Ghana Water Company

Works and Housing Minister-designate Weighs Privatization of Ghana Water Company

The fate of Ghana Water Company Limited as a public utility entity hangs in the balance as Minister for Works and Housing-designate Kenneth Gilbert Adjei reveals plans to consider privatizing the company if it is approved.

Just like the Electricity Company of Ghana (ECG), the Ghana Water Company Limited (GWCL) is also facing operational challenges. Tasked with the mandate to supply potable water to the population, the operational inefficiencies as well as challenges such as the menace of illegal mining have led to rampant water shortages.

Already, the new government has triggered processes to accommodate the private sector participation in ECG. Sector Minister, John Abdulai Jinapor has set up a technical committee to draft a framework for the process to be considered by the government.

The issues for the privatization of the GWCL came up when Mr. Adjei appeared before the Appointments Committee of Parliament on Tuesday, January 28, 2025. He was asked questions on the subject by Patrick Boamah, a member of the Appointments Committee who previously served as Board Chairman of the Ghana Water Company.

“We have over 30 million people, 33 million, relying on Ghana Water to provide urban water supply, and community water and sanitation agencies providing rural water supply. Will you consider, and it’s very, very important to look at that, the government is saying they are going to privatize ECG. Will you consider, given the situation in which we find ourselves in, to privatize Ghana Water Company Limited?,” Patrick Boamah quizzed.

Responding to the query, the minister-designate Kenneth Gilbert Adjei indicated that when approved as the substantive minister, he will engage all relevant stakeholders to discuss the best course of action for GWCL.

“Mr. Chairman. I will consult stakeholders, we’ll have a stakeholders meeting, and then we will decide on that,” he indicated.

Critics against the privatization of state-owned and controlled utility companies have raised concerns about the impact of such decisions. They believe private sector involvement in critical sectors of the economy such as electricity and water provision can hurt citizens.

The involvement of the private sector means these companies will mainly be driven by profit hence raising prices to the disadvantage of the citizens. However, proponents of privatization argue that the operational inefficiencies leading to technical losses, debt accumulation, erratic supply, and wastage, among others, make it imperative for private sector involvement.

As ECG is already on its way to being privatized, the fate of GWCL hangs in the balance.

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