The Tarkwa Water Supply Project in the Western Region will be financed with a €74.15 million loan, which has been approved by Parliament.
The facility consists of an export credit guarantee of €9.15 million and an associated insurance of €65 million for the commercial contract.
Goal of the project
By increasing the capacity of the current Bonsa water supply system and extending access to neighboring communities, the project aims to increase access to potable water for the residents of Tarkwa and its surrounding communities.
To meet the current demand of 15,000 cubic meters as well as the anticipated water demand for the municipality through 2040, it will increase the capacity of the current water supply system from 2,800 cubic meters per day to 27,000 cubic meters per day.
The Chairman of the Parliamentary Finance Committee, Kwaku Kwarteng, made the motion to approve the loan, and the Ranking Member of the committee, Dr. Cassiel Ato Forson, seconded it.
After carefully reviewing the agreement, the committee was convinced that, if approved, the facility would help increase access to water in Tarkwa and its catchment areas, according to Mr. Kwarteng, who read the committee’s report prior to the loan facility’s approval.
Despite the loan’s favorable terms and conditions, Dr. Forson claimed in his submission that the insurance component was the issue.
So as to ensure value for money, he requested that the government work on the insurance component.
The ranking member also suggested that the government implement policies and programs to address the issue, claiming that the country’s poor credit standing on the international market was to blame for the high insurance premium covering the loan.
In his contribution to the motion, Isaac Kwame Asiamah, the chairman of the Committee on Works and Housing, stated that the government’s goal in obtaining the credit facility was to increase Tarkwa’s water supply system’s capacity in order to address the disparities between water supply and demand in Tarkwa and its neighboring communities.
According to him, the project aimed to achieve Sustainable Development Goal Six, which calls for universal access to potable water by 2030.
Members of the House must approve the loan for the project to move forward, according to Mr. Asiamah, who claimed that the existing Bonsa water treatment plant, built in the 1970s, had not been upgraded and expanded to handle the supply area’s rising water demand.
The Western Regional Minister, Kwabena Okyere Darko-Mensah, who is the MP for Takoradi, for his part, said the project would be a game changer in water supply for the people of Tarkwa and its environs.
He said Tarkwa was the capital of the Tarkwa Nsuaem municipality in the Western Region, with a population of about 90,477.
The municipality was expected to experience rapid population growth as Tarkwa continued to discover a greater potential for socio-economic growth.
He said the expansion in the water supply system would help address the current demand for potable water and beyond