The Minister, Kofi Adda, and management of GWCL, are expected to brief the Committee on the water situation in the country, and also outline plans put in place to address the problem.

[contextly_sidebar id=”vAaopnhk89mhh5gNn1ypD3unxePxu2Hz”]The company cited the dry season and the pollution of the country’s water bodies as the cause of the water shortage.

The Chairman of the Works and Housing Committee of Parliament, Nana Amoako, speaking to Citi News ahead of the meeting, indicated that all the Committee is seeking was disclosure on the real state of affairs.

“We want to know from them the measures they have put in place… and what is causing this water shortage. We want to really find out from them because sometimes, we have to really hear from their side what is really happening over there.”

Late in January, GWCL announced that water supply in most parts of the country will be rationed to ensure equitable distribution.

According to the company, it was experiencing some challenges with water supply in Accra and most parts of the country due to the onset of the dry season.

The situation has led to intermittent water supply in most cities and towns in the country.

A statement released by the management of GWCL advised the general public to be measured in their consumption of water, while the Water Company addresses the challenges.

“It must be emphasized that during this season, a number of consumers resort to the use of treated water for keeping lawns green, for commercial washing of vehicles etc. The dry season is on and consumers with greater dependence on rainwater have also compounded the problem by taking to treated water use. These practices ease the pressures in the pipelines thereby causing low pressure and no flow in some areas, especially areas located in high elevations,” GWCL also explained in the statement.

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By: Philip Nii Lartey/citifmonline.com/Ghana

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“It has been shut down since [January 1, 2018], to enable us go in to renegotiate and whatever the outcome of the renegotiation is, that will be implemented,” the Head of Communications at the Ghana Water Company Limited, Stanley Martey confirmed to Citi News.

[contextly_sidebar id=”NtYX2MaxDy3bqLYM6N3fHD6sP9J3ggr1″]Water will be supplied to the people of Teshie and its environs from the Tema and Accra booster stations during the period.

“Hence, instead of receiving water supply seven days in a week, it is going to be between three and four days in a week,” Mr. Martey noted.

Mr. Martey did not disclose the terms of the negotiations, but he reiterated concerns previously voiced by GWCL with respect to the financial toll brought on by the plant.

He said the plant was “having a negative impact on the finances of the Ghana Water Company Limited. It is infecting our other investments as well, so we are hoping that we will do a renegotiation and soften the contractual agreement so that all parties will be satisfied.

Background

In 2011, the Government of Ghana awarded a contract to Befesa Desalination Development Ghana for the establishment of the sea water treatment plant to produce clean water, which will be channeled into the pipelines of GWCL.

Messrs Befesa Limited, an engineering firm, was contracted by the government to build the desalination plant, operate to defray its cost, and hand over to the GWCL after 25 years.

The project was executed by Abengoa, a Spanish company, and Sojitz Corporation, Japan’s largest importer of rare earth metals.

The two hold a 94% equity in the project. The plant was designed, constructed and is being operated by Befesa Desalination Developments Ghana, a joint venture of Abengoa Water Investments Ghana, Daye Water Investment (Ghana), and their local partner Hydrocol.

A consolidation of all the costs of the plants culminates in GWCL buying the water from the plant at about GHc 6.5 per cubic meter, and selling at the regulated Public Utilities Regulatory Commission rate of about GHc 1.5 per cubic meter.

This arrangement meant that, the GWCL is said to be losing about GHc5:00 for every cubic meter of water sold from the Teshie Desalination Plant.

Citi News‘ checks indicate that the GWCL makes payments of GHc 8 million a month to the financiers of the project, although it makes only GHc 2 million by supplying treated water from the plant.

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By: Caleb Kudah/citifmonline.com/Ghana

The post Teshie desalination plant shut down for contract renegotiation appeared first on Citi 97.3 FM - Relevant Radio. Always.

A letter from the Presidency urged the GWCL Board Chairman to “take steps to have the Board of Directors regularize the appointment.

The GWCL was recently the subject of some tensions over the supposed proposal to appoint a third Deputy Managing Director in charge of Special Projects.

The Public Utilities Workers Union (PUWU) argued that the appointment was needless and a duplication of roles.

PUWU said the utility company should instead be taking strategic steps to “reduce the bureaucratic layers at the top.”

The company currently has a Managing Director, a Deputy Managing Director for Operations, a Deputy Managing Director for Finance and Administration, a Chief Manager for Operations, a Chief Manager for Water Resources a Chief Manager for Projects, Planning & Development and Manager for Projects.

