The Minister-Designate for Works, Housing, and Water Resources, Kenneth Adjei, has stated that he will engage stakeholders before making any decisions regarding the potential privatization of the Ghana Water Company Limited (GWCL).
Speaking during his vetting before the Appointments Committee of Parliament, Adjei was questioned by Patrick Yaw Boamah, a member of the committee, on whether he would consider privatizing GWCL to address its financial and operational challenges.
In response, Adjei said, “I will consult stakeholders. We will have a stakeholders meeting and then we will decide on that.”
Boamah, in his inquiry, outlined the financial difficulties facing GWCL, noting that the company has over six billion Ghana cedis on its books due to loans contracted by the government on its behalf. He emphasized that this financial burden makes it challenging for GWCL to enter into partnerships or secure financing for the replacement of obsolete pumps, maintenance of pipelines, and expansion of services.
He also highlighted concerns regarding the Teshi Desalination Plant, which is currently entangled in an arbitration process involving Abengwa and other partners.
Drawing comparisons with other countries, Boamah questioned whether Ghana should continue to rely solely on GWCL for urban water supply, while the Community Water and Sanitation Agency handles rural water supply. He cited the existence of multiple utility companies in the UK (Thames Water) and South Africa (Rand Water) as examples of diversified water supply models.
The government has already announced plans to privatize the Electricity Company of Ghana (ECG), raising further debate on whether a similar approach should be taken with GWCL.
