Policy on Private Water Sales in Rural Ghana

Abstract

This paper examines strategies for forming public‐private sector partnerships in order to improve the distribution of water in rural areas in Ghana. The options explored include: (1) An outright sale of the existing government‐controlled water corporation; (2) setting up decentralized regional water utilities; (3) maintaining the existing central authority but contracting out services to the private sector; (4) charging user fees for water services based on the cost of producing and distributing the water; and (5) encouraging private and community‐level institutions to participate in the water market. Based on a limited case study, the paper finds a wide disparity between public and private prices of water, which points to a need for more‐rigorous pilot programs and studies to further explore alternatives for public‐private partnerships in the Ghana water sector.