The World Bank Board of Executive Directors Tuesday approved an International Development Association (IDA) credit of 103 million US dollar to assist Ghana in the reform of its urban water sector to provide potable water to a greater number of urban dwellers in the country.
The Urban Water Project will assist the Ghana Water Company Limited in the effective management of its urban water systems, rehabilitate existing water treatment and transmission facilities and expand distribution networks.
– The credit will assist in improving the reliability and financial viability of urban water utilities, provide opportunities for public-private partnerships, expand access to potable water for the urban poor and significantly increase the number of low-income households connected to the piped water network, said Alexander McPhail, the World Banks Task Team Leader for the project.
Only 10,3 million (51 percent) of Ghanas 20 million inhabitants are estimated to have access to improved water supply. In the countrys urban areas, comprising about 8,4 million inhabitants, about 61 percent of the population has access.
The first component of the project – Network Expansion and Rehabilitation – will focus on increasing the amount of bulk water for distribution in Ghanas urban centers and in extending water supply services to low income areas.
The physical works, to be carried out by Ghana Water Company Limited, the public utility, will cost 91,8 million US dollar, representing 73 percent of the project
Public-Private Partnership Development will be a key objective of the second component, which aims at improving customer satisfaction by engaging a private sector operator in a management contract to operate Ghana Water Company Limiteds water systems throughout the country for five years. The Private Sector Participation component forms 6 percent of the project.
A third component of the project, focusing on Capacity Building and Project Management, will focus on training and in the pursuit of sector reform aspects of urban water supply, including the need to adopt concrete policies and take actions that would effectively increase the number of low income household connections to the piped water networks.
Institutions that will benefit in this component, on which 7,7 million dollar will be disbursed, include the public utility, the sector ministry and the national independent regulator, Public Utilities Regulatory Commission, which has the responsibility for initiating pro-poor policies.
Another donor participating in the project is the Nordic Development Fund that will provide an additional 5 million dollar. The Government of Ghana will provide an extra 12 million dollar to the project.
The credit is on standard International Development Association (IDA) terms, with a commitment fee of 0,35 percent and a service charge of 0,75 percent. The credits period of maturity is 40 years, including a 10-year period of grace.
For more information on the World Banks work in sub-Saharan Africa visit www.worldbank.org/afr
For more information on the World Banks work in Ghana visit: www.worldbank.org/afr/gh
