Water Privatization in Ghana - A Holy Cross Response

From Br. Michael Amakyi, csc

Greetings!

Many thanks for your letter on the current discussion going on in Ghana on Water Restructuring. Since I received your letter, we had to review our position on the situation. After taking a second look at the situation, Holy Cross in Ghana re-affirms her earlier position of not signing on to the protest letter of the National Coalition Against Privatisation of Water. We support the Government of Ghana’s initiative. 

Our position comes from taking a critical look at the prevailing situation in the country. We all agree that water is basic to life and should be available to all. Water should be within the reach of everyone. However, the prevailing situation is that water is not available to majority of the people even in the urban areas.  Very few areas have regular supply of water. The rest have to buy water from private individuals (operating at will) at high cost.  It is interesting to know that the areas that have been enjoying the regular supply of water are the residential areas for the rich in the society. They pay the government approved tariffs whilst the poor and the middle class spend about four times that amount in getting water. For some of us during the months of February, March and April, we struggle to get water for our use and for the running of the school. The situation is no different in most places. It is even becoming part of our life pattern. To bring the example home, our Holy Cross Sisters in Kasoa have to buy water throughout the year. The Ghana Water Company Limited over the years has not been able to remedy the situation. The story has always been the same – there is no money to rehabilitate the system. The truth is unfortunately is that water at present is not cheap and also not available.

The Water Sector Restructuring Programme, which was initiated in 1987 looks like a viable option as the way forward. To quote the President of Ghana: ‘Without the injection of funds from the Private Sector, we shall continue to operate the false and unsustainable economy we have been doing since independence, especially in the provision of such basic and vital utilities as water and electricity.’

With the setting up of appropriate Institutions like the Public Utility and Regulatory Commission to regular tariffs and operational performance, the Water Resource Commission to see to the management of the water resources and the Ghana Standards Board to oversee the development of potable water, I believe there will be checks and balances to ensure that the interest of the vast majority of Ghana’s poor are catered for.

Thus far (10 months in power), the Government has given us some grounds to trust some of their decisions, which are all geared towards improving the life of the common Ghanaian. The Government has been open to suggestions from the Integrated Social Development Centre (out of which came the National Coalition) and implemented some of them – the Community Water Management Programme.

What we are asking the Government to do is to be transparent in all the contracts signed with the Private Sector, and that in all the negotiations, the interest of the people of Ghana will reign supreme.

I dare say that it is too early for this present Government to forget how it came into power – through the goodwill of the middle class and the poor who were promised poverty alleviation schemes.

I hope the summary of where we are coming from gives you some idea as to why Holy Cross in Ghana is supportive of the Government's initiative and did not sign on to the petition letter.

Thanks.

In Holy Cross,
Br. Mike Amakyi, csc

From Sr. Esther Entsiwah, csc

Dear Mary,

I have had the chance to talk and read the writings of the two main bodies on the water issue in the Country. These are the Water Sector Restructuring Secretariat (WSRS) who see the need for Ghana to go that direction and the Integrated Social Development Center (ISODEC) an NGO who does not. Each of these groups has good reasons for the stand they have taken.

I have also spoken to a cross section of people. The feeling about the Government’s policy is varied. Many do not understand what is going on but want better services in the water sector. For my part, I support some restructuring for the following reasons:

1. Presently very few people have regular supply of good drinking water because supply cannot meet demand.

2. Many people especially low-income people for years have been and continue to buy water from private tanker owners at very high rate. (Our Sisters in Kasoa buy water every week to fill their tank.)

3. The Ghana Government needs over eight billion cedis to put the water sector in good shape to provide quality service to the people. Sadly our government does not have that money and no financial institution will loan this amount for this purpose. It did not happen in the past and will not happen now.

4. There is also too much waste in the system and somebody must take responsibility to check that.

For this and many more reasons, I will say please do not sign the sign-on request. I do not believe it is a condition being dictated by World Bank or IMF. Much as I appreciate the misgivings of the ISODEC and others I also think the government must be given the chance to take this risk which it believe is aimed at improving the lot of Ghanaians in the water sector.

Hope you and all in the Justice offices are well; regards to them.

Esther