GFZA secures GHS 21.5m grant to enhance water and sewage system at Tema Export Processing Zone
The Ghana Free Zones Authority (GFZA) has secured some GHS 21.5m (€1,657,509) in grant to enhance the water and sewage system at the Tema Export Processing Zone (TEPZ).
The grant provided by the Facility Investing for Employment (IFE) on behalf of the KfW Development Bank and the German Federal Ministry for Economic Co-operation and Development (BMZ), seeks to meet the current water demand of 7,512 m3/day for industrial companies located in the industrial park.
The grant will specifically be used for the construction of a new water storage facility composed of a 6,800m3 underground tank and a 2,273m3 overhead tank as well as a pumping station.
The total cost of the project is estimated at GHS 23.9m (€1,841,677) with the IFE contributing 90% of the cost and the GFZA contributing the remaining 10% cost – GHS 2.39m (€184,168).
Speaking during the Grant Signing Ceremony between the GFZA and IFE, Chief Executive Officer of the GFZA, Mike Ocquye, noted the construction of the new water and sewage system is expected to create some 1,500 direct jobs and 6,000 indirect jobs.
“The Tema Export Processing Zone is faced with some infrastructural challenges which include inadequate water supply to companies located in the zone.
“It is a good thing that IFE has identified this particular challenge for which it has decided to support and deal with the challenge by providing the GFZA with this grant,” he remarked.
“Aside from the Tema Export Processing Zone (TEPZ), there are other four industrial zones in the country under the supervision of the GFZA that also have some infrastructural challenges, and as such the GFZA would be glad to receive continuous support from the IFE to tackle these infrastructural challenges at the other four industrial zones,” he added.
Also speaking at the Grant Signing Ceremony was Managing Director for IFE, Steffen Kuhl, who expressed the IFE’s commitment to ensuring the successful completion of the water and sewage system at the Tema Export Processing Zone (TEPZ) and providing more grants to Ghana for various projects.
“Water in an industrial zone is of utmost importance and that’s why the IFE is happy to provide this grant to the GFZA. By the end of next year (2024) the IFE is looking at disbursing over €50m in grants for nine projects in Ghana,” he quipped.
Present at the signing ceremony was Deputy Minister for Trade and Industry and former CEO of the GFZA, Michael Baafi, who expressed gratitude to the IFE for the grant support.
The GFZA currently has five (5) industrial enclaves (Tema Export Processing Zone, Afienya Free Zone, Shama Land Bank, Sekundi Industrial Park and Ashanti Technology Park) with the Tema Export Processing Zone being the only fully developed industrial enclave. Unfortunately, most of these industrial zones are not able to house companies because they have not been fully developed as a result of insufficient financial resources.
The Tema Free Zone is the largest Industrial zone in Ghana. The Zone covers a total area of 1,200 acres (480 hectares) and is strategically located in Ghana’s major industrial and seaport city of Tema.
The Tema Free Zone is currently occupied by ninety-one (91) licensed and non-licensed free zone enterprises mostly engaged in manufacturing and food processing.
That notwithstanding, the Tema Free Zone is faced with a number of developmental challenges including inadequate water supply for business operations in the enclave.
The new water project by IFE is intended to expand the water storage facility within TEPZ by replicating the existing facility. The project will see the construction of a 1.5-million-gallon (6,800 m3) Ground Level Tank, a 500,00-gallon (2,273m3) Elevated Tank to serve as a distribution medium and a Pump House (including the Installation of an Electromechanical component).
Currently, the Tema Free Zones Enclave is served by a ground-level tank (reservoir) of 6,800 m3 (1.5 million gallons) which pumps water into a high-level tank of 2,273m3 (500,000 Gallons).
It is essential to note that, the actual storage capacity at the enclave is 6,800m3 while the High-Level 2,273m3 specifically serves as a supply medium. However, the ground-level tank provides a daily supply of 4,090m3/day while reserving a buffer of 2,710m3 to address emergency situations such as the need to fight fire, and construction works undertaken by TEPZ.
However, the current water demand by the ninety-one (91) companies operating within the enclave is 1,653,729 gallons (7,518m3) per day as ascertained from the feasibility studies. This leaves a demand-supply gap of 754,054 gallons (3,428m3/day) that needs to be addressed.
Sometimes, the companies purchase water from unreliable tanker operators at exorbitant prices to augment the shortfall as there are no other alternatives. The current shortfall has also led to higher production costs, shortened production cycles, stifled expansion, and slowed production growth, which invariably affects the need for accelerated job creation.
After the completion of this project, TEPZ will be able to bridge the current demand-supply gap thereby reducing the cost of production of companies in the Zone. The enhanced water supply will also go a long way to increasing production capacity for many companies.
Especially, companies limited in production due to the shortage in water supply, can on the completion of the project operate an efficient 24-hour production line leading to the creation of more jobs for the youth.
The increase in productivity will also result in increased revenue of these companies leading to increased wages and enhanced living conditions of staff.
An MoU confirming Ghana Water Company’s readiness to supply TEPZ with the needed water when the project is completed and operational has been signed between the Ghana Water Company Limited (GWCL) and the GFZA.
