Rehabilitation and Expansion works on the Koforidua Water System to boost water supply to the township and adjoining communities is to commence soon.
These would involve the construction, supply and installation of electro-mechanical equipment, design and engineering of the new system, raw water intake from the Volta River and a raw water treatment plant.
The 13.7 million euros commercial credit and contract agreements were signed today between the Government, KBC Bank of Belgium and Messrs Denys NV and the Ghana Water Company Limited.
The credit would be used to finance phase one activities, including clearing and designing of the project. The amount represents the commercial component of a mixed facility totalling 38.7 million Euros the government was accessing from Belgium with an overall grant element of 38.6 per cent. The agreement for the State-to-State concessionary component would be signed later.
Mr Kwadwo Baah-Wiredu, Minister for Finance and Economic Planning and Mrs Vercammer Ilse, a representative of KBC Bank of Belgium, initialled the agreement.
Mr Baah-Wiredu said growing population and the inadequate sources of water supply had posed a major problem to water supply in the Koforidua Municipality for a long time. He expressed the hope that the successful execution of the project would improve access to potable water supply in the Municipality, surrounding towns and villages and maximise the health benefits of clean, safe and potable water supply.
Meanwhile, a contract agreement for the rehabilitation and expansion works was signed in Accra between Messrs Denys NV and the Ghana Water Company Limited (GWCL). Mr Samuel Lamptey, Managing Director of GWCL, and Mr Johan Van Wassenhove, Chief Executive Officer of Denys, signed it.
Mrs Cecelia Dapaah, Deputy Minister for Water Resources, Works and Housing, said the project when completed would improve reliability of water supply to Koforidua and beneficiary towns. She said the perennial water shortage during the dry season would also be a thing of the past, allowing second and third cycle institutions to have reliable water supply.
Mr Lamptey said the signing of the contract to boost water supply would enable the country to meet the Millennium Development Goal of access to good drinking water. He said the project aimed at getting a more sustainable source of raw water supply to enhance the current daily production level of 1.2 million gallons to three million gallons.
Mr Van Wassenhove asked for support to enable his company to complete the project on schedule.