GRi Press Review 07 - 03 - 2003

Water privatisation stalls

Accra 150th best city in the world, study says

Minister dragged to court

Wulensi says yes to NPP  

 

 

Water privatisation stalls

 

Accra (Greater Accra) 07 March 2003 - Capital crunch on the international financial market is slowly killing interest by international financial institutions to commit more funds to sectors like water, power telecommunications in Africa.

 

The Minister of Finance, Yaw Osafo Maafo acknowldeged in the 2003 Budget Statement that the general slack in global finance could affect the country’s attempt to source funding for various projects.

 

He did elaborate, but some financial experts have attributed the decision of the government to put the water privatisation on hold until further notice to the unwillingness of financial institutions to commit more cash to those sectors.

 

The controversy that has dogged water privatisation, especially in Africa, makes the sector an unlikely candidate for future investments. The wait and see attitude adopted by financial institutions has been blamed on the events leading to and after September 11 and the looming Iraq-USA war.

 

In February, the Water Sector Restructuring Secretariat announced that the government had deferred the implementation of the Private Sector Participation in Water (PSP) scheme scheduled to start this month to a later date.

 

State owned Daily Graphic quoted Captain Victor Ansah, an official of the secretariat as saying that the decision to hold on was due to bureaucratic procedures involving the preparation of bidding and the transaction documents and a thorough study of the companies shortlisted for implementation of the project. The companies vying for contract are Biwater/Aqua Mundo, Undeo, Sauz and General Suaz.  

 

Additional information reaching the Weekend Agenda says one of the intitial bidders, Bechtel, has pulled out of the competition due to pressure by some NGOs in the United States. The NGOs late last year invaded the offices of Bechtel urging the company to pull out.

 

When reached for his comments on the unfolding trend in the water sector, Rudolf-Amengo, Coordinator of the National Coalition Against Water Privatisation (NCAP) said NCAP had earlier drawn the government’s attention to the fact that the companies shortlisted have no good record in handling water efficiently. “If the government has now seen the need to scrutinise the companies, the better for all of us,” says Amengo.

 

He explained that in pushing the water privatisation agenda, the government made Ghanaians to believe that the companies were going to bring all the money into the country. He said the two companies that would win the bid were expected to borrow $70m each from the operational fund of the World Bank at one per cent interest rate.

 

According to Amengo, the loan has now been slashed to $30m, meaning the government would be compelled to look for the extra $40m each to cushion the companies. “After telling Ghanaians that the companies will bring in all the money, the government is now finding it difficult to tell the public that it will have to borrow additional money for the companies to operate,” Amengo alleges.

 

He suggested that the government should scrap the water restructuring programme and open debate for the restructuring of the Ghana Water Company Limited (GWCL). Part of the restructuring should aim at making GWCL a kind of public trust company to deliver water to deprived areas as part of the government’s social responsibility.

 

Urban areas like Accra, Kumasi, Tema and Takoradi could then have municipal water companies. Amengo noted that the provision of water to the poor should be a budgetary issue and that the World Bank and the IMF should give the government the free hand to make more budgetary allocations to water as a first step to reducing poverty.

 

He regretted the decision by the World Bank and the IMF to make the commercialisation of water one of the conditions for more budgetary support to the government, adding, “it is not in the national interest. We should be given the freedom to debate the options.”

 

On the way forward, Amengo suggested that part of the solution to the water problem should start with making it compulsory for developers to make provision for harvesting rainwater for domestic use. “There has to be a use policy in the country to discuss how we can harvest rain water for car washing and watering lawns and gardens, instead of using treated water.”

 

He said harvesting water should be part of the housing and planning policy, which could be achieved by introducing a housing subsidy to enable the poor to build houses to specification.

 

Meanwhile, World Bank, the brain behind water privatisation endorsed a Water Resources Strategy on 26 February. It is aimed at providing more effective assistance to countries using water as a vehicle for increasing growth and reducing poverty. The World Bank believes that by making efficient use of existing water resources, the new strategy will contribute to the international development goal of halving poverty by 2015.

