Business News of Thursday, 11 September 2025

Source: www.ghanaweb.com

ISODEC, AWJN oppose 280% proposed water tariff hike by GWCL

The Integrated Social Development Center (ISODEC) and the Africa Water Justice Network (AWJN) have expressed strong opposition to the Ghana Water Company Limited’s (GWCL) proposed 280% water tariff increase, warning that it would disproportionately affect citizens without addressing underlying structural problems.

In a joint statement sighted by GhanaWeb Business, the groups acknowledged the challenges posed by illegal mining also known as 'galamsey', to Ghana’s water supply but cautioned that tariff hikes alone cannot solve the crisis.

“While galamsey is a serious threat, using tariff increments as the main solution to systemic issues is unjust. Citizens should not bear the cost of political mismanagement or exploitative contracts,” the statement said.

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ISODEC and the Africa Water Justice Network (AWJN) highlighted several critical issues undermining the Ghana Water Company Limited’s (GWCL) operations.

They noted that non-revenue water (NRW) has risen from 39.1% in 2020 to 49.9% in 2024, meaning nearly half of treated water is lost through leakages, theft, and poor metering, well above the 23% benchmark for developing countries.

The groups also criticised the Teshie Desalination Plant, describing it as a financial burden on GWCL.

“The plant costs GWCL US$1.4 million monthly in capacity charges, plus GH¢3 million in electricity bills, while water is sold to the public at only GH¢1.50 per cubic metre, compounding financial losses,” the statement said.

Political interference and poor procurement practices were also cited as key challenges to the operations of GWCL.

Furthermore, ISODEC and AWJN warned against GWCL’s use of sachet and tanker water prices to justify tariff hikes.

“Ghanaians rely on sachet and tanker water because GWCL has failed to provide reliable tap water. It is misleading to use these as justification for higher tariffs,” the statement noted.

The groups also described galamsey, or illegal mining, as a national security threat requiring decisive government intervention, rather than a justification for passing costs onto consumers.

In response to these challenges, ISODEC and AWJN recommended urgent reforms before any tariff adjustments.

They called for reducing NRW through pipeline rehabilitation, improved metering, and anti-theft enforcement; renegotiating or terminating the Teshie Desalination contract; establishing a Water Solidarity Fund financed by a 2.5% levy on oil and mining revenues; and strengthening procurement processes with democratic oversight of GWCL contracts.

Most importantly, they emphasised that citizens’ right to water must take precedence over commercial considerations.

“Approving a 280% tariff increase without addressing these structural inefficiencies would be a betrayal of public trust,” the statement concluded.

MA