Tamale, Nov. 14, GNA - The management of the Ghana Water Company Limited (GWCL) is taking proactive measures to address the numerous operational and financial problems facing the company.

Mr Kenneth Baffoe Maison, Chief Manager of GWCL, Ashanti Region, who announced this in Tamale on Friday, said: "Management is firmly committed to tackling the problem of illegal connections, reducing leakages and improving upon revenue collection".

Mr Maison was speaking at the inauguration of the Northern Regional branch of the GWCL Retired Staff Association in Tamale. He said the company owed the Electricity Company of Ghana (ECG) 107.3 billion-cedi as at December 31, 2002 for energy consumed and was also servicing the payment of a three million-pound loan obtained from Barclays Bank.

Mr Maison explained that the loan was for the construction of 13 glass fibre reinforced plastic water reservoirs in the Accra-Tema Metropolitan Area.

He said on the average, GWLC was spending on monthly basis, 2.2 billion cedis on electricity, 7.1 billion cedis on personnel and 5.3 billion cedis on chemicals adding, "this picture gives us a complete view of the state of the company now".

Mr Maison bemoaned the fact that tariff levels of the company have always lagged behind the actual cost of operations, a situation, which he said: "Have led to the deterioration of plant and equipment for lack of adequate and timely maintenance and replacement of obsolete machinery".

Mr Maison said the water sector was currently being prepared for private sector participation (PSP) as a means of improving on its financial, managerial and operational performance.

To facilitate this process, he said, 125 rural and small towns water supply systems had been transferred to the District Assemblies for community management through the Community Water and Sanitation Agency (CWSA).

Mr Maison said this has left the GWCL with a total of 83 major pipe-borne water supply systems serving only the urban areas, which will be involved in the PSP programme.

The Chief Manager said there was currently a proposal before the government recommending a strong public-private partnership approach to the urban water sector, with a modified lease arrangement as a desired vehicle.

Mr Maison urged the retired staff of the GWCL to strive to be productive even in their retirement saying, "Even in retirement, you can help change a situation for the better".

He advised them to come together and form a company so that they could also compete for contracts such as pipe-laying, metering and new service connection to earn some income to supplement their pension benefits. Mr Anthony Yartel Kwamina Aidoo, National Chairman of the Retired Staff Association of the GWCL, said with the inauguration of the Northern Regional branch of GWCL only the Upper East and Upper Regional branches did not have their associations inaugurated.

A ten-member executive with Mr Abu Dagomba, as Chairman of the branch Association, was inducted into office.