IMPROVING WATER TARIFF PAYMENT IN RURAL AND PERI-URBAN COMMUNITIES CONNECTED TO URBAN WATER SYSTEMS IN NORTHERN GHANA

ABSTRACT

In Ghana, despite the implementation of pro-poor models to make potable water affordable to small towns and rural communities, there are still cases of extension of urban water services at cost recovery-based tariff conditions to such communities. This defeats the aims of improving affordability and accessibility to safe water to low-income communities. The main objective of this study was to explore stakeholder roles in the improvement of water tariff payment in rural and peri-urban communities connected to urban water systems in northern Ghana. A sample of 386 households was selected from the Northern and Upper East Regions, and the concurrent triangulation design adopted for the study. It was revealed that no differentiated tariffs were set for rural and peri-urban communities connected to the urban water systems for the purpose of improving tariff payment. The Public Utilities Regulatory Commission regulates water tariffs and there was no authentic participation of rural and peri-urban communities in the tariff determination process. However, Ghana Water Company Ltd. collaborates with Community Water Committees basically to improve tariff collection. Logistic regression test results also indicated that tariff level, service quality and income were significant predictors of willingness to pay for water. However, generally, urban respondents were more willing to pay for water than rural and peri-urban respondents were. This study concluded that subsidisation of tariffs and poverty reduction schemes for women could improve water tariff payment in rural and peri-urban communities connected urban water systems.