Mahama Water Contract 'Defies Common Sense'

Staff of Ghana Water Company Limited have demanded investigations into a public-private partnership in the Teshie Desalination plant project which causes a monthly loss of ¢6m.

The GWCL agreement with Befessa is nothing short of 'robbing Peter to pay Paul', the workers said in a statement signed by General Secretary of the Public Utilities Workers Union, Michael Nyantakyi.

Revealing details of the partnership, the PUWU says GWCL buys desalinated water from Befessa at ¢6.50 per cubic meter but sells it to consumers at ¢1.50.

The GWCL therefore loses 5cedis per cubic meter. It also suffers forex losses because it buys the invoice amount in dollars and sells it in cedis, the statement said.

GWCL also pays the electricity bills piled up by Befessa. This comes to ¢3m per month.

Since the Desalination plant began operating in February 2015, GWCL debts have been cracking up very rapidly.

There is a $7.2m debt to be cleared after GWCL struggled to pay of $12.9m

Fuming at the situation, Michael Adumatta Nyantakyi said in the statement, the contract defies common sense.

They believe there was a giant conspiracy between public officials and the private entity because the terms of the contract has left GWCL in a desperate struggle to stay afloat.

PUWU indicated that the terms of the contract has also left the country short changed.

Parliament ratified a US$110 million loan facility to construct the plant under a Water Purchase Agreement between the GWCL and the BEFESA Desalination Development Ghana.

It is a Build, Own, Operate And Transfer (BOOT) contract which is to last for 25 years.

Read full statement

Story by Ghana|myjoyonline.com