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Republic of Ghana Ministry of Local Government and Rural Development NATIONAL STRATEGY FOR HOUSEHOLD WATER TREATMENT AND SAFE STORAGE PRIVATE SECTOR PARTICIPATION

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Published by , 2016-02-07 07:42:03

National Strategy for Household Water Treatment and Safe ...

Republic of Ghana Ministry of Local Government and Rural Development NATIONAL STRATEGY FOR HOUSEHOLD WATER TREATMENT AND SAFE STORAGE PRIVATE SECTOR PARTICIPATION

Republic of Ghana

Ministry of Local Government and Rural Development

NATIONAL STRATEGY FOR HOUSEHOLD
WATER TREATMENT AND SAFE STORAGE

PRIVATE SECTOR PARTICIPATION
FRAMEWORK

May, 2014

TABLE OF CONTENTS

TABLE OF CONTENTS ...........................................................................................................................................1

LIST OF ABBREVIATIONS AND ACRONYMS................................................................................................3

ACKNOWLEDGEMENTS.......................................................................................................................................4

1 INTRODUCTION.............................................................................................................................................6

1.1 BACKGROUND FOR HWTS..........................................................................................................................6
1.2 BACKGROUND FOR PSP...............................................................................................................................6
1.3 CREATING AN ENABLING ENVIRONMENT FOR HWTS ..............................................................................7

2 OVERVIEW OF NATIONAL HWTS STRATEGY .....................................................................................8

2.1 GOALS AND OBJECTIVES..............................................................................................................................8
2.2 SPECIFIC OBJECTIVES ...................................................................................................................................8
2.3 GUIDING PRINCIPLES...................................................................................................................................8

3 IMPLEMENTATION ARRANGEMENTS.................................................................................................10

3.1 PRE-CONDITIONS FOR ENGAGING PRIVATE SECTOR ...............................................................................10
3.2 MEMORANDUM OF UNDERSTANDING......................................................................................................10
3.3 REGISTRATION AND CERTIFICATION ........................................................................................................10
3.4 MONITORING AND EVALUATION .............................................................................................................11

4 ROLES AND RESPONSIBILITIES OF PUBLIC SECTOR .....................................................................12

4.1 KEY PUBLIC SECTOR STAKEHOLDERS .......................................................................................................12
4.2 POLICY DEVELOPMENT AND REVIEW .......................................................................................................12
4.3 STANDARDS AND GUIDELINE SETTING.....................................................................................................12
4.4 TECHNICAL ASSISTANCE FOR TECHNOLOGY SELECTION ........................................................................12
4.5 MONITORING AND EVALUATION .............................................................................................................13
4.6 APPROVAL OF PPP PROJECTS AND CONTRACTS ......................................................................................13
4.7 KNOWLEDGE MANAGEMENT....................................................................................................................13
4.8 BEHAVIOUR CHANGE COMMUNICATION.................................................................................................13
4.9 ROLES UNDER THE NATIONAL PPP POLICY FRAMEWORK ......................................................................14

5 ROLES AND RESPONSIBILITIES OF PRIVATE SECTOR ..................................................................15

5.1 REGISTRATION OF LEGAL ENTITIES...........................................................................................................15
5.2 PRODUCT DEVELOPMENT .........................................................................................................................15
5.3 MARKETING...............................................................................................................................................15
5.4 TECHNOLOGY TRANSFER ..........................................................................................................................15
5.5 AFTER-SALES SERVICE...............................................................................................................................16
5.6 RESEARCH AND DEVELOPMENT................................................................................................................16
5.7 SUPPLY CHAIN...........................................................................................................................................16
5.8 FINANCING ................................................................................................................................................16

