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23rd January, 2010
Aqua Vitens Rand Limited Recommending Extension Of Management Contract
Aqua Vitens Rand Limited, the Operator of Ghana’s urban water system, is recommending an extension of its management contract to enable it to complete the tasks set for it in 2006.
“We should be here longer,” AVRL says, advising against a progression to a lease contract which, it says the Ghanaian utility is not ready for at this stage of its development.
The recommendation was contained in a e-mailed written response to a questionnaire submitted to Rand Water Services Limited during a visit by the Times to its headquarters in Johannesburg.
The consortium has been manageing the utility on behalf of Ghana Water Company Limited (GWCL) for upwards of three and-a-half years.
Rand Water is a partner with Vitens of Holland in the consortium, a partnership created for the purpose of bidding for the contract in 2004.
Its recommendation against managing Ghana’s urban water system under a lease contract is based on the fact that “the tariff regime (in Ghana) is not sufficient to attract a lease.”
Under the grant agreement signed with the World Bank, the Government of Ghana may, if it finds significant improvement in the water supply system after the five years management contract, decide to opt for a lease which the lessor brings in investment and operates the system for a period of time to recoup its investments.
The management contract option was supported by the World Bank principally on grounds that it would help improve the utility to enable it to attract private investors.
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In categorical language, however, Rand Water, itself a public utility, says “we will not be interested in participating in a lease ourselves.” It sees its participation in Ghana’s water sector as a corporate social responsibility project of its shareholders. “We are not in Ghana motivated by profit,” Rand Water says.
It makes it clear, however, that “our role is to support whatever the government, through GWCL, chooses. But we will be ready to help attract bids or candidates for GWCL, if that (a lease) is the path that they (the government and people of Ghana) wish to pursue.”
“We should be here longer,” AVRL says, advising against a progression to a lease contract which, it says the Ghanaian utility is not ready for at this stage of its development.
The recommendation was contained in a e-mailed written response to a questionnaire submitted to Rand Water Services Limited during a visit by the Times to its headquarters in Johannesburg.
The consortium has been manageing the utility on behalf of Ghana Water Company Limited (GWCL) for upwards of three and-a-half years.
Rand Water is a partner with Vitens of Holland in the consortium, a partnership created for the purpose of bidding for the contract in 2004.
Its recommendation against managing Ghana’s urban water system under a lease contract is based on the fact that “the tariff regime (in Ghana) is not sufficient to attract a lease.”
Under the grant agreement signed with the World Bank, the Government of Ghana may, if it finds significant improvement in the water supply system after the five years management contract, decide to opt for a lease which the lessor brings in investment and operates the system for a period of time to recoup its investments.
The management contract option was supported by the World Bank principally on grounds that it would help improve the utility to enable it to attract private investors.
.
In categorical language, however, Rand Water, itself a public utility, says “we will not be interested in participating in a lease ourselves.” It sees its participation in Ghana’s water sector as a corporate social responsibility project of its shareholders. “We are not in Ghana motivated by profit,” Rand Water says.
It makes it clear, however, that “our role is to support whatever the government, through GWCL, chooses. But we will be ready to help attract bids or candidates for GWCL, if that (a lease) is the path that they (the government and people of Ghana) wish to pursue.”
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