Ghana’s desalination lesson: A water project must work on paper and at the tap

Ghana’s desalination project underscores the critical importance of thorough planning and execution in water supply initiatives. The Teshie-Nungua seawater desalination project, initially conceived as a public-private partnership (PPP), aimed to augment water access for Teshie-Nungua and surrounding regions. The project's design included a PPP framework, where a private developer would finance and operate the plant, selling treated water to the Ghana Water Company Limited (GWCL).

Despite the initial promise of mobilizing private capital, the research conducted for this study reveals that the success of such projects hinges on meticulous preparation and sustained oversight. The findings of this research underscore that the financial viability of a water project extends far beyond the initial capital investment.

Critical to the project's sustainability were issues related to due diligence, financial appraisal, monitoring, and coordination among public institutions. The study identified significant gaps in these areas, highlighting the difficulties that arose from the contracting authority's limited capacity to independently assess complex proposals.

The purchase price for treated water was US$1.32 per cubic meter, with a capacity charge of approximately US$1.4 million monthly. These figures, while historical, illustrate the financial strain a project can place on a utility when contractual payments exceed realistic revenue recovery. Beyond financial considerations, the project's technical aspects demanded rigorous scrutiny.

Energy consumption, treatment processes, and the distribution network's capacity required thorough assessment before approval. This scrutiny ensures that the project remains financially viable over its lifecycle. Additionally, the research highlighted the importance of balancing technical capacity with community needs. While residents noted improvements in water access and associated benefits such as better sanitation, concerns about interruptions, affordability, distribution infrastructure, and water quality persisted.

These concerns necessitate transparent reporting and verification of water quality to ensure that the project meets the applicable standards. The success of a water project ultimately rests on its ability to deliver safe, reliable, and affordable water to the consumers it serves. The research emphasizes that consumer feedback is integral to this process.

Establishing clear service benchmarks, accessible complaint channels, and regular public reporting are essential for early problem identification. These measures ensure that the project remains responsive to community needs. For Ghana and other nations facing similar infrastructure challenges, the research outlines four safeguards to ensure the sustainability and success of water PPPs.

Firstly, obtaining independent technical, financial, and legal assessments before project approval is crucial. Secondly, contracting parties should rigorously test affordability under various challenging conditions. Thirdly, agreements must set clear service standards and practical dispute resolution procedures. Lastly, ministries, utilities, and regulators must possess the necessary expertise and authority to monitor performance throughout the project's lifecycle.

In summary, the success of Ghana’s desalination project, and similar water PPPs worldwide, depends on the balance between private investment and public oversight. While partnerships can mobilize capital, the public sector retains the ultimate responsibility for ensuring that the water supply remains sustainable, affordable, and of high quality.

The central measure of success for such projects must be the provision of safe, reliable, and affordable water directly to the communities that were intended to benefit from them.