Ghana Water Proposes 280% Tariff Hike, Cites Galamsey Pollution as Costs Soar
Ghana Water Company Limited (GWCL) has proposed a 280% increase in water tariffs to the Public Utilities Regulatory Commission (PURC), warning that failure to approve the hike could lead to operational shutdowns.
The company attributes the steep rise to skyrocketing production costs driven by widespread pollution from illegal mining, known as galamsey.
GWCL explained that polluted rivers and streams, particularly in mining areas like Dalun and Nawuni, have significantly increased the need for treatment chemicals such as alum and lime due to high turbidity levels.
This pollution causes frequent equipment damage, siltation of intake sumps, and high sludge generation, further straining operations. For instance, the Bonsa Headworks in Tarkwa was shut down in January 2025 due to severe pollution of the River Bonsa.
Michael Klutse, GWCL’s Chief Manager of Corporate Planning, noted that the company’s chemical costs have surged by over 200% since 2022, with an estimated GH¢336 million needed for chemicals this year alone. The company also faces new loan repayment obligations, adding nearly GH¢488 million annually to its expenses.
Ken Ashigbey of the Ghana Chamber of Telecommunications urged a “polluter pays” approach, targeting areas heavily affected by galamsey to curb environmental damage and promote accountability. The PURC is reviewing GWCL’s proposal alongside other utility tariff requests, with stakeholder discussions ongoing.
