Private provision of water supply in unserved areas of Ghana -a case study of Kyekyewere in the Bosomtwe Atwima Kwanwoman District of Ashanti

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Water is very important in the sustenance of life on earth. Water supply is important in the realization of social-economic development. The national urban water supply coverage as at 2003. is 50% and the coverage for rural communities and small towns as at 2001 is 41%. Low access to water and sanitation in Ghana leads to serious public health problems. The lack of access to improve sustainable water supply services to un-served areas was the result of low investment in the water sector, had management, obsolete water infrastructure excessive wastage among others. The Government of Ghana recognizes the private sector as the engine of growth and seeks financial, technical and managerial expertise from the sector to improve efficiency and increase access to water supply. The Study assessed the feasibility (financial, institutional and social) of private sector participation in the provision of water infrastructure in partnership with the community and District Assembly. Kyekyewere in the Bosorntwe Atwima Kwanwoma District of Ashanti Region was used as a case study. The investment cost was obtained by standard engineering methods. The Financial feasibility examined the source of funds, investment cost and tariff for various funding mix. The institutional feasibility examined institutional and legal framework within which the private developer/operator can invest through review of polices and administration of questionnaires. The social feasibility examined the acceptability of Private Sector Participation to the actors, Willingness and Ability to pay by using the Contingent Evaluation Method (CVM) and the 5% income rule respectively. The study revealed that the community - District Assembly(DA) - Private Sector Partnership option with a funding mix of GoG/Donor - 60%, DA - 5%, Community - Private Developer/Operator - 30% is a better option as the user fee is reasonable and comparable to other systems. The tarrif under this option is ¢9770.48m3 (i.e. ¢477.65/18 ltr bucket) which kills within the current small towns tariff range of ¢100 -8ltr bucket. The option has an added advantage of private management which is geared toward efficient and reliable service delivery. Cost water can further be reduced by phasing the water supply project, reducing the percentage of capital investment cost (from 30% - say 20%) to be contributed by the private developer/operator and by obtaining low interest or concessional loans for the execution of the project. institutionally, the policy and legal framework allows for Private Sector Participation in water delivery. Though incomes are low in the community 57.7% of’ those interviewed are willing to pay for improved water delivery services and all social actors (Community, Community Water and Sanitation Agency. Ghana Water Company Limited, District Assembly) find the Private Sector Participation For water delivery acceptable.
A thesis submitted to the Board Of Post Graduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the Award of the degree of Master of Science in Water Supply and Environmental Sanitation, 2005