Mgt. of GWL denies media claims it has dissipated $100M loan for Techiman Water Supply Expansion Project with no work to show for

The Management of Ghana’s urban water distribution company, the Ghana Water Limited (GWL), has debunked claims by some section of the media that a hundred million United States dollar (USD100M) loan facility secured by the Government and GWCL, and approved by Parliament in the year 2020 for the construction of the Techiman Water Supply Expansion Project has been dissipated.

According to a statement issued and signed by Mr Stanley Martey, Head of Communication at Ghana Water LTD, titled “TECHIMAN WATER SUPPLY SYSTEM IN RETROSPECT, even though the loan was approved in 2020, the funds have not been disbursed.

“GWL would like to state categorically that the funds under discussion have not been dissipated as purported by some Journalists and Social Commentators. On the basis of the above-mentioned facts, the necessary measures taken with regard to the Techiman Water Supply Project are detailed as follows:

 • As a condition precedent for the implementation of the Techiman Water Supply Expansion Project, the Government of Ghana (GoG) signed the Pledge and Framework Arrangement with the Korea Eximbank.

• Parliament granted approval for the loan agreement on the 5th of November 2020. Based on the approval by Parliament, the Government of Ghana (GoG) signed a loan agreement with the Exim Bank of Korea on 17th December 2020.

• The Technical Proposals of four Consultancy Services were evaluated by the Technical Appraisal Committee (TAC) constituted by the GWCL in 2021 and Messrs CHEIL-KECC-SAMAN JV ranked first.

• Subsequent to the completion of the evaluation process, the Technical Appraisal Committee (TAC)’s report received approval by the Management of GWL and the Export-Import Bank of Korea’s No Objection.

• After the Bank’s No Objection on the recommended firm, negotiations between GWL and the CHEIL-KECC-SAMAN JV on consultancy services for detailed design and construction of the Techiman Water Supply Project began on 9th August 2022 and were successfully completed on 7th October 2022.

• It is important to note that the contract between GWL and CHEIL-KECC-SAMAN JV for project consulting services was prepared and forwarded to the Korea Exim Bank, awaiting a No Objection approval and signature.

• The Korea Exim Bank in a letter dated 23rd August 2024, has granted their No Objection for the signing of the contract to enable the project to commence by the end of the third quarter of 2024.

• Following the approval of the No Objection by the Korea Exim Bank, the selection of a Contractor to undertake the works will be done as part of the recommended Consultant’s (CHEIL-KECC-SAMAN JV) assignment.

However, this activity is yet to be done.

• It should also be noted that payments (or loan disbursements) for works that will be undertaken by the Contractor under the project will be made directly to the Contractor by the Exim Bank of Korea upon receipt of Contractor invoices authorized by GWL and GoG in accordance with the Loan Agreement.

Management of GWL seeks to lay emphasis on the fact that, approval of the loan by Parliament is no indication whatsoever that such funds have been received by the Government. As indicated, payments pertaining to the project are to be made strictly by the Bank and not any Government official.

 Furthermore, claims that no substantial progress has been made on the Techiman Water Supply Project to date cannot be true, as facts show that initial procedures have been carried out in respect of the project.

The apparent delay of the project is due to GWL and Government undertaking the necessary due diligence to ensure that all processes are executed effectively and efficiently.

It is therefore evident that allegations made by some media personalities and social commentators are uncorroborated, unfounded, and contentious.” Portions of the statement read.

The management of GWL has therefore implored any media house or personality who wishes to comment or publish any issue in respect of the Techiman Water Supply Extension Project or any other project being executed by the Ghana Water Ltd, to seek information from the communications outfit of the company or may use the Right to Information Desk at the Head Office before doing so.

Below is the full statement from the Head of Communications of GWL

 THE EDITOR

 TECHIMAN WATER SUPPLY SYSTEM IN RETROSPECT

 The Techiman Water Supply System located at Tanoso supplies potable water to Techiman and 15 surrounding towns. The system is fraught with challenges as demand for water far exceeds the available supply due to the ever-increasing population growth. The system was constructed in 1997 and is based on the abstraction of water from River Tano and also augmented by boreholes. The system has undergone rehabilitation and upgrades over the years.

The current water supply from the Tanoso Water Treatment Plant and the existing borehole system is estimated at 4,348m3/day although the current water demand is 15,228m3/day. This implies that there is a demand-supply gap of about 10,880m3/day. It is projected that the water demand will increase to 19,385m3/day by the year 2030.

 As a result of the current situation, the Government of the Republic of Ghana requested the Government of the Republic of Korea to provide financial support for the expansion of the system under the Economic Development Cooperation Fund (EDCF).

