Bidding for water privatisation opens March 2003

Bidding for the contract of the much-debated private sector involvement in Ghana's water sector would be opened March next year, the Minister for Works and Housing, Mr. Yaw Barimah, (MP) announced on Wednesday.

He said at present, government was evaluating the bidding document after which parliament's approval would be sought for the pre-qualification and lease of facilities to be considered.

Speaking at a day's workshop organised by the Consumers Association of Ghana (CAG) and the Water Sector Restructuring Secretariat (WSRS) on reforms in the sector, the Minister reiterated government's commitment to ensure that a greater population of the people have access to reliable water supply at affordable prices.

"It is not in the interest of government that the consumer pays much more than he can afford. "Government has made it clear that it is not the Private Operator who will determine the price, but that the Public Utilities Regulatory Commission would be responsible in consultation with stakeholders," Mr. Barimah said.

He said government's estimated 400 million-dollar investment in the privatisation process as against 130 million dollars by the private operator, would be mainly funded by donor support. “This, we have to do by gaining greater donor confidence".

Touching on opposition to private sector involvement in the sector, Mr. Barimah said there has been some element of hypocrisy in the whole issue. He mentioned the Trades Union Congress (TUC) as one of the parties that opposed privatisation, "but yet they are operating a business of water by engaging in water distribution, making profits ".

Why can't they offer it to consumers free of charge? he asked. Mr Barimah said the important thing was how best to ensure that the 41 per cent of the population who do not have access to potable water have water and how even to sustain the 59 per cent.

Mr. Kwamena Longdon of the WSRS, who gave an overview of the work done so far by government said when the privatisation takes off, tariffs would be stable. He said there would be equity in the distribution and cost of water as well as social connections and lifeline tariffs for the poor.

Dr K.B. Asante, a retired diplomat, who chaired the workshop, urged stakeholders in the water sector and Ghanaians as a whole to have the confidence that the process would work though he does not believe that previous reforms in the sector failed on government inability to run the sector.

"It was because the wrong people were put there to work. Let us not forget that the private operator wants returns and would not put its money in a bad venture."

Questions that were asked, mainly centred on affordability, reliability and access of the service to the consumer.