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6 TYPES OF HWTS ARRANGEMENTS .......................................................................................................17
6.1 BACKGROUND ...........................................................................................................................................17
6.2 PRIVATE SECTOR PARTICIPATION IN HWTS DELIVERY...........................................................................17
6.3 TECHNOLOGY DEVELOPMENT AND SERVICE CONTRACT........................................................................17
6.4 COMMERCIAL CONTRACTS .......................................................................................................................18
6.5 FRANCHISE ARRANGEMENTS....................................................................................................................18
6.6 JOINT VENTURE .........................................................................................................................................18
6.7 PUBLIC-PRIVATE PARTNERSHIPS ..............................................................................................................18

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BaSIS - LIST OF ABBREVIATIONS AND ACRONYMS
BCC -
CWSA - Basic Sanitation Information System
EHSD - Behavioural Change Communication
FDA - Community Water and Sanitation Agency
GoG - Environmental Health and Sanitation Directorate
GSA - Food and Drugs Authority
HWTS - Government of Ghana
HWWS - Ghana Standards Authority
IEC - Household Water Treatment and Safe Storage
JMP - Hand Washing with Soap
LGPCU - Information, Education and Communication
MDAs - Joint Monitoring Programme
MLGRD - Local Government Project Coordinating Unit
MMDA - Ministries, Departments and Agencies
MoF - Ministry of Local Government and Rural Development
MoH - Metropolitan, Municipal and District Assemblies
MWRWH - Ministry of Finance
NGOs - Ministry of Health
PAC - Ministry of Water Resources, Works and Housing
PAU - Non-Governmental Organizations
PDF - PPP Approval Committee
PFA - PPP Advisory Unit
PID - Projects Development Facility
PPP - Project and Financial Analysis
UNICEF - Public Investment Division
WASH - Public-Private Partnership
WHO - United Nations Children‟s Fund
WRC - Water, Sanitation and Hygiene
World Health Organization
Water Resources Commission

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ACKNOWLEDGEMENTS

The Ghana Government through the Ministry of Local Government and Rural
Development is grateful to all organizations and individuals who contributed in diverse
ways to the preparation of this strategy document.

The ministry is grateful to the United Nations Children‟s Fund (UNICEF) for funding
the project. We acknowledge the Consultants, Marion Kyomuhendo - for providing the
original assessment and initial drafts of the Household Water Treatment and Safe
Storage (HWTS) Strategy; and Stephen Ntow - for the technical inputs during the
validation workshop and final revision of the HWTS Strategy.

The HWTS Technical Working Group members who guided the process of developing
this strategy included Patricia Buah of the Water Directorate (WD) of the Ministry of
Water Resources, Works and Housing (MWRWH) and Kweku Quansah of the
Environmental Health and Sanitation Directorate (EHSD) of the Ministry of Local
Government and Rural Development (MLGRD) who co-chaired the Technical Working
Group; Ebenezer Aidoo and Odartei Lamptey of Precision DX, Araba Sam Annan of
Vestagaard Frandsen, Joyce Maku Appiah and Theodora Adomako-Adjei of the
Community Water and Sanitation Agency (CWSA), Vida Nyenku of EHSD/MLGRD,
Basilia Nanbigne and Ben Arthur of the Coalition of Non-Governmental Organizations
in Water and Sanitation (CONIWAS), Adam Thomas and Samuel Amoako-Mensah of
UNICEF Ghana.

We are also grateful to Mr. David Duncan, Chief of WASH, UNICEF Ghana and Naa
Lenason Demedeme, Ag. Director, Environmental Health and Sanitation Directorate
(EHSD) of the Ministry of Local Government and Rural Development (MLGRD) for
their administrative and technical support.

We are also grateful to the International Network on Household Water Treatment and
Safe Storage (INHWTS) for guidance and direction, especially to the co-hosts Mr.
Michael Akyeamfo Forson (WASH Specialist, UNICEF HQ, USA) and Dr. Margaret
Montgomery (Technical Officer, WHO, Geneva), and Ryan Rowe (Communication
Specialist of the Network) for their advice and providing the required „international‟
touch to this document, and the WASH Section of UNICEF HQ and WHO HQ for the
technical and administrative support.

