The performance of public utilities in low-income countries with respect to service to all
customers, and particularly lower-income urban consumers, is understood to be limited
in many cases. The Government of Ghana chose to implement a private sector
management contract in order to deliver significant change in service delivery and
financial viability. The five year management contract with Aqua Vitens Rand Limited
ran from 2006 to 2011 and was not renewed.
This study investigates the public utility outcomes, both as a state owned corporation
and a state owned limited liability Company, and compares those outcomes with the
achievements of the private operator through a Management Contract. The latter two
management models operated under the oversight of the newly formed economic
regulator, the Public Utility Regulatory Commission in 1999 and any effect of that
regulation is considered. The hypothesis of the study developed in 2008 was that “a
management contract would not provide the necessary level of empowerment,
incentives and commitment and access to resources for a private operator to
adequately and efficiently perform even where there is an established economic
regulator with a clear mandate”.
The case study approach was employed for the study data was gathered on the
operations, activities, regulation and management of the urban water utility through
documentary review, key-informant interviews, household surveys, public hearing
meetings and user observations. However, three major cities including Accra, Kumasi
and Tamale were used for the household survey. These three cities were carefully
picked out taking into account the political, economic, geographical, social and cultural
significance that each of the them represents and commands in Ghana. ...[cont.