Sierra Leone News: Guma shutdown Water Supply to Repair 50-year-old Pipes
By Stephen V. Lansana
The transmission pipes of the water utility company in western area, Guma Valley Water Company (GVWC) crumbed at least twice in a month.
The repairs on the damaged pipes is costing the company about Le24 million monthly, excluding treated water which is wasted as a result damaged pipes. There is no meter to record the actual loss Guma suffers in the wastage of water due to breakdown, but it is believed to be losing millions of Leones.
Guma yesterday shut down water supply to Freetown due to damage on the 18 inches transmission pipe at Mamba Village, Mile 13.
According to Guma, the shutdown is to enable their technicians to take immediate action to repair the damage. The management regrets any inconveniences this unfortunate incident may cause.
Also, on August 2, 2019, Guma Valley shut down water supply to Freetown due to damage on the 22 inches transmission pipe at Angola Town. This shutdown was restored two days after.
According to a source who preferred anonymity, the utility company usually has at least two breakdown per month, adding that it cost Guma about Le 12 million to repair each breakdown. “The Guma pipes are over 50 years and they need to be changed. But Guma valley does not have money to change the over five decade old pipes,” the source added.
Guma Valley Water Company has made an application to the Electricity and Water Regulatory Commission (EWRC) for increment in tariff which should have been effective on August 1, 2019, after the proposed public hearing on July 31, 2019. But the public hearing was postponed for a week which is expected to hold on August 13.
Guma is unable to invest adequate resources in its operations to meet the increase in demand for water supply due to population growth in the western area as a result of low revenue generation.
Guma has one of the lowest tariffs in the sub region currently at two Leones fifty cents (Le 2.50c) per liter of water, whereas in Ghana or Senegal, it is Le 10.00 or more per liter of water.
The company’s mandate was expanded from 72 square kilometers (Sussex to Allen Town) under the repealed Guma Ordinance of 1961 to 557 square kilometers, covering the whole of the Western Area under the Guma Act of 2017, even though the utility is not subvented by government, and only generates revenue from water rates.
“The revenue currently generated by the company is insufficient to cover operations and maintenance cost. For instance, in 2018, operations and maintenance costs incurred by the Company was over Le23 billion and revenue collected from customers totalled Le 23 billion,” the source said. “This is a loss to the company.”
The last time Guma increased water tariff was in 2016, and for the past 3 years, inflation and exchange rates have increased the cost of production with no corresponding increase in revenue. The current tariff structure is inflexible and not linked to major macroeconomic indicators e.g. Inflation, exchange rates, etc.
The Chemicals such as Chlorine, Alum, Lime, and other key materials used by the company are priced in foreign currencies and any weakening of the Leones against major currencies such as the dollar or pound further degrades the company’s ability to fund its operations.
According to the source, the rationale for the tariff increase is for Guma to be able to meet its operation and maintenance costs, facilitate reduction in leakages through extensions of the distribution network which will result in an increase in the volume of water available for distribution to about 200,000 people, create a more viable institution and provide a more reliable and sustainable service to its customers.
The Guma tariff application to the Electricity and Water Regulatory Commission (EWRC), according to the source is within the framework of the following policies, Sector Legislation and Policy implementation strategies such as The National Water and Sanitation Policy 2011, The National WASH Implementation Strategy 2011, The Agenda for Prosperity — Road to Middle Income Status (2013–2018), The Electricity and Water Regulatory Commission Act 2011, The Local Government Act 2004 and consistent with the provisions of Section 12 (3) of The Guma Valley Water Company Act 2017, which stipulates that the Company shall perform its functions with a view to provide its services in an efficient and economic manner, taking into consideration all national plans adopted under any national water and sanitation policy, and the economic, social and developmental policies of the Government.
