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General News of Monday, 3 March 2008

Source: GNA

Terminate Aqua Vitens' contract-Coalition

Accra, March 3, GNA - The National Coalition Against the Privatisation of Water (NCAP) on Monday called on government to terminate the contract of Aqua Vitens Rand Limited (AVRL), with immediate effect.

This, the Coalition said, was because the company, which operates in Ghana on behalf of the Ghana Water Company Limited (GWCL had failed to ensure improved service delivery in water supply resulting in the recent water shortages in Accra and other parts of the country which attested to its inefficiency.

Addressing a press conference in Accra, Mr. Alhassan Adam, Southern Sector Coordinator of the Coalition said since the AVRL was contracted by government through the World Bank's guidance in 2006, water rationing and rampant cut offs had rather become the order of the day. He said according to the Schedule Four of the contract which spelt out the "Service Standard", the AVRL was expected to within six months produce, maintain water quality and flow rates to meet Ghana Standards Board and Consumer Charter requirements. Mr Adam noted that GWCL was therefore entitled to commence termination process as in Clause 9.2 of the contract if the operator failed to perform the obligations and the failure continued for thirty days, saying the situation had gone beyond the deadline and the action must begin.

According to him, the AVRL also failed to perform in Tanzania in 2003 and as such recent statements being made by the company attributing the crisis to the dry season were not convincing to allow them continue to manage the essential commodity. He said there was more confidence in the GWCL to perform even better if given the opportunity free from external pressures. Mr Adam further asked government to look out for realistic investments to source enough revenue and to open up a debate for consumer contribution of tariffs and ways to revamp the sector. The Coalition also expressed disappointment with the new National Water Policy, saying its vision of promoting private sector participation in investment and management of urban supply to improve overall efficiency seemed to entrench privatization of water. He therefore called on corporate bodies and civil society organizations to support the Coalition to campaign for social justice in the sector. Dr Steve Manteaw, Campaigns Coordinator of the Integrated Social Development Centre (ISODEC), founder of the Coalition also called on Parliament to take up the issue and ensure that the interests of the citizenry were addressed first. 3 March 08