Welcome to H20 Weekly

Welcome to H2O Weekly

Issue # 006

H2O Weekly is an on-line publication that announces publications, policies, and activities about the world’s water on a weekly basis. A full article is followed by other brief headings are followed by links that will take you to the complete article you are interested in.

Created & Published by Lorne Haveruk C.I.D., C.I.C., C.L.I.A

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Weekly Water Events
1. Ghana Water Privatization, By: Frank Q. Antwi-Barfi, (edited)
2. IMF-World Bank-WTO Coherence: the Implications for Water Privatization
3. Fight the Water Grab in Northern California!

4. Water Privatization Overview

5. Bolivia's War Over Water
6. Critical issues in water policy across Europe

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1. WATER, in a generation or two from now, will be one of the most important commodities in the world! And Lake Volta is one of the largest fresh water bodies in the world and will probably become more important than oil and countries could go to war for. Why then would anybody in his or her right mindset take an awful serious decision for future generations lightly? Woe unto any Ghanaian Leader who will instigate the transfer of our quantified water supply to the control of few and especially foreign investors. How dare any Ghanaian, elected or non-elected, profess to have the authority to sell one of the necessities of LIFE (Water, Air and Sunshine). STUPID!
BACKGROUND:

Out of the Economic Structural Adjustment Program, (collaboration between the World Bank Group and the Government of Ghana, came the belief that the Ghana National (People) Assets under the ownership and the management of the central government (PUBLIC) had locked up most of Ghana’s capital (worth). If named assets were sold, that is transferred to the people, then the Government of Ghana could free the dead capital trapped within.

However, the mistake some shortsighted Public Officials have made, is their inability to differentiate between public and private. The Government of Ghana, which is the PUBLIC, is comprised of all Ghanaians and Ghanaian Entities. The PRIVATE sector is comprised of Ghanaian individuals, (PEOPLE) outside the Institution of Government. Any rights not expressed in the Constitution of Ghana is reserved by the people.

Since the Government of Ghana is the Government of the people, then the people should have the first refusal for purchasing and controlling their own water system. It is ridiculous to suggest that the problem of water supply system is money. Rather it is the lack of understanding as to how to finance Municipalities Capital Improvements.

Now the question is: Can the Ghanaian who consumes the water afford to purchase the water system from the government and maintain the system financially? Yes, of course!! Who has been paying for that all these years? Mismanagement is not equal to poverty!

How would the consumers come up with the money to purchase (or takeover) this precious national natural resource from our Government?

Simple! The same way the water consumers such as those of the United States communities finance their water supply system and pay for the quantity consumed, through the combination of bonds for capital improvements, property tax, and user fees to support and maintain the system. Let us get the money from the market place of capital.
Makola Market Versus Ghana Stock Market

Ghana Stock Exchange is a market place where ownership rights to properties are bought and sold; that is, property is exchanged without having the physical property present. Unlike the Makola Market, which most Ghanaians are familiar with, it is an exchange arena where the actual physical property is bought and sold. The latter inhibits the transient attributes of capital and the size of financial capital. Ghana Stock Exchange needs an infusion of new listing issues (Companies). It seems this generation of Ghanaians is missing a great opportunity to spread the worth of the Nation. I must stress that I do not believe that the lack of creating economic prosperity has been done with any malicious intent on behalf of our past or present Governments.

Rather, Ghana’s inability to unleash the huge Dead Capital (to borrow Hernando De Soto’s words) that is locked out of formal economic activities is due, in great part, to an antiquated, non-existing and/or fragmented process of property rights without meaningful enforcements and verifications. There are billions of dollars of Dead Capital untapped in Ghana and it is the job of GSE, in collaboration with Divestiture Implementation Commission (DIC) to tap into this capital.

There is a lack of understanding of the missions of the DIC and the GSE. The logical market place for the DIC to sell the Ghana Government’s assets was, and is, the GSE. Through a series of Initial Public Offerings (IPO) some of the employees could have used portions of their savings and/or pension to acquire ownership (an example of capital development). Another example, the fish wholesalers could have come together to acquire shares of the Tema Cold Storage Corporation. If the DIC had comprehended its mission, there would not have been questionable loan transactions by some of the buyers of Ghana’s assets and then turn around to dismiss the employees and dismantled the factories for profit. Now the challenge to the NPP Government, DIC and GSE is how they go about divesting or privatizing the WATER SYSTEM in Ghana. (Both the NDC’s “Vision 2020” and the NPP are on the record for privatizing water in Ghana. The Government wants to pull her investment capital out of the water system. The market place of capital is a perfect arena for such exercise. GSE should handle the transaction, which should be packaged by the DIC by spreading out the value to all urban real estate property owners who have water meters.

An example: Let us say there are 400,000 homes in the urban areas of Ghana, and with average value per home of $10,000, which they are all paid for with no lien. This amounts to $4 billion dead capital. Therefore the Government should require each of these homeowners to take 5 percent ($500) each out of their home equity, totaling $200 million to buy out the Government. Through bond financing the communities, like the adopted ones we live in (Overseas), have created (or extract) capital to finance our streets, our schools, buy fire trucks and so on.

