Ghana Water justifies tariff hike, cites impact of galamsey and obsolete infrastructure

The Ghana Water Company Limited in the Ashanti Region has explained the recent increase in water tariffs. They cited high treatment costs due to illegal mining activities, known as galamsey.

The Public Utilities Regulatory Commission (PURC) announced a 4.02% increase in water tariffs. This change is effective from May 1 for all consumer categories.

Hanson Mensah-Akutteh, the Regional Manager of Ghana Water Company Limited, discussed the reasons for this adjustment. He mentioned high treatment costs and challenges with ageing infrastructure.

In an interview with David Akuetteh on Luv FM in Kumasi, he stressed that the company must meet strict compliance standards. Regardless of water quality, these standards are essential.

Mensah-Akutteh noted that treating polluted water requires importing expensive chemicals. These chemicals are sourced internationally and require foreign capital.

"Most of our revenue goes toward operational costs and fuel," he said. "Our capital costs are hard to cover, and government subsidies limit our ability to charge realistic tariffs."

He added that while the 4.02% increase helps, it does not fully cover treatment costs. "To fully cover expenses, we would need higher tariffs than PURC approved," he explained.

He also mentioned that treatment processes incur higher costs due to unit system dynamics. "The tariff regime depends on resource availability and condition," he added.

When asked about alternative water sources, Mensah-Akutteh confirmed assessments have been made for other options in the region. However, he stated that the Offin River remains the primary source of water for Ashanti.

"The Offin River is crucial for Ashanti's survival," he warned. "If it is not protected, the entire region will face trouble."

Regarding its current state, Mensah-Akutteh revealed that Offin River's water quality has declined from "excellent" to "good." This change indicates increasing pollution levels mainly due to galamsey activities.

"The pollution levels are rising," he cautioned. "If this continues, it could worsen and threaten the region's water supply."