ghana: ifi’s and water
privatization
In 2004 the World Bank approved a US$103
million dollar loan for the privatization
of Ghana’s urban water system, despite
three years of active opposition by civil
society. The loan proposal is packaged as
though the concerns of the poor are a high
priority. It argues that existing state
companies are inefficient and that private
companies would deliver water to more
people more effectively. However,
privatization is targeted at water services
in selected cities - where most of the poor
do not live. Moreover, the poor are likely
to be severely disadvantaged by the fact
that profit-motivated companies will
determine prices. The World Bank’s Project
Appraisal Document confirms that prices
will rise, since it also points out that
project loan debts have to be serviced.
At least four major multinational
companies have expressed interest in
bidding for the contract: Biwater, Suez,
Vivendi (now called Veolia) and Saur. While
the World Bank has approved the loan, the
Ghanaian government has not yet formally
opened the bidding process. The Ghana
National Coalition Against the
Privatization of Water has stated that its
resistance to the privatization of water
will continue and the ultimate objective is
clear - access to potable water must be
universally available and guaranteed as a
human right.
more information
Friends of the Earth Ghana
