The Ghana Water Company Limited (GWCL) in the Western Region is facing a critical financial challenge as unpaid customer bills have accumulated to over GHS 23 million, impacting the company’s ability to deliver a steady water supply to residents. Nana Yaw Barima Barnie, the Acting Chief Manager of the Western Regional office, announced this on Tuesday, October 29, in an interview with Citi News in Takoradi.
He emphasized the urgent need for customers to settle their outstanding bills, as the revenue is crucial for GWCL’s operations, including water treatment, maintenance, and other expenses essential for consistent water delivery.
Nana Yaw Barima Barnie revealed that GWCL is launching a revenue mobilization drive, targeting customers who have not paid their bills. The company intends to recover the GHS 23 million owed in the Western Region as part of a broader effort to sustain its services and stabilize operations. “Currently, Ghana Water Company has a big issue of arrears owed by customers,” Mr. Barnie explained. “Countrywide, we are owed in excess of GHS 800 million, and when you come to Western Region alone, the arrears are in excess of GHS 23 million. This is a big problem for us,” he added.
The financial strain caused by unpaid bills extends beyond the Western Region. Across the nation, GWCL faces a substantial debt burden of over GHS 800 million, which puts considerable pressure on the company’s resources. Unlike some government entities, GWCL does not receive subsidies, meaning it relies heavily on customer payments to fund its daily operations. Without these payments, the company’s capacity to maintain infrastructure and sustain essential services is compromised.
The Acting Regional Chief Manager stressed that the water company imports many of the inputs needed for water treatment, making it even more challenging to manage without prompt payments from customers. He highlighted the importance of customer contributions, explaining, “Ghana Water Company at the moment is not a subverted organization, so for what we need to do in our day-to-day operations, we depend on the bills our customers pay us.” He continued, “We buy chemicals in foreign currencies, pipes, fuel our vehicles, maintain equipment breakdowns, pay staff salaries, and cover other operational costs. All these require substantial funds, and that money comes from the bills customers pay.”
Nana Yaw Barima Barnie provided a stark example of the impact of late or insufficient payments, noting that when customers pay only a portion of their bill—such as GHS 300 out of a GHS 1,000 balance—it creates significant gaps in the company’s revenue. “If you have a customer who pays you just GHS 300 out of a bill of GHS 1,000, it means you’re not in good business,” he noted. This shortfall in revenue not only hinders operational capabilities but also jeopardizes the quality and reliability of the water supply that residents depend on.
To address this issue, GWCL is implementing a targeted revenue mobilization initiative in the Western Region, focused on recovering outstanding debts from customers. The campaign will involve teams going house-to-house to collect overdue payments, with the initiative running from now through the end of December. According to Mr. Barnie, GWCL’s goal is not to inconvenience customers with disconnections but to encourage prompt bill payments to ensure continuity of service. “We are moving from house to house to collect bills that people owe us from now till December end,” he explained. “If we come to your house, we expect that you pay us what you owe us. It is not in our interest to disconnect a customer, so we want customers to pay their bills even before we get there,” he added.
This mobilization effort underscores the challenges faced by GWCL and the importance of customer contributions in maintaining the company’s financial health. Without adequate revenue, GWCL’s ability to invest in infrastructure, procure essential treatment materials, and conduct necessary maintenance is significantly compromised. Additionally, as water demand grows, maintaining consistent supply requires that the company remains financially stable, which is only possible with prompt and full payment of bills by all customers.
In sum, the substantial debt owed to the Ghana Water Company in the Western Region reflects a broader issue of payment delinquency affecting the company on a national level. With over GHS 800 million in unpaid bills across the country, GWCL is under considerable pressure to bridge this revenue gap to ensure uninterrupted water supply. The Western Region alone contributes GHS 23 million to this outstanding debt, and GWCL’s intensified revenue mobilization drive seeks to address this problem by encouraging customers to clear their arrears.
As GWCL continues its efforts to maintain water supply services, the cooperation of customers in settling their bills will play a critical role in sustaining the company’s operations. The revenue collected from this campaign will enable GWCL to secure the necessary resources to support water treatment, infrastructure maintenance, and service improvements for residents. Through this initiative, GWCL aims to overcome its financial challenges and reinforce the stability of water supply services in the Western Region and beyond.
