Finance for long-term sustainability of small towns piped water services: the case of Ghana

Financing of small towns piped water services is critical to ensure the long term sustainability of the services provided. Tariff determination details have been outlined in the national guidelines for small towns water delivery. However, a study on a number of the systems in Ghana indicates strong emphasis on funds generation mainly through the sale of water without corresponding attention to efficient and effective management of the funds for long-term sustainability. Some small towns piped water services barely break even and struggle to reach their design life. There is then a sharp decline in service level due to their inability to expand/upgrade their capacity to meet growing demand for from increasing populations. The authors have explored the evolution of post-project financing and have identified a serious gap in keeping a capital maintenance/replacement fund. Refocusing on efficient financial management and transparent governance systems for judicious utilisation of the funds is recommended.