When the Teshie-Nungua seawater desalination plant launched, it promised to ease water shortages in Accra’s coastal communities by turning seawater into drinkable water. The project used a build-own-operate-transfer public-private partnership (PPP) model, where a private developer financed and ran the plant, selling treated water to Ghana Water Company Limited (GWCL). But a closer look at the project’s financial and operational challenges reveals deeper questions about how Ghana manages water infrastructure and long-term supply.
Research conducted as part of a doctoral thesis examined the governance and sustainability of the Teshie-Nungua project. The study involved interviews with 14 institutional participants and two focus groups, offering a snapshot of the project’s situation during the period analysed, not a current audit.
One of the main issues was inadequate preparation. Participants pointed out gaps in due diligence, financial appraisal, monitoring, and coordination among public institutions. The project was an unsolicited proposal, a technically complex offer that the contracting authority struggled to assess because it lacked enough specialist capacity to verify the assumptions independently.
The research found that the purchase price for treated water was US$1.32 per cubic metre, with a monthly capacity charge of about US$1.4 million. These figures come from the period studied, not current prices. But they raise a serious financial question: what happens when a utility’s contractual payments exceed the revenue it can realistically recover?
Desalination plants use a lot of energy and require intensive treatment, which makes the costs higher than conventional water supply methods. Public authorities need to test projected demand, energy use, currency risks, tariffs, and the capacity of the distribution network before approving such projects. It is also critical to clarify who bears the risk if revenue falls short or costs rise. Without this, the utility can struggle to pay the operator, and unpaid obligations may eventually fall on the public purse.
Despite the financial concerns, residents reported better access to water while the plant operated. Some linked this improved access to better household sanitation. A reliable water supply can reduce the time and money spent on fetching water and support healthier living conditions. Still, other voices raised doubts about supply interruptions, affordability, problems with distribution infrastructure, and the taste or salinity of the water supplied.
The research advises careful investigation and transparent publication of water quality tests. Residents’ perceptions alone cannot confirm whether the water met safe standards. After all, a water project must be judged by what reaches the household tap. Continuous supply, verified quality, affordable prices, and quick responses to complaints define whether the public truly benefits.
Consumers have a role in oversight. Clear service benchmarks, open complaint channels, and regular public reporting help regulators and utilities spot problems early. Community feedback should inform decisions alongside financial and technical data.
The study draws lessons for Ghana and countries seeking private investment in infrastructure. Authorities must get independent technical, financial, and legal advice before approving projects, especially unsolicited ones. They should test affordability under tough but plausible scenarios, including currency depreciation and rising energy costs. Contracts need measurable service standards and clear dispute resolution procedures to avoid supply interruptions. Ministries, utilities, and regulators must have the expertise and authority to monitor performance throughout the contract’s life.
Water projects financed through partnerships don’t end with construction. The public obligation lasts. Contracts must remain affordable. Institutions must stay capable. The water must keep flowing.
For Ghana, success means a project that the state can afford and that delivers safe, reliable, and affordable water to the people it was built to serve.
According to Joy Online.
