$235m judgment debt: GWJN calls for full disclosure and independent review of Teshie-Nungua project
According to them, what makes the present situation troubling is that the warning signs have been there for years.
The Ghana Water Justice Network (GWJN) has expressed deep concern over a US$235 million judgment debt owed to Ghana, which is due to Befesa Desalination Developments Ghana Limited. This debt stems from the Teshie-Nungua Desalination Plant and the Water Purchase Agreement between Ghana Water Company Limited and Befesa. The GWJN argues that this judgment raises critical questions about the ultimate cost bearers when water privatization projects fail.
The organization emphasizes that Ghanaians deserve to understand how the situation unfolded. They point out that multiple organizations, including the Teshie Concerned Citizens Association, Integrated Social Development Centre (ISODEC), Water Citizens, and the Public Utility Workers Union (PUWU), had raised concerns about the project's financial viability and potential implications for years.
Despite these warnings, the authorities proceeded with the project, stemming from an unsolicited proposal, which adds to the controversy. The GWJN calls for full disclosure of all contractual and financial arrangements related to the project, including the Water Purchase Agreement, amendments, renegotiations, the State Guarantee, and the arbitration findings.
They advocate for an independent, public-interest review to determine what went wrong, identify any institutional failures, and ensure the public interest was protected. The organization firmly believes that the financial repercussions of this Public-Private Partnership (PPP) failure should not be transferred to ordinary citizens through increased water tariffs, especially as many households are already burdened with high tariffs.
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