Cabinet has approved the merger of Ghana Water Company Limited (GWCL) and the Ghana Urban Water Company Limited (GUWCL).

According to Information and Media Relations Minister, Mahama Ayariga, the merger is to enhance efficient water production and distribution. He was speaking to journalists at the Flagstaff House on Friday June 28, 2013.

Workers of the Ghana Water Company Ltd (GWCL), a couple of weeks ago, gave the government a two-week ultimatum to merge the operations of the Ghana Urban Water Ltd (GUWL) with the GWCL else they would lay down their tools.

They argued the existence of the two entities amounts to a duplication of functions and a drain on the companies’ resources.

The workers issued the ultimatum on Monday, when they staged a demonstration at the premises of the GUWL.