Investigate Operations of Teshie Desalination Water Project-PUWU

The Public Utilities Workers Union (PUWU) is calling on government to conduct a thorough investigation into the operations of the Teshie desalination water project, which was undertaken by the previous administration.

PUWU is suspicious the country may have been short changed by those who negotiated the agreement between Ghana Water Company Ltd and Messrs Befessa, an entity which built the desalination plant.

Per the terms of the agreement, GWCL is required to pay capacity charge of US $1.4million per month to Messrs Befessa.

This charge is payable whether the plant is working or not.

Again GWCL is obliged to pay the electricity bills of the desalination plant which stands at an average of Ghs3million per month.

According to a statement signed by the General Secretary of PUWU Michael Adumatta Nyantakyi and copied to Oman FM "GWCL buys water from the desalination plant at GHC6.50 per cubic meter , however it sells to customers at the PURC approved tariff of GHC1.50.

Therefore for every cubic of water purchased and sold GWCL losses GHC 5.00.In addition, GWCL pays the invoice amount in US Dollars even though it sells the water in Ghana cedis, thereby accumulating more losses as a result of exchange differentials."

"In 2015, GWCL paid to Befessa a total of US $1.8 million leaving an outstanding indebtedness of US$13.9 million. In 2016, even though GWCL was making a net loss of about GHc 7.2 million a month, the Company was compelled to pay Befesa a total of US $ 23.7 million leaving an outstanding indebtedness of US $ 8.1 million.

As at the end of September 2017, GWCL had paid a total of US$ 12.9 million to Befesa leaving an outstanding indebtedness of US$7.2 million. The company continued to make a net negative cashflow of an overage of GHc 6.02 million per month," the statement said.

"These expenditures by GWCL on the desalination plant under the agreement, has left the Company in a precarious position affecting the cash flow and expansion works. There is no doubt that this agreement between GWCL and Messrs Befessa is not only obnoxious but also beat common business sense.

It appears to be a case of a giant conspiracy between foreigners and their local collaborators and public officials, with political influence, to loot the country and share the proceeds among themselves under the guise of a private sector investment or private public collaboration," the statement added.

The Union also called on the Ministry of Finance as a matter of urgency to take appropriate steps to take off ehat it described as albatross hanging around the neck of the Ghana Water Company Ltd to bring it some relief.

Story By: Michael Creg Afful

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