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The final version of the national Household Water Treatment and Safe Storage (HWTS)
Strategy documents were put together by Harold Esseku and Joseph Ampadu-Boakye
of Rapha Development Consult. We are grateful to them for collating and putting
together all the comments and suggestions made by various stakeholders to come up
with the three documents comprising the Household Water Treatment and Safe Storage
(HWTS) Strategy for Ghana together with a Scale-Up Model and a Private Sector
Participation Framework.
The three documents are namely:

 National Strategy for Household Water Treatment and Safe Storage (HWTS)
 National Strategy for HWTS - Scale-Up Model
 National Strategy for HWTS - Private Sector Participation Framework.
This document is the National Strategy for HWTS - Private Sector Participation
Framework.

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1 INTRODUCTION

1.1 Background for HWTS

Household Water Treatment and Safe Storage (HWTS) significantly reducesthe burden
of diarrhoeal and other related diseases which impacts positively on the health status of
people especially children. Only one out of ten households in Ghana treats water before
drinking. Perhaps more significantly, only 17% of households that fetch drinking water
from unimproved sources treat their water before drinking1. The concomitant effect is
the high prevalence of water related diseases. Contaminated drinking water contributes
to an estimated 10,000 deaths annually from diarrhoeal diseases and diarrhoea is the
fourth leading cause of child deaths in Ghana 2 . To address this challenge, the
Government of Ghana, working in partnership with its Development Partners, has
launched a national HWTS Strategy. The strategy defines the framework for
implementing HWTS in Ghana and acknowledges the critical role of the private sector
in its implementation. This document defines the Ghana government‟s framework for
formally engaging the private sector in implementing this strategy.

1.2 Background for PSP

The Government of Ghana acknowledges the critical role of the private sector in
national development.In this regard, the National Water Policy, National Health Policy
and National Environmental Sanitation Policy affirm government‟s commitment to
work in partnership with the private sector. The government has also launched a
National Policy on Public Private Partnerships3, which defines modalities for engaging
with the private sector as well as the roles and responsibilities of various stakeholders
in undertaking PPPs in Ghana. This Private Sector Participation framework is anchored
around the broad strategies and modalities for engaging with the private sector as
defined in these overall national policy documents. This document is, therefore, focused
on private sector actors who seek to formally contribute to HWTS scale-up under the
country‟s WASH programme. However, the document seeks also to facilitate the efforts
of other private sector initiative in HWTS.

1GSS (2013) Multiple Indicator Cluster Survey with an enhanced Malaria Module and Biomarker
2011. Ghana Statistical Service, Accra.
2http://www.apromiserenewed.org/Dashboard.html

3National Policy on Public Private Partnerships

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1.3 Creating an Enabling Environment for HWTS
In addition to the development of the national strategy, the government is developing
key related operational guidance documents, including this document, to facilitate the
scaled up implementation of HWTS in the country.
Government will further develop national standards and guidelines for safe drinking
water at the point of use and for assessment of HWTS products. These will include, but
not be limited to, benchmarks on HWTS in line with guidelines issued by Metropolitan,
Municipal and District Assemblies and regulatory bodies such as the Ghana Standards
Authority (GSA) and the Food and Drugs Authority (FDA), as well as global best
practices. The government will create a certification and product labeling system so that
consumers can make informed decisions and choices in acquiring new HWTS products.
Additionally, government will explore the potential for reducing prohibitive tariffs,
taxes (through a holistic tax approach) and other costs on imported HWTS products in
order to facilitate the entry of appropriate technologies not available in Ghana
currently. This will ensure affordability of HWTS products among the target
population, especially the poor.
The Government of Ghana will also work in partnership with academia and the private
sector to identify technology options to address the need for effective and affordable
point-of-use drinking water treatment e.g., filtration, coagulation, flocculation prior to
boiling, or disinfection, and also to satisfy the quality requirements for other, non-
drinking water purposes.