 

The Bank says the newly released strategy reflects the demand from poor countries for a more balanced approach in investment in water infrastructure. The bank notes that a central water management challenge in most countries is agriculture, which accounts for over 70 per cent of water use. – Public Agenda

 

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Accra 150th best city in the world, study says

 

Accra (Greater Accra) 7 March 2003 - Accra finished 150th, up three spots from last year, in a study ranking quality of life in 215 world cities. Accra lost out to cities like Ho Chi Minh City(Vietnam), Kingston(Jamaica), Harare (Zimbabwe), but claimed the scalps of Beirut(Lebanon), Bombay (India) Moscow (Russia) and Lagos (Nigeria)

 

The study, from Mercer Human Resource Consulting - a firm with offices in 40 countries - takes into account public safety, political stability, economics, culture, personal freedom, schools, transit and other public services.

 

The Swiss city Zurich ranked first again this year followed by Vancover, Canada. Many of the world's cities, in industrialized countries, with large concentration of Ghanaian immigrants rank quite low on the quality-of-life scale.

 

Toronto ranked 12th, Hamburg -26th, London ranked 39th, Paris - 31st, New York ranked 44th, Chicago - 47th, Los Angeles - 53, Rome, Italy – 60. Ranked on public safety alone, Canada's cities were the safest in North America, the study says, "due to strict law enforcement and low crime rates." All five cities tied for 25th in the world on this measure.

 

Washington, D.C., was North America's most dangerous city, ranking 107th. The worst place in the world to live was Brazzaville, capital of the Republic of Congo. It ranked 215th. Many African cities were clustered at the bottom of the scale, but the Iraqi capital of Baghdad was third-last.

 

Luxembourg was the safest city in the world; Bangui, in the Central African Republic, was deemed the most dangerous.

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Minister dragged to court

 

Accra (Greater Accra) 7 March 2003 - The Minister of Roads and Transport, Dr Richard Anane has been summoned before a Kumasi High Court to defend a charge for non-payment of rent. A writ, filed in Kumasi on 27 February 2003, by a Tarkoradi based lawyer, E. K. Amua Sekyi, on behalf of the plaintiff, Madam Florence Amoakohene, is claiming 34m cedis arrears of rent.

 

The plaintiff is also claiming recovery of House No. Plt. 10, Block 4 at South Suntreso extension in Kumasi, which premises the minister, who is also the MP for Bantama, has occupied as a tenant since 1996. Madam Amoakohene, a resident of South Kweikuma in Sekondi claims that since 1996, the defendant the Minister undertook to renovate the premises defray two years rent at 300,000 monthly from January 1996 December 1997.

 

It was further agreed that the defendant was to commence payment of rent from January 1998 but he ignored moves by the plaintiff to enter into a fresh tenancy agreement. The plaintiff stated that the parties finally agreed to a monthly rent of 2m cedis, effective January 2001.

 

According to her the rent for three year from January 1998 to December 2000 had been waived because several attempts to get the defendant signed a tendency agreement prepared to commit him pay rent therefrom had not succeeded. She said because of persistent demands (orally and in writing) the defendant finally made a total payment of 24m cedis in two instalments of 20m cedis and 4m cedis.

 

The plaintiff said the defendant was further served with a notice of increase in rent from 2m cedis to 5m cedis with effect from January this year. The defendant has failed to pay the arrears of rent from January 2001 to December 2002 (24m cedis) and that of January and February (10m cedis) amounting to 34m cedis. Dr Anane is expected to enter appearance within eight days. - The Ghanaian Chronicle

 

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Wulensi says yes to NPP

 

Wulensi (Northern Region) 07 March 2003 - The outcome of the Wulensi by-election has come as a great relief to the ruling party with many describing the party’s victory as an endorsement of the Kufuor government.

 

Party officials told The Statesman the New Patriotic Party (NPP) “will not betray the confidence reposed in it by the good people of Ghana. We in the party are very happy with the result and would like to thank all of our supporters, old and new, for their continued faith in the NPP. We promise to continue to repay this confidence with good governance,” Kwadwo Afar, Press Secretary of the party declared.

