Business News of Thursday, 9 June 2016

Source: classfmonline.com

GWCL recoups just half of production cost – Martey

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The Ghana Water Company Limited (GWCL) spends about GHS8 on every cubic metre (1000 litres) of the 200 million gallons of water it treats daily, but sells the same volume at GHS4 to consumers, Head of Communications at GWCL, Mr Stanley Martey has disclosed.

Speaking on Ghana Yensom on Accra100.5fm Thursday June 9, Mr Martey said the company produces water at a loss, with government and the company making up for the shortfall.

He lamented the rising cost of water treatment in the country, a situation he blamed on pollution of rivers from alluvial mining. He said illegal small-scale mining, known locally as ‘galamsey’, which involves the utilisation of chemicals such as mercury and cyanide, had left the compnay needing to spend much more than it did previously on treatment, as the presence of such chemicals has meant incurring extra costs in the purification process.

“But for pollution of rivers, water will be the cheapest [commodity],” he told Chief Jerry Forson on the show, further stating that less money is spent by the firm in the treatment of water from such water bodies as the Volta River than the Pra River, for example.

“That’s why we are still where we are, because all the water we treat we make no profit, we do at a loss,” Mr Martey complained.

He, however, said despite the GWCL finding itself in a financial situation “not palatable enough” to access loans to improve production, it was still “working hand in hand” to ensure things proceeded smoothly.