Parliament approves agreement for Tarkwa Water Supply Project

Parliament yesterday approved the Credendo Buyer’s Credit Facility agreement involving €74,145,500.00, between the government, the KBC Bank NV and COMMERZ BANK AG, for the Tarkwa Water Supply Project.

Presenting the report on the floor of the House, before the approval on Thursday, Kwaku Ayeman Kwarteng, Chairman of Finance Committee of Parliament, said the project was necessitated by the fact that government intended to secure the credit facility to expand the water supply system in Tarkwa.

He explained that it was to address the gaps in water supply and demand in Tarkwa and its environs in pursuit of United Nation’s Sustainable Development Goal 6.

Mr Kwarteng, who is also Member of Parliament (MP) of Obuasi West, said the existing Bonsa Water Treatment Plant, which was constructed in the 1970s, has not been rehabilitated and expanded to meet the ever increasing water demand in the area.

He added that the current water supply for Tarkwa area was estimated to be 2,800m³/day (0.62MGD) although the current demand was about 15,000m³/day (3.3MGD), thereby creating  a demand-supply gap of about 12,200m³/day (2.68MGD).

Mr Kwarteng said the situation had compelled majority of the inhabitants to resort to other sources, including water vendors, for water.

He noted that alternative water sources were more expensive and sometimes associated with negative health effects, if not handled properly.

Mr Kwarteng said the project was expected to be completed in 36 months with a Defect Liability Period of 12 months “from handing over of each complete element to the client.”

He said the Ministry of Finance assured Members of the Committee that the credit facility would not impact on the country’s debt sustainability because it was factored into government’s medium term debt strategy.

Mr Kwarteng said this formed part of government’s borrowing plan for the medium term, adding that “the drawdown on the facility” was also factored into the projected end of year debt-Gross Domestic Product (GDP) ratio.

He said since the committee has noted that the ministry had not completed the Value for Money Audit on the project, the ministry must ensure that the audit was completed before the signing of the contract as dictated by the law.


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