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2 OVERVIEW OF NATIONAL HWTS STRATEGY

2.1 Goals and Objectives

The goal of the National HWTS Strategy is to contribute to achieving improved health
for all by 2025. This goal will be achieved by pursuing sustainable and effective
promotion and adoption of HWTS as a behaviour and through the use of appropriate
technologies that make drinking water safe at the point of use. The private sector is
expected to play a key role, in partnership with the public sector in pursuing the
implementation of this strategy.

2.2 Specific Objectives

The specific objectives of HWTS strategy in Ghana are to ensure that by 2025:
 The entire population in all regions are aware of HWTS;

 90% of the entire population have adequate knowledge about the use and benefit
of HWTS in reducing WASH related diseases;

 75% of entire population consistently practice safe HWTS methods consistent
with their environment and drinking water situation.

In achieving these broad targets, government recognises the important role of the
private sector and seeks to create an enabling environment that ensures that the private
sector is incentivized to support the citizenry with affordable and effective HWTS
technologies, products, services and options.

2.3 Guiding Principles

Implementation of the National HWTS strategy is underpinned by the following
principles which are embedded in existing government policy documents including the
National Water Policy, National Health Policy and the Environmental Sanitation Policy:

 The principle of partnerships, leveraging both private and public sector
resources for planning and implementing HWTS;

 The principle of adopting an integrated approach, recognizing HWTS as part of
an integrated approach to primary health care;

 The principle of guaranteeing the fundamental rights of all people without
discrimination to safe and adequate water to meet their basic human needs;

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 The principle of achieving equity and gender sensitivity in planning and
implementing HWTS;

 The principle of subsidiarity in order to ensure participatory decision making in
planning and implementing HWTS at the lowest appropriate level in society;

 The principle of the greatest common good to society in developing appropriate
technology and strategies in- promoting HWTS.

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3 IMPLEMENTATION ARRANGEMENTS

3.1 Pre-Conditions for Engaging Private Sector

The Ghana Government recognises the importance of engaging with private sector
entities that are legally registered and have the required permits and approvals to
transact businesses in Ghana. It is expected that prospective private sector entities shall,
at a minimum, obtain the following:

 A certificate of registration and certificate to commence business from the
Registrar General‟s Department;

 Relevant Tax Clearance Certificates (if applicable) issued by the Ghana Revenue
Authority; and

 Social Security National Insurance Trust (SSNIT) Clearance Certificate (if
applicable).

3.2 Memorandum of Understanding

Private sector entities which seek to formally participate in the HWTS programme in
Ghana shall be encouraged to develop and sign a Memorandum of Understanding
(MoU) with Metropolitan, Municipal and District Assemblies within whose jurisdiction
they intend to operate. These MoUs shall be endorsed by the Environmental Health and
Sanitation Directorate at the regional and national levels, after all other pre-conditions
have been met, and based on a technical appraisal of their products and services. The
MoU shall clearly spell out the roles and responsibilities of each party and further
define modalities for conflict resolution and termination of the agreement where
necessary.

3.3 Registration and Certification

HWTS products and services that are developed will require appropriate registration
and certification in order to ensure it meets standards for safety and quality. At a
minimum, products and services shall, be subjected to the WASH Tech assessment
framework to determine their appropriateness for the specific intended application in
Ghana. In addition, products and services will require internationally accepted ISO
certification and endorsement by the Ghana Standards Authority and Food and Drugs
Authority.

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3.4 Monitoring and Evaluation
A Monitoring and Evaluation Plan, adopting the appropriate indicators that dovetails
into existing frameworks for monitoring and evaluation being used in the WASH
sector, will be prepared for implementation. This plan will have key benchmarks for
measuring private sector initiatives in the development and uptake of HWTS services
and products in the country.
A review of existing monitoring and evaluation platforms across the various WASH
sub-sectors including rural and small towns water (DiMES) and environmental
sanitation sub-sector (BaSIS/MiNTESA) will be undertaken to include specific
indicators on HWTS. The current sector information system under development will
incorporate key indicators on HWTS, including indicators which will measure the
involvement and impact of the private sector, as well as sustainability of services.