But the Board Chairman of the Company, Alexander Afenyo Markin, on Eyewitness News on Citi FM, offered tangible reasons why the appointment was necessary, and does not constitute a duplication of roles.

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post Nana Addo nominates John Mbro as new Deputy MD for GWCL appeared first on Citi 97.3 FM - Relevant Radio. Always.

Their demand comes regardless of a caution from operators of the water plant, Hydrocol, that the said termination will cost government about US $ 123 million.

[contextly_sidebar id=”iHz56Ja2MmnFVgRghV2mMU9PgGw2SWVQ”]The Deputy General Secretary of PUWU, Richard Nyaaba, who made the demand on behalf of the Union on Eyewitness News, said their demands had become necessary, given what it describes as the “heavy financial burden” it is places on the GWCL.

“If we do not take care, that plant will run down the Ghana Water Company and it cannot perform its mandate of supplying others with water,” argued Mr. Nyaaba.

Mr. Nyaaba in defending his call for termination, also pointed out that the plant when closed down will only affect residents of Teshie who have been the main beneficiaries of this project and not Ghanaians as a whole.

PUWU’s call came hours after they called for a thorough investigation into the various roles played by public officials who negotiated the agreement for the construction of the plant.

PUWU had argued that the said project had “seriously weakened the capacity of GWCL to deliver on its mandate.”

Meanwhile, the GWCL has indicated that it is in talks with government to decide on the way forward.

The Chief Executive Officer of GWCL who made this revelation on Eyewitness News , Clifford Braimah said: “Government is working on it. We have series of meetings, series of interactions and then we are getting into the conclusion stages so we need some time to finalise whatever we are doing.”

“It is a project for the Republic of Ghana. It is a PPP project between the government of Ghana and the people who promoted the project. It went through Cabinet to Parliament and so it is a national project. If there is going to be anything, we have to go through due process to take any decision.”

In 2011, the Government of Ghana awarded a contract to Befesa Desalination Development Ghana for the establishment of the sea water treatment plant to produce clean water, which will be channeled into the pipelines of GWCL.

Messrs Befesa Limited, an engineering firm, was contracted by the government to build the desalination plant, operate to defray its cost, and hand over to the GWCL after 25 years.

The project was executed by Abengoa, a Spanish company, and Sojitz Corporation, Japan’s largest importer of rare earth metals.

The two hold a 94% equity in the project. The plant was designed, constructed and is being operated by Befesa Desalination Developments Ghana, a joint venture of Abengoa Water Investments Ghana, Daye Water Investment (Ghana), and their local partner Hydrocol.

Meanwhile, the operators of the Teshie Desalination Plant, Hydrocol limited, has blamed the woes of the plant on what it called the Ghana Water Company Limited’s (GWCL) failings in revenue collection.

Poor revenue collection cause of desalination plant woes – Operators

Also speaking on Eyewitness News, the CEO of Hydrocol limited, Henry Ofori, insisted that “the biggest problem we have with Ghana Water is the non-revenue collection… If they were able to solve that problem, they wouldn’t have a challenge with this plant.

Mr. Ofori said Ghana water is struggling to be independent and self-sustaining because they are used to government always stepping in to bail them out.

“They [GWLC] were never used to having to pay for water. This was all set up by the government for them and for many years, they were selling water and not accounting for what they were selling,” he said.

Terminating contact to cost over $126 million

Mr. Ofori has advised against any move to terminate the contract, as stated by the Public Utility Workers Union.

He said the termination of the contract would “cost Ghana dearly” and even more than the $126 million cost of the plant.

“You have private investors involved in this and there was a lot of money that was borrowed for this project… I can’t give you an exact figure, but it will cost more than $126 million to terminate such a project,” he warned.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

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Speaking to Citi News, the Deputy Minister for Sanitation and Water Resources, Michael Gyato, said it was clear in the government’s mind that “you can’t produce water and sell at a loss.”

[contextly_sidebar id=”okfvYjolAX5LV6By8l0AqSHSuDcvmA9E”]The Ghana Water Company buys water at about GHc 6.5 per cubic metre, but sells at the regulated rate of about GHc 1.5 per cubic meter.

The Ghana Water Company makes payments of GHc 8 million a month to the financiers of the project, although it makes only GHc 2 million by supplying treated water from the plant.