 

The Wulensi by-election was won by the NPP candidate, Kofi Karim Wumbei, with 8197 votes from the total vote cast of 16,798. His closest rival, Sadani Njigur of the NDC obtained 7,303 votes. Other candidates trailed far behind them. They are Daniel Okpanul Niwubni, PNC, 319, Dawuda Mumuni, DPP, 227 votes and Inusah Natogmah, EGLE, 56.

 

The two independent candidates also had a bad showing with Alhaji Ziblila Musa obtaining 75 votes and Peter Maagan Oggah securing 53. 

 

The party of the first President of Ghana, the Convention People’s Party (CPP) did not field a candidate, citing lack of preparation. Yet, a CPP party chairman recently called for snap general elections. The Nkrumahaist party was last Wednesday described by Egbert Faibille of The Independent as an ‘NGO”.  

 

The NPP victory, according to some observers, is an indication of what the party’s opponents should expect in the pending by-elections to be held at Navrongo Central and Gomoa East constituencies.

 

Kwabena Agyapong, Press Secretary to the President, said the victory is a confirmation of the confidence expressed by Ghanaians as shown by recent survey conducted by the Ghana Centre for Democratic Development (CDD-Ghana).

 

In a nationwide survey by the civil society organisation, President Kufuor was rated 74 per cent by the respondents who expressed their confidence in his government while his NPP government was trusted with 51 per cent.

 

Agyepong said, “this is a clear manifestation of the confidence the people have in President Kufuor’s leadership to reposition Ghana, taking the necessary decisions to put the country to put the country on the path of economic growth.” He said the people are using the election to send strong signals to agents of misinformation and falsehood that the era of deception was over.

 

“It is a clear rejection of those who have deliberately gone on the rampage with lies and the distortion of fact, with a view to causing disaffection for this government. “This victory is a signal that the old era of negative politics is over and we want to usher the country into a new era of healthy debate and dialogue,” he stressed.

 

Agyepong noted that with the election coming on barely a week after the presentation of the national budget, which was described by the NDC as a “killer budget,” one would have expected a backlash for the government. Rather, he said, the NPP’s win of the Wulensi seat, which was held by the NDC, saw the people warming up to the NPP.

 

“It is an affirmation of the new direction of this government as illustrated by the budget which has a very human face and most of the spending is on productive projects which will generate employment for the teeming population,” he emphasised.

 

But amidst the victory is an accusation and counter-accusation of vote buying and vote rigging traded by the two main political parties- NPP and NDC. Apparently, the NDC cannot stomach the defeat, choosing to blame their failure on the very practices they were accused of when Rawlings was President.

 

The party’s General Secretary, Josiah Aryeh appears very aggrieved by the provision of electricity to the Wulensi community, describing it as an electoral inducement to the electorate. “This is not the way the country must move forward.” The NDC, he said, lost the election as a result of vote rigging, vote stealing and vote buying.”

 

But Dan Botwe, NPP General Secretary, dismissed the NDC accusation, saying that the election was won purely by hard work. He said the NDC rather induced the electorate with salt and used clothing. “The NDC should know by now that Ghanaians are becoming very discerning. These things are no longer going to help them. They better change their style,” he said.

 

Botwe expressed the optimism that the party will retain the pending Gomoa East and Navrongo Central by-elections.

 

Lord Commey, National Organiser of the NPP described the elections as a “hard fought victory. The NDC played the ethnic card, putting lies and deceit into the public sentiments in the Konkomba community. They also employed strategy of bribery by attempting to entice the villagers with bags of salt as gifts. It was our message and extra hard work that won us the election,” he said.

 

He said projects sited in the area were not to woo voters but rather as the responsibility of the government to the people. “This government takes its responsibility very seriously and I am not surprised at all that the people of Wulensi have responded by showing their appreciation and gratitude for the improvement in their lifestyle.” – The Statesman

 

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