Respondents for the interviews were selected from the districts using purposive sampling. This non-probability and non-representative sampling technique was adopted because it allowed the interviewers to focus on particular characteristics of the study population to meet the research objectives. Data was collected on all 16 WSMTs managing small town systems serving more than 2,000 users in the districts. This is because in the rural water sub-sector of Ghana, small towns are defined as communities with population between 2,000 and 50,000 [14], [18]. Key informant interviews were also conducted with eleven financial institutions at the district and regional levels using guiding questions.

Both quantitative and qualitative data were collected from sixteen piped systems. Quantitative data were obtained from the operational records on system components and capacities, expenditure disaggregated into operations, maintenance, water revenue, tariff structures and service levels for the small town in the study districts. Qualitative data collected was grouped into the following themes: overview and functionality of systems, management models, funds mobilization and financing capital maintenance expenditure and alternative financing mechanisms for addressing capital maintenance expenditure.

Quantitative data was collected with the use of Android phones, and the qualitative data was collected through Focused-Group Discussions (FGDs) and key informant interviews. CWSA regional staff collected both qualitative and quantitative data. The data collection processes entailed the training of facilitators, rapporteurs and translators on conducting focused group discussions and key informant interviews. Data collection process was supported and supervised by staff from the CWSA Head office.

Primary data was collected between April and June 2016. Questionnaires used for the data collection were pre-tested. FGD consisting of 6–8 discussants was used to collect data from the District Assembly and the WSMTs. Two FGDs was conducted per district, one each with the WSMTs and district staff. Key informant interviews were conducted with financial institutions. Preliminary findings from the study were validated in each of the district with the WSMTs and district staff.

Primary and secondary quantitative data were analyzed using Microsoft Excel software. While secondary data employed service monitoring data collected in 2014 on performance of WSMTs for small towns in the three districts. The baseline data collected was assessed against indicators and benchmarks related to governance, operations and financial management based on national guidelines. Qualitative data analysis involved identification, examination and interpretation of patterns and themes in the textual data from the focused group discussion and determination of how these patterns and themes responded to the guiding questions using content analysis. The qualitative data was used to triangulate the quantitative data.

Akatsi South district is located in the Southeastern part of Volta region in Eastern Ghana (Figure 1). The district has an estimated population of 98,684 with a growth rate of 2.4% [19]. At the end of 2015, the average water coverage for Akatsi South district was 60.03%. Akatsi South district is endowed with 197 boreholes fitted with handpumps, 4 Small Town/Communities Piped Systems and 1 Limited Mechanized System [20].

Figure 1.

Map showing locations of the studied districts in Ghana

East Gonja district is located at the Southeastern section of the Northern region of Ghana (Figure 1). The total land area of the district is 8,340.10 km², occupying 11.95% of the landmass of the Northern region, making it the largest district in the country [21]. The population demand for water in the district is very high. According to CWSA baseline data collected in 2014, East Gonja district has 130 boreholes fitted with handpumps, 10-piped systems and low water coverage of 30.45%. Functionality of these boreholes fitted with handpumps stood at 57% with non-functional handpumps estimated at 40%. The 10-piped systems are managed by eight WSMTs [20].

Kintampo South district is one of the 27 districts within the Brong Ahafo region of Ghana (Figure 1) and one of the six newly created in the region. The district covers an area of 1,774.85 km² and comprise of about 122 settlements [22]. The district has 267 boreholes fitted with handpumps (out of which 33 were broken down), four limited mechanised systems and three piped systems in 2014. With these facilities, the district’s water coverage stood at 72% in 2016. Performance of WSMTs and the DA’s functions were identified as poor, and would be addressed in their 2017–2020 Water and Sanitation Plan [20].