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4 ROLES AND RESPONSIBILITIES OF PUBLIC SECTOR

4.1 Key Public Sector Stakeholders

Selected public sector organisations have a key role to play in the implementation of the
PSP strategy. The key roles to be performed by the public sector include the following:

4.2 Policy Development and Review

The Ghana Government, through the relevant Ministries, Departments and Agencies
including the Environmental Health and Sanitation Directorate of the Ministry of Local
Government and Rural Development, Community Water and Sanitation Agency,
Ghana Water Company Limited and Metropolitan, Municipal and District Assemblies
will develop and implement relevant policies and initiatives that support the uptake of
HWTS services and solutions. These measures will include strategies to provide
targeted support services including credit schemes to trigger demand for and use of
HWTS products and services. At appropriate time schedules, these policies shall also
be reviewed by the relevant agencies to address emerging trends and concerns.

4.3 Standards and Guideline Setting

The Ghana Government will develop national standards for safe water supply at the
point of use and for assessment of HWTS products. These will include, but not be
limited to, benchmarks on HWTS and with reference to best practice guidelines issued
by Metropolitan, Municipal and District Authorities (MMDAs) and regulatory bodies
including Ghana Standards Authority (GSA), Food and Drugs Authority (FDA) among
others. Government will also create a certification and product labeling system to be
administered by the Ghana Standards Authority so that consumers can make informed
decisions and choices in acquiring new HWTS products.

4.4 Technical Assistance for Technology Selection

The EHSD will work in close collaboration with the relevant institutions to promote and
accelerate the uptake of HWTS products and services in the country. Where appropriate,
EHSD will leverage support from private sector entities who offer HWTS products and
services. The EHSD will support technology uptake and serve as a facilitator where
necessary, between the private sector entities and government institutions for the
development and approval of appropriate technologies for enhanced HWTS delivery in

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the country. The EHSD will work in collaboration with the Ghana Standards Authority
on the regulation and certification of appropriate HWTS products and services.

4.5 Monitoring and Evaluation

The Ghana Statistical Service shall conduct periodic surveys on HWTS knowledge,
practices and attitudes. The results will provide a basis for assessing progress towards
achieving the targets of HWTS strategy. Metropolitan, Municipal and District
Assemblies (MMDAs)will be responsible for monitoring and evaluating all components
of the HWTS strategy including private sector participation within their respective
areas of jurisdiction.

4.6 Approval of PPP Projects and Contracts

The General Assembly of the MMDAs, through a formal session, shall be the approving
authority for PPP projects carried out by MMDAs if it falls within their approval
threshold. The approval thresholds will be periodically revised by the Ministry of
Finance. The other approving entities are the PPP Approval Committee, Cabinet and
the Parliament of Ghana.

4.7 Knowledge Management

The Environmental Health and Sanitation Directorate shall leverage existing sector
learning platforms including the National Level Learning Alliance Platform to
document and share results on progress in involving the private sector in the
implementation of the HWTS Strategy. Where available, district level platforms will
also be utilized to engage sector stakeholders at the district and sub district levels.

4.8 Behaviour Change Communication

The Ghana Government, working through the EHSD and other stakeholders, shall
develop and disseminate high-quality communication materials including print and
electronic material to promote attitudinal change for HWTS solutions, leveraging
private sector support in the process. The contents of HWTS communication will
provide users with necessary information to make informed choices.

Government will explore opportunities to integrate IEC materials on HWTS with other
health and sanitation communication efforts to reinforce health and hygiene

13

behavioural change messaging and achieve maximum impact. A national campaign will
also be launched to promote HWTS.

