Government owes Ghana Water Company GHC459m - Management tells Works and Housing Minister

Management of the Ghana Water Company Limited (GWCL) has said the government owes the company GH¢459 million as of September 2026, warning that the outstanding debt is putting significant pressure on its finances and operations.

The disclosure was made during a working visit by the Minister for Works and Housing, Ahmed Ibrahim, to the company, where management outlined some of the challenges affecting water production and distribution across the country.

The Chief Manager for Corporate Planning, Monitoring and Evaluation, Michael Klutse, said the company was also grappling with water theft and the impact of illegal mining activities on its operations.

He indicated that illegal mining continued to pose a threat to water production, with the practice reportedly spreading to the Upper East Region.

Briefing the Minister, Mr Klutse disclosed that only 85 of the country’s 110 water systems were currently operational, serving more than 1.033 million customers.

He said the company was taking steps to expand its operational capacity and improve service delivery, including replacing old pipelines in various parts of the country.

The interventions, according to management, are aimed at improving the efficiency of the water distribution network and helping the company meet the growing demand for potable water.

However, the company continues to face operational and financial challenges, including water theft and the outstanding government debt.

Management says these difficulties are affecting its ability to operate efficiently while meeting the water needs of its customers.

Mr Klutse also highlighted water theft as a major concern, explaining that the practice undermines the company’s revenue generation efforts.

The company is expected to rely on revenue from water supplied to customers to support its operations, maintain infrastructure and undertake expansion projects.

Unpaid bills and water theft can therefore place additional pressure on its finances.

Illegal mining, commonly known as galamsey, is another concern for the company because of its impact on water bodies used for water production.

The reported spread of illegal mining activities to the Upper East Region adds to concerns about protecting water sources and sustaining the supply of treated water to communities.

In response to the concerns raised by management, the Minister urged the company to identify measures to recover revenue losses and strengthen its financial position.

He also called for improvements in the deployment of smart metering technology as part of efforts to address water theft and improve revenue collection.

The visit provided an opportunity for management to brief the Minister on the operational challenges confronting the company and measures being pursued to improve service delivery.

The Minister later visited the Tema Development Corporation (TDC), where discussions focused on land ownership, land administration and affordable housing.

During the engagement, the Managing Director of TDC disclosed that land leases held by several agencies within the Tema metropolis, including the Tema Oil Refinery (TOR) and the Volta Aluminium Company (VALCO), had expired and had not been renewed.

The disclosure raised issues concerning the status of the leases and the need for the relevant agencies to address their land tenure arrangements.

The visit formed part of the Minister’s engagements with institutions under his portfolio to assess their operations and discuss issues affecting their performance.

By Joseph Armstrong Gold-Alorgbey