The national commitment to ensure sustainability of WASH facilities provided to rural communities and small town, under the National Community Water and Sanitation Programme (NCWSP), is based on the COM strategy. Legal ownership of water supply systems is vested in the DAs, who hold this in trust for the communities. Communities are responsible through their respective WSMTs for the everyday management of these systems in line with the tenets of community management [23].

DAs are the focal point for delivery of WASH facilities. The DAs are mandated to plan, budget and implement their own water and sanitation programmes. They are also responsible for the approval of tariffs, the appointment of water service providers and oversight of community management to ensure compliance. WASH services are also guided by the tenets of good governance and transparency [23]. The private sector has the responsibility to deliver the needed goods, works and services through contractual arrangements.

WSMTs are established in each small town and rural community for the overall management of water supply and sanitation facilities. The formation and operation of the WSMT is guided by the national model bye-laws. WSMT are responsible for setting tariff and exercise this responsibility in consultation with the community. The portion of the tariff for major rehabilitation, expansion and replacement are to be invested to add value and safeguard against depreciation [18], [24] (Figure 2).

According to the model bye-law for the establishment and operations of WSMTs:

• WMST shall review and recommend water tariffs, service fees and penalties to the DA for consideration and approval at least yearly;

• WSMT are to establish at least three accounts, designated as ‘Operational Account’, ‘Capital Account’ and ‘Sanitation Account’ for managing its finances;

• WSMTs are to make payments of all revenue accrued from water sales and other receipts to the Operational Account and are to pay from the said account all the regular operation and maintenance costs;

• WSMTs shall make a monthly payment to the Capital Account at a figure to be determined by the WSMT but not less than 20% of the net monthly revenue accrued to the WSMT after all regular operation and maintenance costs have been paid. The DA may allocate funds yearly through budgetary allocation to the Capital Fund;

• Each year the WSMTs are to prepare a work plan and budget for the operation and maintenance of the water system with technical assistance from the district;

• The books and accounts of the WSMTs are to be audited annually by auditors approved by the DA within three months of the end of the immediate previous financial year. The DA is to approve the audit report. A summary of the audit report shall be posted on the community notice board [24].

Figure 2.

Institutional relationships within the Community Water and Sanitation sub-sector [23]

The community, as citizens and customers, has a key role to play in ensuring sustainable service delivery. This role includes expressing demand for services and indicating their preference in terms of levels and quality of service and affordability, making payments for services provided, registering complaints where services are not according to set standards and demanding accountability from service providers (Figure 2, [23]).

Results of the study revealed that 15 out of 16 piped systems were working. The age of systems ranged between 2 to 52 years (Table 1). Akatsi system had a malfunction distribution bulk meter and replaced two pumps at the cost of USD 3,698. In Lume-Avete with the exception of the float-valve, all components of the piped system were working and had not experienced any major breakdown in the past 12 months. According to Avenorpedo and Dagbamete WSMTs, piped systems suffered major break down in the past 12 months. However, more than half of the systems were working, though intermittent shutdown lasting one to seven days in the last one year was reported. Reasons included land dispute, non-functional control panel, pump and damage of pipelines because of road construction and farming activities.

Salaga system is a complex surface water treatment plant that draws and treats water from Daka River for consumption. The system is huge, old and almost all its components have been replaced or repaired, including change of pumps, extension of pipes and some portions of the transmission lines, and maintenance work at the pump house. Funds were not readily available for all the major maintenance works that needed to be carried out so external support came from Canadian Department of Foreign Affairs Trade and Development (formerly CIDA), and the DA, taking more than one month to fix.

Kpalbe system is a solar powered slow sand filtration system – water from the dam is pumped through sand filtration media that treats water for consumption. The system provided under the Guinea Worm Eradication Project has broken down for the past 7 to 8 years. It is non-functional because of pipe burst, pollution of source water by animals and malfunctioning of the media. It has been abandoned because the community had difficulty mobilizing funds to fix it. Daboashie system unlike Kpalbe depends on bulk water supply from Ghana Water Company Limited (GWCL), which is stored in three overhead polytanks. The bulk water supply is erratic and occasionally takes 2–3 months for the WSMT to be served. In the last year, two of the polytanks have burst and the third one leaks. Furthermore, the meter at the vending site has stopped working. The only repair work ever carried out was worth USD 5 in 2016 and this was for repair works on a standpipe.

