This is a baseline report conducted on operations of Ghana Water Company Limited (GWCL) in November, 2017 employing technical and financial reports of the Company staff and customers of GWCL in Accra and Tamale through interviews to assess its effectiveness and efficiency over the last six years. Overall, two Districts Accra and Tamale were used for the household survey. The two major cities were carefully picked out taking into account the economic, geographical and social significance that each of them represents and commands in Ghana.
specific performance indicators were carefully assessed and presented in this report including the socio-economic, environmental, technical or operational, financial or commercial factors that influenced the financial sustainability and efficient and effective performance of the public water utility between the year 2011 and 2016. Key performance indicators were assessed employing audited financial and technical reports of the utility. Additionally, other social and environmental factors that influenced the financial viability and sustainability of Ghana Water Company Limited were considered using surveys.
Statistical Package for the Social Sciences (SPSS) was used to perform data entry and analysis of data collected through surveys while Microsoft Office Excel spreadsheet was employed to calculate various key performance indicators (i.e. both financial and operational or technical indicators) of the utility. The results provided is a result of analysis of the household survey and primary data gathered from Eight Hundred (800) respondents in eight selected operational areas in Accra and Tamale. This comprises of customers from slum communities, middle income communities, high income communities and peri-urban communities. . The study revealed that, averagely, GWCL recorded an average of 50 percent non-revenue water during the 6-year period. Collection efficiency for private customers, Ministries, Departments and Agencies (MDAs) fluctuated between 68.1% in 2016 and 102.4% in 2012 resulting in high account receivables with its day’s receivables ratios ranging between 189 days and 288 days. Generally, GWCL had large amounts of funds tied up in receivables. Consequently, the liquidity position of the public utility worsened with its current ratios, less than 1. The Company failed to control its operating expenditure on personnel, chemical and electricity and as a result, posed major managerial and financial challenges to the public utility’s profitability. High inflation and exchange rates have also significantly affected the cost of chemicals and electricity during the period under review leading to high cost of production. Meanwhile, about 57 percent of respondents in both cities indicated personal knowledge of an illegal connection, sometimes as a result of collusion between staff of GWCL colludes and customers
Overwhelmingly, 83.75 percent of respondents indicated their willingness and readiness to use mobile phones to do self-billing while 90% agreed to use the e-payment method to pay their water bill. In addition, 81.85 percent of respondents were eager and willing to pay a token (i.e. 1 percent of their bills) for using the new method of payment. Evidently, the study shows that there is the need to reduce non-revenue water while improving billing and collection in order to ensure the sustainability and viability of Ghana Water Company Limited.