Investment cost of small town water supply schemes in the Greater Accra Region

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Ghana in line with the world community has committed itself to meet the water component of the MDG target. The low water coverage (59% urban in 2008 and 54.86% rural in 2007) suggests the need for more investments in water supply provision. Meanwhile there is lack of disaggregated investment cost dataand the understanding of the key factors that influence costs especially of Small Town Water Supply Schemes (STWSSs). The objective of this study is to determine the investment cost of STWSSs and identify key factors that influence cost to help inform planning and decision-making. The study was based on completed STWSSs (7 systems) investment cost in the Greater Accra region. The investment cost data excluding programme cost were obtained from payment certificates, bill of quantities, financial contract management forms and contract commitment reports. The investment cost of the various water schemes were adjusted for inflation using the Prime Building Cost Index (PBCI) from the Ghana Statistical Service. Interviews with key informants were conducted for the information on the key factors that influence investment cost. The effects of these factors were examined on the seven « water schemes. The results indicated that investment cost of all the water schemes ranged between 58 and 151 GH<t per capita for the year 2008 as the base year. Cost adjustments with the PBCI were higher than the general inflation. The key factors identified to influence the investment cost of the water schemes in this study were the scale or scope of the schemes; inflation rates; and delays associated with water schemes' construction. Although hydrogeological conditions of a project area could be identified as a key factor but did not show to influence significantly the investment cost in Greater Accra region.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the degree of Master of Science