Dashie has a mechanized system with bulk water supply from GWCL connected to two overhead polytanks and characterized by erratic water supply and this translates to 2–3 months downtime in a year. The system has never broken down, however, one of the overhead polytanks leaks and not fixed due to lack of funds. Talkpa-Abromasi system is a five-year’s old mechanized borehole powered by solar (Table 1). Water is pumped and stored in an overhead polytank. In the last 12 months, a minor problem occurred with the pump but the community organized communal labour to mobilize funds to fix the problem in a week.

In Kintampo South District, two solar mechanized systems with only public standpipes are available at Amoma and Krabonso. Nante system is a surface in-take with household connections. The remaining two piped systems at Anyima and Jema depend on mechanized boreholes with power from the national electricity grid (Table 1). A complete shut-down was reported for only Jema piped system in the 12 months preceding the data collection. This breakdown lasted for about a month and was caused by a fault on the drop out fuse and lightning arrestors. Complete shutdown was also reported for the piped system at Krabonso when it was being test-run and under the management of World Vision Ghana. The breakdown was caused by defects on the submersible pump and the pump replaced as part of project’s cost, under defect liability period.

In this study, three management models were identified as direct, partial and private operators. Out of the sixteen small town water systems, ten were directly managed by the WSMTs, four were partially managed and two by private operators (Table 2).

Majority of WSMTs (7 out of 16 WSMTs) have extremely cordial relationship with the DAs. According to these WSMTs, the DAs are responsive to the challenges that confront them. Others had cordial relationship with the DAs (5 out of 16) but it was revealed that the DAs were not responsive to the challenges reported to them. While there was no relationship between some of the WSMTs and the DAs (3 out of 16), others (1 out of 16) reported of bad relationship with the DAs. Majority of the STWSs whose management had good relationship with the DAs were either directly or partially managed by WSMTs. Private operators managed STWSs had no relationship with the DAs (Table 2).

In Akatsi South, although there exist a good relationship between the DA and the WSMTs, according to the WSMTs, frequent visits will strengthen the existing relationship. In East Gonja, Salaga, Dashie and Daboashie WSMT members were of the view that if the operations of the systems were ceded to private operators, the systems would perform much better and minor repairs such as replacement of faulty tanks would be fixed promptly.

Though the DA plays a general supervisory role in Dashie, the WSMT is of the view that, its relationship with the team and issues relating to water was unresponsive. Daboashie and Kpalbe have no cordial relationship with the DA since several complaints sent out to the DA did not yield any positive outcome. Talkpa-Abromasi WSMT described the relationship between them and the DA as bad. Apart from the Environmental Health Officer who visits the area occasionally, they scarcely interact with the DA. Kpembe and Makango management and the private operator hardly have anything to do with the DA.

WSMTs at Amoma and Krabonso however mentioned that their work could be enhanced if given the necessary support from the DA, in the form of refresher training and the requisite record books. With the exception of Nante WSMT, all the others indicated that there were some form of interaction between them and the DA. Interactions between the WSMTs and the DA staff occurred through audit meetings and visits on demand. WSMTs however indicated that these forms of interactions did not occur on regular basis.

Akatsi and Salaga systems supply water to government institutions such as hospitals, clinics, Police service, Prisons and Senior High Schools. These institutions are highly indebted to the WSMTs because they default in paying their bills regularly. In the case of Salaga, some of the institutions owe arrears of up to three years. In a bid to address some of these challenges, Akatsi WSMT has taken legal action against some defaulters to retrieve monies owed the system.