How would the homeowners pay back the $500 Bonds? With 6 per cent interest per year (plus the cost of living indexing) for 20 years would amount to less than 30,000 cedis per month or under 18,000 cedis for servicing the interest only. The owner could pay the interest on the bond monthly along with the water consumption fees. Besides those Bonds could be traded on the Ghana Stock Exchange. And do you realize what an infusion of $200,000,000 will do for Ghana Stock Market and society as a whole plus 400,000 new customers? But you get the point! Creative Financing!

This is an example of leadership with vision. Furthermore, duplicate this formula for electricity and the Tema Oil Refinery. This will expand GSE’s employment many folds with good salaries. Let us have creative leadership! It is mind boggling to perceive that in the year 2002, Ghanaian minds cannot comprehend the basic Municipal Financing 101 to come up with extracting capital locally to finance water project; A commodity so essential to life.
WHAT IS THE HIDDEN ADENDA HERE?

The future generation of Ghanaians will never forgive or think kindly of anybody who would have a hand in giving away the control of a key ingredient for human (Ghanaian) survival. For an answer we have to look beyond the quick money the contractors and suppliers will make.

Ghana has almost reached the Decision Point of becoming a full-fledged member of HIPC. Ghana opted for joining the defamed group because Ghana reached a point in her economic history where her foreign income almost equals to Ghana’s foreign expenditure. Then, why should any foreign investor be interested in purchasing local assets whose consumers pay only with local currency? Are these new foreign investors going to put constraints on Ghana’s foreign exchange earning when the time comes to transfer their quarterly dividends?

WATER, in a generation or two from now, will be one of the most important commodities in the world! And Lake Volta is one of the largest fresh water bodies in the world and will probably become more important than oil and countries could go to war for. Why then would anybody in his or her right mindset take an awful serious decision for future generations lightly?
PREDICTION:

If the control of water in Ghana slips into the hands of foreign owners, then our fresh water could be shipped out of the country to raise hard currency to pay dividends to foreign shareholders.

Next, Akosombo Hydro electric power will be shut off to become a retainer of fresh water. Expected questions are, How would Ghana get electricity? If the price of water becomes more expensive than gas, then it will make sense to use the supply of Nigeria gas, which will be transported through the Proposed West African Pipeline to generate electricity in Ghana. If you are not a believer, then how is it that a West African Pipeline terminates in Ghana? Who will be the big consumers to make the pipeline project feasible?

My dear countrymen let us not be afraid to plan for Ghana but let us not fail to plan for Ghana!

http://ghanaweb.com/GhanaHomePage/features/artikel.php?ID=21828

Frank Q. Antwi-Barfi, Chicago, IL

2. IMF-World Bank-WTO Coherence: the Implications for Water Privatization

The debate over the privatization of water is very politically charged for two simple

reasons. First, water is a basic good—necessary and critical for human life and all

human endeavors. Therefore access to safe clean and affordable water is a moral

issue. Second, there is nothing benign about current attempts by the World Bank to

encourage, promote or otherwise facilitate the privatization of water in developing

countries.

http://www.coc.org/pdfs/coc/Coherence_Water.pdf
3. Fight the Water Grab in Northern California!

In 2002, Ric Davidge, an Alaskan entrepreneur and a former administrator in former President Ronald Reagan’s Department of the Interior, attempted to obtain water rights on the Gualala and Albion Rivers of northern California. Davidge has now resurfaced with a recycled scheme to grab the water of the Mad River and sell it to thirsty urbanites.

http://www.citizen.org/california/water/gualala/

4. Water Privatization Overview

A worldwide crisis over water is brewing. According to the United Nations, 31 countries are now facing water scarcity and 1 billion people lack access clean drinking water. Water consumption is doubling every 20 years and yet at the same time, water sources are rapidly being polluted, depleted, diverted and exploited by corporate interests ranging from industrial agriculture and manufacturing to electricity production and mining. The World Bank predicts that by 2025, two-thirds of the world's population will suffer from lack of clean and safe drinking water.

http://www.greendove.net/water

5. Bolivia's War Over Water

In early April the often-forgot country of Bolivia, tucked away in he Andes, grabbed the world's attention when the city of Cochabamba erupted in a public uprising over water prices. In 1999, following World Bank advice, Bolivia granted a 40 year privatization lease to a subsidiary of the Bechtel Corporation, giving it control over the water on which more than half a million people survive. Immediately the company doubled and tripled water rates for some of South America's poorest families.

http://www.democracyctr.org/waterwar/
6. Critical issues in water policy across Europe

Water Resources in Italy - The availability of water in Italy is quite high (980 m3/year

per person) but its distribution along the Italian peninsula is very uneven: abundant in the North and scarce in the South and on the main islands. The major water problems are related to the agricultural sector, which is responsible for 46% of the total water consumption and often has a strong negative impact on its quality. Especially in the North, flood-control infrastructure has heavily modified the main water courses.

http://assets.panda.org/downloads/wwiitaly.pdf_

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Thanks for reading and have a great day -eh!

Lorne Haveruk C.I.D., C.I.C., C.L.I.A
Editors, H20 News
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