Ghana Water Limited (GWL) has identified a critical flaw in its operations: 62 out of every 100 commercial water meters inspected are not present in the company's official database. Adam Mutawakilu, the Managing Director of GWL, disclosed this alarming figure, highlighting a major challenge for the state-owned utility.
This significant data gap directly impacts GWL's ability to collect revenue effectively. Mr. Mutawakilu stated that the company currently raises less than 50% of the revenue it should be generating. This shortfall means GWL relies heavily on government funding, hindering its operational independence and investment capacity.
The revelation underscores broader issues within Ghana's public utility sector, where inefficient revenue collection and reliance on state subsidies are common. For instance, the Electricity Company of Ghana (ECG) has also faced challenges with power theft and billing discrepancies, impacting its financial health. This situation for GWL suggests a systemic problem in managing public services and ensuring their financial viability, affecting millions of Ghanaian households and businesses.
Speaking before Parliament's Public Accounts Committee on Tuesday, October 13, Mr. Mutawakilu described the finding as "worrying." He explained that the company is actively replacing meters to strengthen revenue collection. "For every hundred commercial meters that we are on estimates, we discover 62 that are not in our database," he stated, emphasizing the scale of the problem.
GWL aims to achieve financial self-sufficiency by 2027, reducing its dependence on government support. This goal requires a substantial improvement in revenue mobilization. The company also seeks government assistance to convert legacy loans into equity, which would improve its balance sheet and help manage foreign exchange losses from loan repayments. A stronger equity position is crucial for attracting new investments and funding essential infrastructure projects.
The implications of this revenue gap are far-reaching. A financially weak GWL struggles to maintain and expand its water infrastructure, potentially leading to inconsistent water supply for citizens and businesses. The company serves approximately 18.5 million people nationwide. Its inability to generate sufficient funds means less investment in new pipelines, treatment plants, and advanced metering technology. This could perpetuate issues like non-revenue water, which includes losses from leakages and illegal connections, further straining the company's finances.
Addressing the missing meters and improving billing accuracy is paramount for GWL's future. Successful implementation of the meter replacement program and robust data management will be key performance indicators. The government's response to GWL's request for legacy loan conversion will also significantly influence the company's financial trajectory. Without these measures, the burden on the national budget could increase, diverting funds from other critical sectors.
The situation also highlights the need for greater accountability and transparency in state-owned enterprises. Effective oversight by parliamentary committees and regulatory bodies like the Public Utilities Regulatory Commission (PURC) is essential. The PURC has previously urged GWL to adopt advanced metering technology to track consumption more accurately. This incident reinforces the urgency of such recommendations to ensure sustainable water provision across Ghana.