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Ghana, 2018: Union criticises cost of Befesa desalination plant

Union criticises cost of Befesa plant, Ghana

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In November 2018, Ghana's Trades Union Congress (TUC) called for the costs of the Befesa desalination plant not to be passed on to consumers, as reported by the Ghana News Agency (GNA). According to the TUC, the agreement cost Ghana Water Company Limited (GWCL) 1.42 million US dollars per month in capacity charges alone. The plant was commissioned in 2015 under a build-own-operate-transfer water purchase agreement with Befesa Desalination Development Ghana Limited. The TUC also proposed a further 15 percent cut in electricity tariffs and a 12 percent cut in water tariffs.

The report showed how long-term offtake contracts with fixed capacity charges can weigh on a public utility, and how quickly the cost of a desalination plant becomes part of the tariff debate.

Source: Ghana Business News

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