 A USD100 million loan was secured by the Government and GWCL, and approved by Parliament since 2020 for the construction of the Techiman Water Supply Project.

The facts of the project are highlighted below:

• The existing Techiman Water Supply System was commissioned in 1997 and has since not seen much or significant rehabilitation or expansion.

• In order to meet current and future water demand in Techiman and surrounding areas, a rehabilitation of the existing water supply system and construction of a new Water Treatment Plant (WTP) with a 17,000m³/day capacity was proposed.  

• The proposed project is expected to be financed by the Export-Import Bank of Korea at an estimated cost of USD100 million.

• The Government of Ghana (GoG) is mandated to sign the Pledge and Framework Arrangement with the Korea Exim Bank for the implementation of the Techiman Water Supply Expansion Project.

• As part of guidelines under the Economic Development Cooperation Fund (EDCF) loans, Korean Consulting Firms and Contractors will be required to execute the project. The consulting services include but are not limited to the Engineering Design, Preparation of Tender Documents and Construction Supervision of the proposed works.

• Management of GWL must constitute a Technical Appraisal Committee (TAC) to evaluate Technical Proposals for Consulting Services in respect of the project.

• Consultancy Services with satisfactory proposals as determined by the TAC should be ranked based on the evaluation criteria set for the Technical Proposal.

• Subsequent to the evaluation exercise, the TAC report must be approved by Management of GWCL with a No Objection from the Korea Exim Bank.

Management of GWL would like to state categorically that the funds under discussion have not been dissipated as purported by some Journalists and Social Commentators. On the basis of the above-mentioned facts, the necessary measures taken with regard to the Techiman Water Supply Project are detailed as follows:

 • As a condition precedent for the implementation of the Techiman Water Supply Expansion Project, the Government of Ghana (GoG) signed the Pledge and Framework Arrangement with the Korea Eximbank.

• Parliament granted approval for the loan agreement on the 5th of November 2020. Based on the approval by Parliament, the Government of Ghana (GoG) signed a loan agreement with the Exim Bank of Korea on 17th December 2020.

• The Technical Proposals of four Consultancy Services were evaluated by the Technical Appraisal Committee (TAC) constituted by the GWCL in 2021 and Messrs CHEIL-KECC-SAMAN JV ranked first.

• Subsequent to the completion of the evaluation process, the Technical Appraisal Committee (TAC)’s report received approval by the Management of GWL and the Export-Import Bank of Korea’s No Objection.

• After the Bank’s No Objection on the recommended firm, negotiations between GWL and the CHEIL-KECC-SAMAN JV on consultancy services for detailed design and construction of the Techiman Water Supply Project began on 9th August 2022 and were successfully completed on 7th October 2022.

• It is important to note that the contract between GWL and CHEIL-KECC-SAMAN JV for project consulting services was prepared and forwarded to the Korea Exim Bank, awaiting a No Objection approval and signature.

• The Korea Exim Bank in a letter dated 23rd August 2024, has granted their No Objection for the signing of the contract to enable the project to commence by the end of the third quarter of 2024.

• Following the approval of the No Objection by the Korea Exim Bank, the selection of a Contractor to undertake the works will be done as part of the recommended Consultant’s (CHEIL-KECC-SAMAN JV) assignment. However, this activity is yet to be done.

• It should also be noted that payments (or loan disbursements) for works that will be undertaken by the Contractor under the project will be made directly to the Contractor by the Exim Bank of Korea upon receipt of Contractor invoices authorized by GWL and GoG in accordance with the Loan Agreement.

Management of GWL seeks to lay emphasis on the fact that, approval of the loan by Parliament is no indication whatsoever that such funds have been received by the Government. As indicated, payments pertaining to the project are to be made strictly by the Bank and not any Government official.

 Furthermore, claims that no substantial progress has been made on the Techiman Water Supply Project to date cannot be true, as facts show that initial procedures have been carried out in respect of the project.

The apparent delay of the project is due to GWL and Government undertaking the necessary due diligence to ensure that all processes are executed effectively and efficiently.

It is therefore evident that allegations made by some media personalities and social commentators are uncorroborated, unfounded, and contentious.

The management of GWL implores any media house or personality who wishes to comment or publish any issue in respect of the Techiman Project or any other project being executed by the Ghana Water Ltd, to seek information from the communications outfit of the company or may use the Right to Information Desk at the Head Office before doing so.

 The Ghana Water Limited remain committed to meeting the increasing demand for better service delivery and the Sustainable Development Goals which is also a target for the Government of the Republic of Ghana and that of the Ghana Water Ltd.

 Stanley Martey

Head of Communication

Ghana Water LTD

smartey@gwcl.com.gh

By: Franklin ASARE-DONKOH/GBCGHANAONLINE/Inghananewstoday.com