In the main, the behaviour change communication component of HWTS promotion
initiatives will be carried out in an integrated manner with other on-going sanitation,
and hygiene promotion initiatives (e.g. CLTS post-triggering with HWWS). These
promotional aspects would generally be carried out through formal EHSD led
mechanisms at decentralized level.

4.9 Roles under the National PPP Policy Framework

Institutions playing key roles in PPP arrangements in Ghana according to the PPP
Policy are the following:
 The Ministry of Finance through relevant divisions/units, including:

 Public Investment Division
- The Project and Financial Analysis (PFA) Unit
- The PPP Advisory Unit (PAU)

 Debt Management Division
 The Budget Division
 The Legal Division
 The National Development Planning Commission
 Government Contracting Authorities (Ministries, Departments and Agencies
andMetropolitan, Municipal and District Assemblies)
 General Assembly of Metropolitan, Municipal and District Assemblies
 Public Procurement Authority
 Ministry of Trade and Industry/Ministry for Private Sector
 Cabinet of Ghana
 Parliament of Ghana
 PPP Approval Committee
 Attorney General‟s Department
 Regulatory Authorities (e.g. Public Utilities Regulatory Commission, Water
Resources Commission, Ghana Standards Authority, Community Water and
Sanitation Agency etc.)

The roles and responsibilities of these institutions are defined in the National PPP
Policy which shall be referred to if a specific PPP initiative is to be undertaken for the
delivery of HWTS services or products in the country.

14

5 ROLES AND RESPONSIBILITIES OF PRIVATE SECTOR

5.1 Registration of Legal Entities

Prospective and existing private sector entities interested in contributing to HWTS
scale-up under Ghana‟s WASH programme would have to be registered under the
appropriate laws of Ghana in order to be recognised as legal entities and eligible to
conduct business in Ghana. In addition, they must fulfill all essential tax obligations to
the State.

5.2 Product Development

The private sector, working in partnership with the public sector, is expected to develop
and deploy effective and appropriate HWTS solutions (products and services) and
technologies that respond to the needs and preferences of people in Ghana. As much as
possible, government will support initiatives that leverage partnership with relevant
public sector institutions to introduce appropriate and affordable HWTS solutions for
widespread adoption.

5.3 Marketing

The private sector is expected to adequately assess and determine the market size for
the various HWTS products and services and develop effective marketing strategies to
promote their adoption and usage. Through interface with relevant public sector
agencies, government will provide relevant information on various market segments to
enable widespread adoption and utilization.

5.4 Technology Transfer

In the development of appropriate HWTS solutions, the private sector is expected to
transfer appropriate knowledge and skill capability to the workforce, including staff of
the relevant departments at the decentralized level where necessary, and community
level WASH structures (WSMTs, natural leader groups etc.). This is expected to create a
critical mass of skilled labour needs to further develop and refine HWTS solutions for
widespread adoption, as well as provide a means of on-going technical assistance to
user communities, especially in hard-to-reach areas. The private sector will be
encouraged to sign cooperation agreements with relevant training institutions to

15

develop capacity and skills through selected avenues including internships and on-the-
job training.

5.5 After-Sales Service

To promote the consistent use of appropriate HWTS products and services, the private
sector is expected to provide timely after-sales support services to individuals and
institutions. Government will ensure that HWTS products and services developed are
backed by an elaborate programme to provide after-sales support at designated points
for consumers to access these services.

5.6 Research and Development

The private sector is expected to invest in research, development and deployment of
effective and appropriate HWTS solutions that create opportunities for reducing costs
and ensuring sustainability of HWTS technologies. As much as possible, government
will support investments in relevant research that leverage partnerships with
appropriate public sector institutions and academia.

5.7 Supply Chain

The private sector is expected to develop supply chains that guarantee improved access
and reliability in the supply of HWTS products and services, leveraging existing human
and other resource potentials in Ghana. These will also cover after-sales user support, as
well as, outlets to ensure the ready availability of rapidly wearing parts and
consumables.

