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Aqua Vitens contract stays: Performance review underway, says Minister |
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Government is conducting a mid-term review of the management contract between it and operators of Ghana Water, Aqua Vitens Rand Limited. |
Water Resources Minister Abubakar Siddique Boniface said, at a news conference in Accra, that the mid term review will examine the performance of Aqua Vitens Rand since taking over the operations of Ghana Water but dismissed calls for the abrogation of the contract.
"Yes I have called for a mid term review of the management contract of Aqua Vitens and our Director to assess their performance, but it's too premature to call for the cancellation of the contract”, the Minister told the packed hall of journalists who had assembled to know government's action to the acute water shortage in Accra and other parts of the country.
Though the Minister did not spell out any punitive action on Aqua Vitens Rand if found to be underperforming or reneging on the execution of parts of the contract, it is believed that government would not renew the contract when it expires in 2011.
“Let’s wait for the mid term review and see where they have performed and where they have underperformed and move on from there”, the Minister, flanked by his colleague at the Ministry Cecilia Abena Dapaah told insistent journalists whose leading questions were tilted towards contract abrogation.
Aqua Vitens Rand, which is a joint Dutch and South African company responsible for the distribution and management of Ghana Water have come under fire in recent times with some civil society organisations and other pressure groups calling for the termination of the management contract due to the acute water shortage in the Accra-Tema areas and other parts of the country.
But Alhaji Siddique Boniface said that is not possible now because Aqua Vitens Rand has a contract to execute, which cannot be abrogated immediately because of the current problem.
According to the Minister, abrogating the contract has international dimensions, which would diminish the country’s credibility in international circles.
Managing Director of Aqua Vitens Rand, Andrew Barber supported the Minister’s call for a mid term review to assess the performance of the company.
But in the face of the high public bashing, management of the company has touted some progress it has achieved since taking over the management of Ghana Water.
A release distributed to journalists at the end of the news conference shows that revenue collection by Aqua Vitens Rand, grew in 2007 by 20 percent over the previous year, from GH¢51.6 million to GH¢61.4 million. Billings were also up by almost 25 percent, from GH¢56 million in 2006 to nearly GH¢ 69 million.
The growth in revenue collection was due partly to a tariff increase in 2007, and also to the company’s success in identifying and billing commercial users who were previously paying domestic tariffs.
AVRL has established Loss Control teams to educate the public and reduce illegal water - related activities. The actual volume of water sold also grew by a modest four percent, contributing to the growth in revenue collection.
The revenues are being used to pay for operations, provide transport, rehabilitate and repair plants and equipment, improve the work environment and computerise internal communication facilities.
Staff are also receiving training in several critical areas. In 2007, AVRL staff received an average of 3.3 days of training each. AVRL employs over 2,800 staff seconded from Ghana Water Company, some of whom had not received any training in 25 years.
Most importantly, what remains of the money is transferred to GWCL for their investment needs.
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