Home | News | Ghana Water begs for tariff increase; produces 220 gallons at ¢8; sells it for ¢1.70

Ghana Water begs for tariff increase; produces 220 gallons at ¢8; sells it for ¢1.70

The Ghana Water Company is pleading with Ghanaians to accept a 120% tariff hike.

The company says it cannot continue producing 220 gallons of water at a cost of GH¢8 and be forced to sell it at GH¢1.70.

According to the Communications Manager for the state-owned Company, Stanley Martey, Ghana Water Company is also losing 42% of water produced to illegal connection.

The tariff increase is “long overdue”, Stanley Martey told Joy Super Morning Show host Nhyira Addo on Wednesday.

He argued that selling water at GH¢1.70 is making the vision of the company “useless”.

The Company wants to be “a world class utility company delivering quality and acceptable services based on our distinctive competence and best practices in the water industry”.

He said the company has been encouraged to contract loans to improve access to water. In the past eight months, about 10 projects have been commissioned by President Mahama, he said.

These projects have shot up access to water from 64% to 77%, Stanley Martey noted. By 2016, nine out of ten customers will have water, he was optimistic.

“For us we are proving that we are serving consumers better” the PRO observed and asked that it is time for Ghanaians to “reciprocate a bit more” by paying an increase in 120% for water.

The increase is important to help pay off huge loans the company has contracted to build treatment plants.

According to Stanly Martey, a treatment plant costs at least $300million and takes four years to build.

If the GH¢1.70 tariff persists then “are we going to save, maintain the system, make some profit keep a very good balance sheet?” Mr. Martey wondered.

The PRO is also predicting that the increase will not be the last time the company will ask for adjustments.

He explained that 120% will push the selling price of water from GH¢1.70 to GH¢4 which still does not cover the GH¢8 production cost.

“It will not make us to even breakeven but at least it will support us to sustain the progress that we have now and then gradually we will be asking for more”.

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