the development and implementation of a communications strategy for the energy sector.