Mr. Gyato noted that “they [Ghana Water Company] distribute the water, but the cost of the production and revenue they get doesn’t match. So if it is a PPP [Private Public Partnership] agreement or whatever, it doesn’t wash, and that is why we are saying that the whole country should look at it and see whether it is feasible.”

In view of the concerns that have been raised, the Minister noted that, a committee has already been constituted in this regard, and it will come out wit recommendations “pretty soon.”

“We have asked our team to look at it and give us recommendations. We are just waiting for them to bring their recommendations and we’ll bring it before cabinet and then the Cabinet will take a decision,” he said.

In April 2015, the $126 million plant was commissioned to process sea water into potable water for consumers in Teshie Nungua and surrounding areas.

It is estimated that it serves 500,000 people with an estimated 13 million gallons or 60,000 cubic meters of water per day.

In 2011, the Government awarded a contract to Befesa Desalination Development Ghana for the establishment of the treatment plant to produce clean water.

This public-private partnership arrangement will see a company, Abengoa, operate the plant for 25 years, and then transfer its management to GWCL.

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By: Marie-Franz Forjoe/Delali Adogla-Bessa/citifmonline.com/Ghana

The post Gov’t reviewing viability of Teshie Desalination plant appeared first on Citi 97.3 FM - Relevant Radio. Always.

Citi News checks indicate that the GWCL makes payments of GHc 8 million a month to the financiers of the project, although it makes only GHc 2 million by supplying treated water from the plant.

The plant has the capacity to desalinate 13 million gallons of seawater a day.

More generally, desalination refers to the removal of salts and minerals from a target substance, as in soil desalination, which is an issue for agriculture.

In this case however, saltwater is desalinated to produce water suitable for human consumption. One by-product of desalination is salt.

In April 2015, the Plant was commissioned by Former President John Mahama to process sea water into potable water for consumers in Teshie Nungua and surrounding areas. It is estimated that it serves 500,000 people with an estimated 13 million gallons or 60,000 cubic meters of water.

The water desalination project falls under the Accra East Region of the Ghana Water Company’s operations.

In 2011, the Government of Ghana awarded a contract to Befesa Desalination Development Ghana for the establishment of the sea water treatment plant to produce clean water, which will be channeled into the pipelines of GWCL.

Messrs Befesa Limited, an engineering firm, was contracted by the government to build the desalination plant, operate to defray its cost, and hand over to the GWCL after 25 years.

The project was executed by Abengoa, a Spanish company, and Sojitz Corporation, Japan’s largest importer of rare earth metals.

The two hold a 94% equity in the project. The plant was designed, constructed and is being operated by Befesa Desalination Developments Ghana, a joint venture of Abengoa Water Investments Ghana, Daye Water Investment (Ghana), and their local partner Hydrocol.

Project cost             

The total cost of the project is known to be $126 million. The project is a Build, Operate, Own and Transfer project spanning a period of 25 years, with a revenue forecast of about $1.3 billion dollars over 25 year period.

This public-private partnership arrangement will see Abengoa operate the plant for 25 years, and then transfer its management to GWCL.

The World Bank’s political risk insurance arm, the Multilateral Investment Guarantee Agency (MIGA), gave an investment guarantee of $179 million dollars to the project. This was to cover the equity investment and shareholder loan of Abengoa and partners, and a non-shareholder loan and interest-rate swap by Standard Bank Group of South Africa.

What are the issues?

Some industry insiders have told Citi News that there was no need to have established the Teshie Water Desalination plant because around the same time, the Kpong Water Treatment plant was being expanded to supply over 40 million gallons of water to the Accra East Region.

It is estimated that at its peak, the Kpong Plant could produce about 80 million gallons of water per day, and that could take care of consumers in the catchment area. The retrofitting of the Kpong Plant cost the taxpayer about $273 million.

However, a strong case was made for the Teshie Desalination plant with reference to the fact that the demand for the catchment area stood at 160 million gallons of water a day. Therefore, the government gave the project the needed push to see its execution.

Resistance to the project

The Teshie and Nungua areas have had water challenges for years and because of inadequate water volumes, the Ghana Water Company Limited for years undertook water rationing.

The introduction of the Desalination plant was to ensure 13 million gallons of water was produced per day, to eliminate rationing and ensure consumers got quality and affordable water.

But a bigger problem persisted for GWCL, which is the off-taker under the Water Purchasing Agreement between Ghana and Befesa.

