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Business News of Monday, 19 October 2009

Source: GNA

Minister: No decision yet on Aqua Vitens -GWCL rumpus

Sunyani, Oct. 19, GNA - The Ministry of Water Resources, Works and Housing has constituted a committee to review the management contract between Ghana Water Company Limited (GWCL) and Aqua Vitens Rand Limited (AVRL). The review exercise was prompted by the problems hindering water delivery and the implementation of the 80 million- dollar World Bank sponsored water project implementation between GWCL and AVRL. Mr Albert Abongo, the sector Minister who dropped the hint in an interview with the Ghana News Agency, said the work of the committee would inform government about the steps to take, to improve the serious challenges with water delivery, especially in the urban areas, where the utility is critical for industrial growth and improved standard of living. He said the misunderstanding between the AVRL and the GWCL about their respective responsibilities in regard to water operations, revenue management and maintenance of systems was having a debilitating effect on water.

Mr Abongo said government was not pleased with the performance of the expatriate management operator, AVRL, which was contracted by the previous government to infuse modern management practices in the operations of GWCL. He said it was too early for recommendation for the termination of the contract since informed analysis of the situation had not been done. Spelling out the mandate of the review committee, Mr Abongo said its mission was to review the contract between the two entities and areas of difficulty.

Mr Abongo said a steering committee to be chaired by him, would help to address inefficiencies that would be identified by the review committee. He impressed on the Management and Staff of GWCL to mend their old habits to overcome their corporate financial difficulties. Answering a question as to whether the public should expect a shake-up in the management of GWCL, Mr Abongo said a change in attitude rather than a massive clean-up of personnel would reverse problems facing the company. He asked the GWCL to tackle the diversion of company property by personnel for their personal use, which he said remained a major drawback on the operations of the company. Mr Abongo said some staff of GWCL also connived with the public to engage in illegal connections of water, which tend to deprive the company of revenue.