Government allocates GH¢694 million to settle GWCL debts

Ghanaian

The Ghanaian government has disbursed GH¢694 million to the Ghana Water Company Limited (GWCL) to settle debts and cover expenditures up to August 2023.

Out of this amount, GH¢100 million will be directed towards settling water bills owed by some senior high schools in the country.

Dr. Clifford Braimah, the Managing Director of GWCL, disclosed this information in an

Read full articleinterview with the Daily Graphic, highlighting that there are specific arrangements with the government for payment modalities. The government's payment will be used to clear both its indebtedness to GWCL and outstanding water bills of some senior high schools.

Government institutions reportedly owe the GWCL about GH¢350 million, and part of the funds received will be utilised to clear the company's electricity bills. Dr. Braimah mentioned ongoing efforts through a nationwide revenue mobilisation exercise to reduce arrears, noting that arrears have come down to about GH¢254 million.

Despite the reduction, challenges persist in collecting outstanding amounts, especially from facilities that have relocated. Dr. Braimah cited instances like bungalows in Wa, Upper West Region, which were pulled down for hospital construction, making it difficult to trace and collect outstanding bills.

Regarding water projects, Dr. Braimah explained that while projects in Keta, Wenchi, and Sekondi-Takoradi are still running due to alternative funding sources, projects in Tamale, Damango, and Sunyani, dependent on external commercial banks, have been halted.

He also highlighted the continued challenge of turbidity in water bodies caused by illegal mining (galamsey) activities, emphasising that it remains a significant obstacle to their operations.