Parliament has approved a loan of €74.15 million to finance the Tarkwa water supply project in the Western Region.
The facility is made up of 65 million euros for the commercial contract and associated insurance of 9.15 million euros as an export credit guarantee.
Objective of the project
The project aims to expand access to clean water for residents of Tarkwa and its neighboring communities by increasing the capacity of Bonsa’s existing water supply system and expanding access to neighboring communities.
It will increase the capacity of the existing water supply system from 2,800 cubic meters per day to 27,000 cubic meters per day to meet the current demand of 15,000 cubic meters, as well as the projected water demand for the municipality. until 2040.
The motion to approve the loan was moved by the chairman of the parliament’s finance committee, Kwaku Kwarteng, and seconded by the committee’s ranking member, Dr. Cassiel Ato Forson.
Mr. Kwarteng, who read the committee’s report before the loan facility was approved, said that after careful consideration of the agreement, the committee was confident that the facility, once approved, would help broaden the access to water in Tarkwa and its watersheds.
Dr Forson, in his presentation, said that although the terms of the loan were favorable, the problem was with the insurance component.
He therefore asked the government to work on the insurance aspect to ensure the optimization of resources.
The ranking member further said that the high insurance premium covering the loan was the result of the country’s low credit rating in the international market and proposed the government to put in place policies and programs to address this. the situation.
Contributing to the motion, works and housing committee chairman Isaac Kwame Asiamah said the government’s intention to secure the credit facility was to extend the water supply system in Tarkwa to fill gaps in water supply and demand in Tarkwa. and its surrounding communities.
The project, he said, was in line with the government’s policy to ensure access to safe drinking water for all by 2030, in line with the sixth sustainable development goal.
Mr Asiamah said the existing Bonsa water treatment plant, which was built in the 1970s, had not been rehabilitated and expanded to meet the area’s ever-increasing water demand. supply and, therefore, the members of the Chamber must approve the loan for the project. to take off.
Western Regional Minister Kwabena Okyere Darko-Mensah, who is the MP for Takoradi, on his part said that the project will be a game-changer in water supply for the people of Tarkwa and its environs.
He said Tarkwa was the capital of Tarkwa Nsuaem Municipality in the Western Region, with a population of around 90,477.
The municipality was expected to experience rapid population growth as Tarkwa continued to discover greater potential for socio-economic growth.
He said the expansion of the water supply system would help meet the current demand for drinking water and beyond.
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