‎ISODEC and the Africa Water Justice Network Respond to GWCL’s Proposed 280% Water Tariff Hike ‎

                      Press Statement

‎The Integrated Social Development Centre (ISODEC) and the Africa Water Justice Network (AWJN) have observed with deep concern the recent proposal by the Ghana Water Company Limited (GWCL) to the Public Utilities Regulatory Commission (PURC) seeking a record 280% increment in water tariffs, citing the rising cost of operations.
‎
‎While we acknowledge the grave challenge that illegal mining (“galamsey”) poses to Ghana’s water resources, we strongly caution against using tariff increments as the sole remedy to what is, in fact, a systemic, multifaceted crisis. Citizens cannot be made to pay for the state’s failure to curb an existential threat to our rivers and ecosystems.
‎
‎Key Issues Needing Attention
‎1. The Teshie Desalination Plant Burden
‎The Teshie Desalination Plant continues to drain GWCL’s coffers.
‎
‎GWCL pays a monthly capacity charge of US$1.4 million to the private operator, plus about GHS 3 million in electricity bills per month (2017 figures).
‎
‎Water from the plant costs GHS 6.50 per cubic metre, yet is sold to the public at a PURC-approved tariff of just GHS 1.50.
‎
‎Payments are made in US dollars but indexed to Ghanaian inflation, compounding exchange losses.
‎
‎This lopsided agreement places an unbearable financial burden on GWCL. Long-term solvency cannot be ensured while such exploitative contracts persist.
‎
‎2. Non-Revenue Water (NRW) on the Rise
‎GWCL’s non-revenue water has worsened, rising from 39.1% in 2020 to 49.9% in 2024, far above the international benchmark of 23% for developing countries and 15% for high-performing utilities.
‎
‎This represents billions of litres of treated water lost annually through leakages, theft, poor metering, and weak data management. Until this is addressed, tariff hikes alone will not solve GWCL’s financial woes.
‎
‎3. Political Interference and Questionable Contracts
‎Political interference and opaque procurement practices continue to undermine GWCL’s finances.
‎
‎A recent example is the GHC 1.3 million monthly internet service contract linked to a former official of the National Signals Bureau.
‎
‎Such non-competitive and wasteful contracts weaken the company’s already precarious finances, diverting funds away from water delivery.
‎
‎4. Misuse of Sachet and Tanker Prices as Benchmarks
‎GWCL’s attempt to justify tariff increases by comparing its rates with sachet water, bottled water, and tanker services is misleading. Ghanaians turn to these alternatives precisely because GWCL has failed to provide reliable, safe, and accessible tap water. Using these prices as benchmarks is untenable.
‎
‎5. Galamsey as a National Security Threat
‎Illegal mining is a national security emergency requiring decisive government intervention. While the devastation is real, the solution lies not in tariff adjustments but in bold policies to safeguard our rivers and ecosystems.
‎
‎Our Recommendations
‎Strengthen Efficiency Before Tariff Adjustments
‎Address NRW, invest in pipeline rehabilitation, metering, data systems, and anti-theft enforcement before passing costs to citizens.
‎
‎Resolve the Teshie Desalination Contract
‎Renegotiate or terminate the exploitative desalination agreement draining GWCL’s finances.
‎
‎Establish a Water Solidarity Fund
‎Dedicate a 2.5% levy on oil and mining revenues to the water sector, similar to the GETFund for education and the NHIL for health.
‎
‎Increase Democratic Oversight and Strengthen Procurement Processes
‎Ensure open competitive bidding, parliamentary oversight, and full transparency in GWCL’s contracts.
‎
‎Prioritise Citizens’ Right to Water
‎PURC must regulate not only on behalf of “customers” but for the public good, safeguarding water as a fundamental human right above commercial interests.
‎
‎Conclusion
‎The crisis facing GWCL and urban water management cannot be reduced to tariff adjustments. To approve a 280% tariff increase without first addressing structural inefficiencies, exploitative contracts, political interference, and the national security threat of galamsey would be grossly unjust and a betrayal of public trust.
‎
‎We therefore urge the PURC to reject GWCL’s tariff request in its current form and instead lead a holistic reform process to secure the long-term sustainability of Ghana’s water sector.
‎
‎Issued by:
‎The Integrated Social Development Centre (ISODEC)
‎The Africa Water Justice Network (AWJN)