A consolidation of all the costs meant that, Ghana Water was buying the water at about GHc 6.5 per cubic meter, and selling at the regulated PURC rate of about GHc 1.5 per cubic meter.

This arrangement meant that the GWCL was losing about GHc 5 for every cubic meter of water sold from the Teshie Desalination Plant.

Some of the monthly costs to the Ghana Water Company include an estimated GHc 1.5 million electricity bill.

The GWCL is currently unable to pay the Electricity Company of Ghana, which is also struggling financially.

The other cost element is the capacity charge, and from Citi News’ analysis, the GWCL owes Befesa an amount of about $80 million.

In November 2015, months after the plant started operations, the GWCL revealed to Citi News that it owed Befesa GHc 43m.

Cause for concern

GWCL produces an estimated 190 million gallons of water per day with current demand at 250 million gallons of water per day.

Only 3 of their 89 urban water supply systems are breaking even and making some good money. These three, Barekese, Weija and Kpong, are basically working to subsidize the operations of the others, according to Citi News’ research.

Any Water Purchasing Agreement which burdens the company financially puts a stress on the nation’s water company and may have dire implications.

Possible options for GWCL, Gov’t

The Government of Ghana and the Ghana Water Company have two options out of the many available to them in this situation.

First, they can continue negotiations and reach a sustainable Water Purchasing Agreement with Befesa and their partners, including the World Bank’s MIGA or it can terminate the existing Water Purchasing Agreement and pay-out the debt, the equity or both, based on negotiations.

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By: citifmonline.com/Ghana

The post Ghana Water losing GHc6m monthly to Teshie desalination plant appeared first on Citi 97.3 FM - Relevant Radio. Always.

The pipelines were destroyed during the construction of the road linking Agona Mensakrom and Agona Odoben, which passes through Nkum, under the Ghana Cocoa Board road contracts.

Mr Kwesi Hammah, the Chairman of the Agona Nkum Akwambo Festival Planning Committee, made this known at a durbar of the chiefs and people to climax the Festival at Nkum in the Agona West Municipality.

He expressed regret that several attempts made by the chiefs, opinion leaders and the Youth Association of the town to get the contractor to repair the pipelines have proved futile.

He said the youth leaders and chiefs went to the Ghana Water Company at Agona Swedru to assess the situation but were told that the cost involved was huge.

“It was established that the cost of the damage caused during the construction of the road cannot be paid by the residents,” Mr Hammah said.

The water crisis had compelled teachers, school children and food vendors to fetch water from wells and streams in the area.

Mr Hammah said if care was not taken there may be an outbreak of cholera in the town.

“The dry season will soon be here and schools will re-open next week, but the water crisis has not been solved to ensure the safety of the residents,” he said.

He said Agona Odoben, a few miles from Agona Nkum, was suffering the same crisis and appealed to the Ministry of Sanitation and Water Resources to come to the aid of the residents.

Mr Robert Oduah, the Assemblyman of Nkum Electoral Area, appealed to the Agona West Assembly to help complete a community centre, which had been started by the residents.

He said a development levy of five Ghana Cedis for women and 10 Ghana cedis for men had been imposed on the residents to facilitate the construction of the social centre.

Mr Oduah appealed to the Member of Parliament for Agona West, Mrs Cynthia Morrison, to assist the people of Nkum to build a senior high school and police station to improve on education and reduce insurgent of crimes in the town respectively.

He appealed to the Agona Swedru Divisional Police Patrol to extend the day and night patrols to Nkum to check the rampant theft of fresh cocoa beans and other valuables of residents.

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Source: GNA

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This comes on the back of numerous complaints from some residents in the region that supply of water is cut without explanation from the water supply company.

In an interview with  Citi Breakfast Show  Stanley Martey said there are a few challenges existing on some lines and they are being addressed.

He noted that some residents of Weija continue to experience intermittent power cuts due to ongoing expansion works at pipes linking the area.

“About a month ago we realized that the pipeline going to most of the areas was too small for the population in that area and so what we are doing now is to change the pipeline and lay a bigger one in the area,” he said.

He said the Weija and Kpong treatment plants are currently operating at full capacity and produce enough water that exceeds the level of demand in the region.

“There is enough water in Accra. Now Kpong is working at full capacity, Weija is working. And within the Greater Accra Region, production of water exceeds demand. With the demand figures that we have, we are able to produce more [than that].”

Mr. Stanley Martey also appealed to citizens to reach the company with any information on challenges they face about the supply of water to the area.