Kpembe and Makango systems are privately owned and managed by WaterHealth Ghana, a wholly owned subsidiary of WaterHealth International in partnership with DAs and communities through a Public Private Partnership (PPP) model. It uses the Build, Operate and Transfer (BOT) approach to delivering water. WaterHealth Ghana was established in 2007 to provide safe, scalable and affordable drinking water to underserved communities. The private operator prefers managing Kpembe system to the WSMT. A WSMT has been constituted alongside the private operator due to persistent plea from the community to be involved in management of the system. Although a WSMT has been constituted, they feel sidelined in the management. As their views are never considered with regards to issues pertaining to the day-to-day running of the system. However, it is not the standard practice to have a WSMT for private facilities. The financier of the system- WaterHealth Ghana adopts the market-based approach that seeks to recoup the investment. Kpembe system supplies water to the Nursing Training College unlike Akatsi system, payment for water appears not to be a problem.

In Kintampo South, with the exception of Nante and Amoma where the current group of WSMTs begun their work in 2011 and 2014 respectively, the remaining three WSMTs started managing their respective piped systems in 2015. Piped systems at Amoma and Krabonso did not have meters at the public standpipes, making it difficult to track quantity of water vended and total revenue that ought to be generated from the sale of water. Controlling of private connections was reported as a major problem at Nante. Only 12 out of 41 private connections in the community were done with the involvement of the

WSMT and most of these private connections were not paying monthly bills. An individual without recourse to the WSMT did the other private connections for the WSMT.

WSMTs interviewed in Akatsi South were aware of CWSA guidelines for setting water tariffs. Nevertheless, only Akatsi WSMT used the tariff guideline. The rest indicated that they were unable to use the guideline because of their limited capacity and resort to community consensus. All the WSMTs rely on revenue generated from sale of water for major repairs and stated that in case they are unable to meet the cost of any repairs or replacement, they intend to increase tariff, organize fund raising and apply for a bank loan as a last resort. Avenorpedo WSMT would consider increasing water tariff due to the high operational and maintenance costs. Akatsi WSMT submitted their last tariff to the DA in December 2015 for approval prior to its implementation in January 2016. Afterwards, the WSMT submitted a revised tariff of 0.023–0.035 cents per 18-litres due to high electricity bills to the DA for approval (Table 3). All the WSMTs admitted publicly rendering accounts to the community once a year during Christmas and at community durbars. Akatsi WSMT in addition submitted quarterly returns on their transactions to the DA for scrutiny.

Akatsi South district Assembly confirmed that all the WSMTs operate bank accounts, however only Akatsi WSMT operated all three required accounts while Avenorpedo WSMT operated operational and capital accounts. Lume-Avete and Dagbamete operated only operational accounts. Akatsi South DA has sufficient knowledge of budget-based tariff, which is derived from all the cost elements of operating and maintaining a water system. They are also cognizant that WSMTs have to present a proposed tariff to the DA for approval before implementation. According to the DA, only Akatsi WSMT followed CWSA guidelines for tariff setting. Other WSMTs in the district did not submit their proposed tariffs for approval even though the DA alluded the WSMTs were aware of the procedures. The prevailing tariff of 0.006 cents per 18-litres at Lume-Avete, Avenorpedo and Dagbamete was unrealistic and in the opinion of the DA contributed to the inability of WSMTs to generate sufficient funds to meet their operational and capital maintenance cost (Table 3).

Kpalbe WSMT admitted the tariff was not realistic and could not sustain the system. They assert that since the water project was targeted at eradicating guinea worm, they felt obliged to motivate residents to patronize potable water and stop fetching surface water. They agreed it was difficult to set tariffs based on the guidelines. Kpalbe only source of fund mobilization for major repairs was through meager tariff and individual donations until the system eventually broke down.

