Cost overruns press World Bank to add $50m to $103m Ghana urban water project

The World Bank has approved an additional financing of $50 million to the Ghana government, as a supplement to the ongoing Urban Water Project being financed by the Bank with a $103 million grant.

The additional funds were approved by the Bank’s Board of Directors March 27, 2012.

“The facility will help to complete the original project activities that have suffered from unanticipated cost overruns and financing gap of about $42 million; and implement an additional lot of works that would scale up the project’s impact to deprived areas at a cost of $8 million,” said the World Bank in a statement copied to ghanabusinessnews.com.

Ventura Bengoechea, World Bank’s task team leader of the project said the additional financing will allow the project to “fully achieve and even exceed the targets” that were originally contemplated.

Specifically, the statement adds “the facility will fund outstanding works in the Brong Ahafo (Berekum) and Upper East Regions (Bawku and Navrongo), for which tender documents already exist. The Berekum works consist of boreholes, a potable water plant to remove iron and disinfect water, two elevated storage tanks and water distribution pipes. The Navrongo works consist of boreholes, a booster pump station, two elevated storage tanks and water distribution pipes. The Bawku works also consist of boreholes, a potable water plant, two elevated storage tanks and water distribution pipes.”

Some of the funds is expected to be used for the expansion and improvement in the Central Region to the Winneba water distribution network.

The additional works will consist of the rehabilitation and extension of water distribution pipes and the construction of a new elevated water tank and a booster pump station, the Bank indicated.

By Ekow Quandzie