Nine foreign firms from France, Britain, Sweden and the Netherlands have been short listed to take part in the Private Sector Participation (PSP) programme of the water sector due to come into effect about the middle of next year.
From a field of 28 foreign companies and one Ghana, which entered the bidding fray, the nine would-be partners satisfied the requirements, which included a minimum of ten years experience in water business and payment of US$200 for the bidding document, among others.
The Ghanaian company however, withdrew a day after paying the amount on realisation that it could hardly meet all the requirements for a successful bid.
A financial analyst, at the Water Sector Restructuring Secretariat, David Amoah, said the nine successful companies have been segmented into A-4 and B-5 groupings, making up zones, covering the various regions of the country. The A-4 group comprising Saur (French), Northumbrian (British), Vivendi (French) and International Water (British) will be in charge of the Upper West, Upper East, Northern, Volta and Greater Accra regions.
The rest of the regions, Ashanti, Eastern, Western, Central and Brong Ahafo will be serviced by the B-5 group, made up of Nuon (Dutch), Bi-Water (British), Generale De Zone (French), Skanska (Sweden) and Saur (French).
According to Mr. Amoah, the private sector participation is limited to the 71 large urban water systems while about 130 small urban and rural water supply systems have been transferred to the District assemblies. The latter would therefore not be part of the PSP arrangements.
In defence of the PSP, the financial specialist told the Business and Financial Times that “Our analysis show that when the private operator is in place, the tariff will be lower in the urban water system where he will be operating than that of the public-community managed system.”
This position has been hotly challenged, though by the Integrated Development Centre (ISODEC) which has mounted a campaign against the PSP across the country, calling it a commercialisation venture that will disadvantage the poor and the vulnerable.
Mr. Emmanuel Nkrumah, a water engineer at the water Resources Commission, has, however, expressed shock at ISODEC’s stance, saying ISODEC was initially part of the process and had actually done a number of studies to support the PSP which included the willingness and the ability to pay, carried out on its behalf by London Economics, a London-based firm.
He referred to a document prepared by ISODEC at a stakeholders workshop held in May 1999, which concluded among other things that, “The private sector, when given the chance to participate will provide both local and external contractors to carry out, physical works; hence they must be allowed to operate the system, help mobilise funds and provide maintenance services in future.”
ISODEC has changed from this position because it had joined a worldwide coalition against privatisation, an organisation noted for disrupting IMF and World Bank meetings, for possible financial benefit, Mr. Nkrumah believes.
He urged “discerning” members of the public to ignore ISODEC’s unrealistic crusade, adding that what they say depends upon who is funding them.
The Convention People’s Party (CPP) has also condemned the PSP saying it will burden the already suffering Ghanaian populace. It has threatened to organise a nation-wide protest if government goes ahead with the PSP programme.