The situation was completely different in Talkpa-Abromasi as the WSMT did not set a tariff. They practice a levy system where every woman pays 0.12 cents on Fridays, irrespective of the quantity of water drawn for the whole week. The WSMTs attempt to implement 0.047 cents per 36 litres tariff was unsuccessful. The WSMT counts on the high communal spirit of the people to mobilize funds to undertake minor repairs whenever the need arises. However, the system is barely 5 years old and has not encountered any major maintenance problem. The WSMT through meetings with sectional leaders and community disseminate information including the finances.

Daboashie WSMT set no tariff based on the guidelines as in the case of Kpalbe. A tariff of 0.023 cents per 36–40 liters of water was implemented for some time but it was not able to meet bills charged by Ghana Water Company Limited for water it distributed to their storage tanks. The tariff was reviewed upwards to 0.047 cents per 36–40 litres, which is being implemented currently. This has resulted in majority of the dwellers fetching surface water. The WSMT is not able to account to the people because of poor attendance.

WaterHealth Ghana determines Kpembe and Makango system tariff regime, which is not in line with the tariff guidelines. Tariff rates range between 0.023–0.047 cents depending on the volume of the container. Funds mobilization for addressing major repairs was not disclosed but did not appear a problem. The private owner does not account to the people nor the DA.

The Salaga system operates both tariff and levy system. However, the tariff is arbitrary, not taking into consideration all that is spelt out in the tariff guidelines. Households connected to the system pay USD 1.16 per day for the number of hours water is rationed whereas those who fetch from the public standpipes pay 0.047 cents for 54–60 liters. Nevertheless, the WSMT asserts that realistically, 18 litres of water should cost 0.140 cents. The main source of funding major repairs is from revenue generated from sale of water. Some external support especially from the DA occasionally fund some major maintenances. The WSMT mostly resort to Radio Stations to account to the people on the running of the system.

Dashie WSMT did not set any tariff and for that reason, had no knowledge of the CWSA tariff guidelines. They allow community members to fetch water free but levy each household to raise money any time they were served a bill from GWCL. The system has no institutional connections. The WSMT apparently has no plan in place for addressing major maintenance should the system suffer one. Information on the operations and management of the system is disseminated through community meeting. East Gonja DA admitted that they were aware of the guidelines for setting tariffs. The district nevertheless conceded that the DA in recent times has not approved any tariff, nor was any of WSMTs practicing realistic tariff – setting regime in the district. They also indicated that the WSMTs operate only operational accounts. It was further revealed that the Salaga system owed an accumulated electricity bill of USD 46,512. WSMTs did not prepare annual budget and financial statements because of the low educational level of the members. The district confirmed several attempts to carry out technical and financial audit of the systems. However, these initiatives were abortive for the Salaga system because in instances where auditors requested for their financial books, the WSMTs never honored the request.

Clearly Avenorpedo and Dagbamete systems expenditure exceeded income in 2012, 2013 and 2015 and Akatsi and Lume-Avete income also exceeded expenditure from 2012–2015. Strikingly was the huge cost of utilities Akatsi and Avenorpedo had to pay in 2015 because of increase in electricity tariffs (Table 4). There was no data from East Gonja WSMTs income and expenditure from 2012–2015.

All WSMTs in Kintampo South adopted pay-as-you-fetch as the principal means of funds mobilization. A tariff regime of 0.023 cents per 18-litres was charged in almost all the piped system communities except at Amoma where the WSMT charged 0.023 cents per 36-litres (Table 3). None of the WSMTs interviewed operated sanitation and capital accounts. Nante, Krabonso and Amoma explained they were not aware of the guidelines recommendation for operating three bank accounts. Although Anyima and Jema were mindful of operating three accounts, they felt their money was too small to open three accounts. All the WSMTs noted that revenue from sale of water was banked in their ‘Operational Accounts’. This phenomenon allowed WSMTs to draw money for the day-to-day running of their water systems (operations and maintenance as well as administrative expenditure), with no ring fencing of funds for CapManEx. This stems partly from the lack of routine monitoring and enforcement of the guidelines by the DAs.

