Water privatization in Ghana
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Water privatization in Ghana has been discussed since the late 1990s as a reaction to poor service quality and low efficiency of the existing urban water utility Ghana Water and Sewerage Corporation (GWSC), renamed Ghana Water Company Ltd. (GWCL) in 1999. The World Bank supported the process of private sector participation in the urban water sector from the beginning.
Originally a 10-year lease contract was envisaged . In 2000, a lease contract between GWCL and the US company Azurix failed due to accusations of corruption and public opposition which led to the formation of the Coalition against Water Privatization.[1]
In 2004, the World Bank's Board approved a credit of US$103 million for the Urban Water Project, which was later turned into a grant. The Nordic Development Fund contributes another US$5 million, while the Government of Ghana provides the remaining US$12 million of the US$120 million project.[2]
The main objectives of the program, which will end in 2010, are to
- significantly increase access to water supply systems in the urban areas of Ghana with an emphasis on improving the service for the urban poor; and
- restoring the long-term financial stability, viability, and sustainability of the GWCL.
It provides technical assistance and training. Moreover, it supports private sector participation.[3]
Since October 2006 the private operator Aqua Vitens Rand Ltd. (AVRL), a joint venture of the public Dutch company Vitens Rand water services BV and Aqua Vitra Ltd., supports GWCL under a five-year management contract to improve its performance and rehabilitate and extend the infrastructure.[4]
The main objectives of the management contract are:
- Extending reliable water supply especially to low-income areas
- Making potable water affordable for low-income consumers
- Increasing cost recovery
- Ensuring investments based on low-cost and concession financing
- Supporting further involvement of the private sector
- Reducing non-revenue water
- Increasing water treatment
In March 2008, severe water shortages in Accra were reported, leading the Minister for Water Resources, Works and Housing to review whether AVRL is working in compliance with the management contract. However, he explained that the reason for the shortages were unforeseen power outages at two water treatment plants in Weija and Kpong. According to the minister, the overall situation will improve notably by the end of 2008 due to several new boreholes and a more stable power supply.[5]
[edit] See also
Water supply and sanitation in Ghana
[edit] References
- ^ Rahaman;, Abu Shiraz; Everett, Jeff; Neu, Dean (2007). "Accounting and the move to privatize water services in Africa". Accounting, Auditing & Accountability Journal, Volume 20, Number 5, 2007 , pp. 637-670(34) 20 (5): 637-670. Emerald Group Publishing Limited. doi:., p. 648-651
- ^ World Bank. Ghana: World Bank Turns US$103 Million Ghana Urban Water Credit To Grant. Retrieved on 2008-03-28.
- ^ World Bank. Urban Water Project. Retrieved on 2008-03-28.
- ^ Water-Aid Ghana (2005), Assessment of national sanitation policies: Ghana case. Final report., Accra, <http://wedc.lboro.ac.uk/projects/proj_contents0/WEJEH%20-%20Sanitation%20Policy/www/outputs/Ghana%20Sanitation%20Policy%20Assessment%20Report.pdf>. Retrieved on 26 March 2008, p. 19
- ^ Benson, Ivy (2008-03-12), “Government maintains Aqua Vitens deal…to manage water supply in the country”, The Ghanaian Chronicle, <http://db.ghanaian-chronicle.com/thestory.asp?id=5993>. Retrieved on 27 March 2008.