5.8 Financing

In general, HWTS initiatives based on the direct subsidization of products will not be
encouraged. The private sector is expected to develop and implement innovative
financing products including micro-credit schemes to support the uptake and use of
HWTS products and services. Where there are existing local credit schemes like Credit
Unions and local savings organizations locally known as “Susu”, efforts shall be made
to establish appropriate liaison between citizens and the local credit schemes to enable
acquisition of HWTS products and services.

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6 TYPES OF HWTS ARRANGEMENTS

The content of the specific arrangement for engagement under the WASH programme
in Ghana will be based mainly on the roles and responsibilities defined in chapters 4
and 5 above.

6.1 Background

There are varied types of PSP arrangements that could be entered into by MMDAs for
the delivery of HWTS. The different arrangements are to be selected based on the
specific needs of a district and the capacity or resources of the private sector entity. A
number of these arrangements have been suggested below.

6.2 Private Sector Participation in HWTS Delivery

In instances where a private entity has developed its own HWTS technology and/or
service and will like to adopt this in given communities, they would have to enter into
an agreement with the MMDA (as noted in Section 3 above). The MMDA will serve as a
regulator to ensure that the technology and/or services deployed meet the required
standards set by the approving authority e.g. Ghana Standards Authority or Food and
Drugs Authority. The MMDA will ensure that the pricing of the facilities or services are
reasonable and the private entity makes reasonable profit and the users are not
burdened such that they would revert to old sources which were considered unsafe.

6.3 Technology Development and Service Contract

This arrangement involves the public sector comprising a partnership between a
MMDA and a tertiary institution or other interested entities, public or private,
developing and testing of appropriate technologies for HWTS. The technologies which
would involve the supply of some components periodically i.e. alum, ceramic filters or
other material or substance, will be initially supplied by the MMDA and/or the private
entity through pre-arranged agreements. The technology will be marketed by the
private entity. The private entity will be responsible for the continuous supply of the
component and shall maintain a database of beneficiaries and ensure they always have
an adequate supply at a fee which is set and reviewed periodically by the MMDA. The
private entity could be engaged to provide skills training or to transfer technology on
HWTS products, technologies and solutions.

17

6.4 Commercial Contracts

The private sector can be engaged on contract to develop specific HWTS products or to
provide services. Where appropriate, the details of these contracts including the
duration of the contracts and inputs from both the public and private sectors shall be
clearly defined in contract agreements.

6.5 Franchise Arrangements

Government could engage the private sector through franchise agreements to perform
or deliver specific HWTS services over a period of time. Where appropriate, such offers
will be conveyed in agreements that define performance standards, rewards and
penalties and modalities for assessing performance of agreed services.

6.6 Joint Venture

This arrangement involves the private entity and the MMDA providing the delivery of
HWTS equipment and solutions to individual households and institutions in a given
community. The private entity and the MMDA have the common purpose of ensuring
water used at the point of consumption has not been contaminated during transport
and storage. The investment is shared with the private entity providing technical
solutions and the MMDA providing the relevant Information, Communication and
Education (IEC) for behavior change. The private entity and the MMDA shall share,
profits, losses and control of the operations. The amounts paid by individuals or
institutions shall be set by the MMDA such that the revenue accrued shall be adequate
for the provision of the hardware by the private entity and the software by the MMDA.

6.7 Public-Private Partnerships

The private sector can enter into partnership with appropriate public sector
organisations to provide HWTS products and services. Where appropriate, these
partnerships shall be covered by appropriate legal and contractual agreements to clarify
roles and conditions for termination of such agreements.

In all instances, the rates for the various HWTS facilities to be provided under the PPP
arrangement should be included in the approval to be granted by the General Assembly
of the MMDA. For the delivery of HWTS, there are no assets belonging to government
or public assets to be provided. The HWTS assets to be provided are for individual

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