Four out of the WSMTs surveyed in Kintampo South were not aware of the existence of the guidelines for setting water tariffs, and therefore did not use it in determining water tariffs. Similarly, only one out of eight staff of the District Assembly during the Focused Group Discussion session had knowledge of the existence of guidelines for setting tariffs. WSMTs, which did not use the tariff guidelines, indicated that, they pegged their rates at the prevailing tariffs of nearby communities, which also operated piped systems, and considered user’s willingness and ability to pay in agreeing on a tariff of 0.023 cents per 18-litres (Table 3).

Three of the WSMTs interviewed mentioned that they would consider increasing their water tariffs in consultation with the community. They explained that the cost of operations and maintenance was increasingly expensive (Table 5). Tariff increment was contemplated by some WSMTs who wanted to generate enough money while the systems were still new, to finance capital maintenance expenditure in the future.

Aside revenue generated by WSMTs for funding major repairs, Kintampo District Assembly indicated that it had set aside 2% of its total budget (USD 13,622) to support WASH activities in the 2016 Composite Budget [22]. The district noted that this budget would be drawn from the DAs Common Fund allocations. This budget line was considered by the district as adequate to support the small town piped systems because the systems were not likely to experience breakdown at the same time. Therefore, the current budget allocations would be enough to assist the various WSMTs to finance their repair works if required. According to the DA, financial support to WSMTs to meet the cost of major maintenance needs is strictly demand driven. Based on the magnitude of the repairs (major or minor) and the available savings of the WSMTs, support is provided. The district indicated that unless otherwise stated, financial support to WSMTs are not expected to be paid back because water facilities are assets of the DA. They however expressed grave concern on the seeming lack of submission of WSMTs tariffs to the DA for review and approval in consultation with CWSA Regional Office, as required by the water sector guidelines [25].

Apart from funds mobilized from water tariffs, support from the DA and other donors, bank loans were considered an alternative. Eleven banks in the districts were interviewed on the financial operation of the WSMTs. The banks never granted loan to any WSMTs simply because they received no loan application from them. They indicated the possibility of granting financial assistance to WSMTs provided the application requirements were met. In their view, operating an active account as well as the inflows and outflows and collateral were key to granting a loan. When probed on whether banks could use water systems as collateral for granting loans, all showed no interest as they rejected this proposition. GCB Bank Limited in Salaga alluded to the bank’s core mandate as purely business. Of the three banks surveyed in Akatsi South, Avenor Rural Bank confirmed holding the accounts of more than twenty WSMTs including the four WMSTs interviewed in this study. Akatsi WSMT operates daily deposit with the bank and this leads to efficiency in funds mobilization and management.

The Appraisal requirements for accessing loan from the banks surveyed included the following:

• WSMTs must have accounts with the banks for at least one year;

• The WSMT must submit a loan application form to the bank. If the application is evaluated and it meets the standards, the bank will request for a collateral in the form of landed property, which is properly valued and documented;

• Audited financial statement of the WSMT;

• Constitution for the operations and activities of the team;

• Guarantee letters from Municipal/District Assemblies;

• Income generation capacity of the various piped systems determines the magnitude of loan ceiling and the WSMTs ability to pay back loans;

• Bank official(s) make an enquiry visit to the WSMTs to evaluate their loan request.

The financial institutions indicated that loans to WSMTs are treated as commercial, with varying interest rates per year: 33% (Avenor Bank, GCB, Bonzali Rural Bank, GN), 19.5% for BACSSOD, 32–37% for ADB, 32% for Kintampo Rural Bank and 35% for Sahel Sahara bank. Loan repayment is calculated in monthly installment. The appraisal and loan application requirements were almost the same across all these institutions except for GN Bank, which had an extra requirement in the applicants having a guarantor who should be a customer of the bank.