Audio By Carbonatix
Staff of Ghana Water Company Limited have demanded investigations into a public-private partnership in the Teshie Desalination plant project which causes a monthly loss of ¢6m.
The GWCL agreement with Befessa is nothing short of 'robbing Peter to pay Paul', the workers said in a statement signed by General Secretary of the Public Utilities Workers Union, Michael Nyantakyi.
Revealing details of the partnership, the PUWU says GWCL buys desalinated water from Befessa at ¢6.50 per cubic meter but sells it to consumers at ¢1.50.
The GWCL therefore loses 5cedis per cubic meter. It also suffers forex losses because it buys the invoice amount in dollars and sells it in cedis, the statement said.
GWCL also pays the electricity bills piled up by Befessa. This comes to ¢3m per month.
Since the Desalination plant began operating in February 2015, GWCL debts have been cracking up very rapidly.
There is a $7.2m debt to be cleared after GWCL struggled to pay of $12.9m
Fuming at the situation, Michael Adumatta Nyantakyi said in the statement, the contract defies common sense.
They believe there was a giant conspiracy between public officials and the private entity because the terms of the contract has left GWCL in a desperate struggle to stay afloat.
PUWU indicated that the terms of the contract has also left the country short changed.
Parliament ratified a US$110 million loan facility to construct the plant under a Water Purchase Agreement between the GWCL and the BEFESA Desalination Development Ghana.
It is a Build, Own, Operate And Transfer (BOOT) contract which is to last for 25 years.
Read full statement


Latest Stories
-
3rd Republic Bank-JoyNews Habitat Fair Clinic ends on a high note after three days of strong patronage
6 seconds -
Ten climbers missing after avalanche hits Himalayan base camp
37 minutes -
NPP had more permanent fuel relief measures than current GH¢2 diesel cut – Amin Adam
1 hour -
Photos from the 3rd Republic Bank-JoyNews Habitat Fair Clinic
1 hour -
Ethiopia’s army promises restraint amid fears of new civil war
1 hour -
Amin Adam calls for review of fuel taxes as diesel prices remain above GH¢18
2 hours -
World Vision Ghana, Ahafo districts sign MoU for universal WASH coverage
2 hours -
When the gold engine stutters: What Ghana’s Cedi and reserves are telling us about the new economic architecture
3 hours -
Two reportedly die after being trapped in mining pit at Juaboso
3 hours -
Petrosol cleans up Wa Municipal Hospital, to donate medical equipment
3 hours -
‘If NPP was ‘insensitive’ over fuel prices, NDC must accept same description now’ — Amin Adam
3 hours -
KiDi brings the hits to London in sold-out UK headline concert
3 hours -
The last goodbye of Ghanaian shot dead in the US
3 hours -
MCC opens door to Ghana again as MiDA revives development partnership
4 hours -
CSIR moves to turn scientific research into jobs, national growth
4 hours