The Management Contract (2006-2011)
Between June 2006 and June 2011 the private operator Aqua Vitens Rand Ltd. (AVRL), a joint venture of the public Dutch company Vitens and the public South African company Rand Water, supports GWCL under a five-year management contract to improve its performance and rehabilitate and extend the infrastructure.
The main objectives of the 5-year management contract were:
- Improving the reliability (pressure and flow rate) and quality of potable water,
- Ensuring the company’s financial sustainability,
- Improving customer service, and
- Providing access to potable water at affordable prices to low income consumers.
The reduction of non-revenue water and was an important means to achieve these objectives.
In March 2008, severe water shortages in Accra were reported, leading the Minister for Water Resources, Works and Housing to review whether AVRL was working in compliance with the management contract. However, he explained that the reason for the shortages were unforeseen power outages at two water treatment plants in Weija and Kpong. According to the Minister, the overall situation would improve notably by the end of 2008 due to several new boreholes and a more stable power supply. In March 2008 the National Coalition Against Privatisation of Water (NCAP) called for the abrogation of the management contract for alleged "lack of performance", especially related to the lack of achievement of “Service Standards” for pressure and flow as determined in Schedule 4 of the contract. The Minister responded by pointing to an upcoming mid-term review.
In early 2011, the Minister of Water Resources, Works and Housing, Alban Bagbin, criticised Aqua Vitens Rand for failing to live up to expectations. Residents complained that they did not receive water and workers protested against "the management style" of the company. The government did not renew the management contract when it expired in June 2011. The Government is evaluating options for the next steps in the reform of the water sector.
Read more about this topic: Water Privatization In Ghana
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