“We will urge the general public, if you do not get water within the 24 hours, you need to call the GWCL and inform us immediately. We need to come to the area and identify.”

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By: Jonas Nyabor/citifmonline.com/Ghana

The post We’ve enough water to meet Accra’s demand – GWCL appeared first on Citi 97.3 FM - Relevant Radio. Always.

The plant was shut down in August this year because activities of illegal gold miners had left the natural water bodies not treatable for onward distribution.

[contextly_sidebar id=”wRgghjELrctFx4I5LvALYIeZu2EaFGrD”]According to the Public Relations officer of GWCL, Stanley Martey, the company’s recent assessment showed that there has not been any improvement in the situation as the water remains turbid.

He said, “we have been monitoring the turbidity of the water over the period and unfortunately, it has still not reduced. The turbidity is still very high so the plant is still unable treat the water so we still haven’t opened it.”

“We are still monitoring the quality of the water so that in case there is any improvement, we will put the plant in operation immediately.”

Mr. Martey lamented the water bodies have been badly polluted by the activities of illegal miners, to the extent that it cannot be properly treated.

“We can only add chemicals after we have extracted the water to the treatment plant, so that we could reduce it [the pollution]. Unfortunately, it has gone so high that even when you extract, we are unable to use the chemicals to reduce it.”

‘Kyebi treatment plant affected by galamsey‘

Illegal mining activities over the Birim River has forced the closure of the Kyebi water treatment plant, taking a severe toll on residents who depend on it as their sole source of potable water.

The Member of Parliament for the Abuakwa South constituency in the Eastern Region, Samuel Atta Akyea, in a recent Citi News interview said residents in the area are suffering as a result of the closure, and thus need government’s intervention to provide an alternative source of potable water.

He said, “They should come to the aid of the community by giving them boreholes, as many as they can, given the fact that the President could not prevent the messing up of the River which was helping about a fifth of the Eastern Region.”

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By: Jonas Nyabor/citifmonline.com/Ghana
Follow @jnyabor

The post Kyebi water treatment plant can’t be reopened now – GWCL appeared first on Citi 97.3 FM - Relevant Radio. Always.

Already leading 2-1 from the first leg of the last-16 tie, Barca tore through City as Neymar hit the post early on.
Messi set up Ivan Rakitic, who lobbed Joe Hart for a first-half goal.

City then needed two goals to take it to extra-time but Sergio Aguero’s penalty was saved after he was fouled.
Although that golden opportunity in the 78th minute would have ensured a tense finale at the Nou Camp, it would also have put an unfair slant on the game, which Barca dominated for long periods.

The four-time champions registered 23 attempts toward the City goal but found keeper Hart in superb form as he almost took on a personal duel with Messi and kept the Argentine, and his team-mates, at bay.

City have now failed to reach the quarter-finals in each of their four Champions League campaigns.
As the best paid team in world sport, according to a recent study , it seems like a poor return on that investment.

With a fourth defeat in their last five games, there is also a genuine threat that their season could end up trophy-less. Manuel Pellegrini’s side sit six points behind Premier League leaders Chelsea, who have a game in hand.

The former Villarreal boss admitted this week that he did not feel under pressure despite speculation that he could be sacked at the end of the season.

But after a wonderful exhibition of cute passing and mesmerising dribbling from Messi, there was little either Pellegrini or his team could do to stop the 27-year-old.

From the beginning, he was a menace, whether exchanging one-twos with Andres Iniesta or curling free-kicks with the type of spin a baseball pitcher would have been proud of.

The only thing missing from Messi’s superlative display was a goal.
But after Neymar had hit the post early on after Vincent Kompany was dispossessed on the edge of his own box, Messi turned provider when he found Rakitic with a crossfield pass following a quick counter-attack.

In City’s only notable chance of the first half, James Milner failed to touch in Yaya Toure’s low cross.
Luis Suarez, who scored twice in the first leg, hit the post before the break and there was no let-up after the interval.

Fortunately for City, Hart had a superb night and made 10 saves overall, a record for an English goalkeeper in the Champions League.

As the game entered its last half hour, the visitors did threaten the Barca goal and they were prepared to leave gaps at the back in doing so.

Their chance to change the tie’s complexion was wasted, though, after Aguero was tripped in the penalty area by Gerard Pique.
City’s top scorer stepped up to take the kick himself but Marc-Andre ter Stegen easily saved to his right.

Source: BBC

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