Liberia: Double Water Charges for Private Wells Spark Business Outcry

• Private well operators in Liberia face demands for separate annual fees from both the WASH Commission and the LWSC, leading to claims of double water charges.
• Businesses report combined annual regulatory and compliance costs for a single commercial well can reach approximately US$9,425.
• The WASH Commission charges between US$1,875 and US$3,000 annually, while the LWSC demands US$5,000 to US$6,000 for groundwater abstraction and licensing.
• The dispute centers on whether the LWSC's charges have a clear legal basis, given the WASH Commission's mandate as the principal water sector regulator.
• Legal experts are reviewing the statutory authority for these potentially overlapping fees, advising businesses on compliance and challenge options.

Lawyers and compliance officers in Liberia are therefore urged to conduct an urgent review of the statutory basis underpinning the water abstraction and licensing fees levied by both the WASH Commission and the LWSC on private commercial wells.

Private well operators in Liberia are currently facing demands for separate annual fees from two distinct government bodies: the Liberia National Water, Sanitation and Hygiene Commission (WASH Commission) and the Liberia Water and Sewer Corporation (LWSC). This situation has led commercial entities to claim they are being subjected to double water charges for the same private groundwater facilities they operate. The core of the issue revolves around the legal authority of each institution to levy these distinct fees, creating a significant regulatory challenge.

The financial strain on businesses is substantial. Operators report that the cumulative annual regulatory and compliance costs associated with a single commercial well can escalate to approximately US$9,425. This significant financial burden is placed on businesses that have already invested their own capital to secure reliable water supplies, often due to the unreliability of public services. For instance, a restaurant owner in Paynesville recounted borrowing US$8,000 three years prior to drill a private well after public water pipes in his area reportedly remained dry for months, an investment crucial for his business continuity. He now faces demands for separate payments from both government entities for the water his business independently sources.

This predicament has generated considerable frustration among affected businesses. One restaurant owner in Sinkor, speaking anonymously due to fear of repercussions, characterized the situation not as regulation but as "punishment for being self-reliant," highlighting the irony that after the government failed to provide water, businesses sourced their own, only to be taxed twice for their efforts. This sentiment underscores the perceived unfairness of the current system, where self-sufficiency is met with increased financial demands rather than support.

The specific fees imposed by each institution vary significantly. The WASH Commission reportedly charges commercial well operators between US$1,875 and US$3,000 annually per well. These figures represent a considerable increase from the US$200 to US$300 reportedly paid in 2022, according to operators. Separately, the LWSC demands annual fees ranging from US$5,000 to US$6,000 per well, specifically for private groundwater abstraction and commercial well licensing. The LWSC reportedly cites Sections 88.4(5)(c), 88.4(8), and 5(b) of its Amended Act as the basis for these charges.

Beyond these primary charges, businesses face additional compliance costs. These include an annual Environmental Protection Agency permit costing US$1,500, water-quality testing by the National Public Health Institute of Liberia at US$125, and at least US$75 in municipal fees. When combined, these various charges contribute to the approximate US$9,425 annual cost of operating a commercial well, though the precise amount can fluctuate based on specific fees applied to individual operators.

A central point of contention is the legal mandate of the WASH Commission, which was established by an Act ratified and gazetted on August 23, 2018. Section 9.1 of this Act designates the WASH Commission as the principal governmental body responsible for the regulation of water, sanitation, and hygiene across Liberia. Businesses contend that this provision vests the Commission with overarching regulatory authority over the nation's water sector, thereby casting doubt on the legal justification for another institution, such as the LWSC, to impose distinct licensing and abstraction charges on the very same private groundwater facilities.

The LWSC, under the leadership of Managing Director Mohammed Alie, continues to invoke its amended legislation to justify its charges related to private groundwater abstraction, particularly targeting facilities that abstract more than 5,000 gallons monthly or supply food and beverage establishments. This stance directly conflicts with the regulatory claims of the WASH Commission, creating a situation where the mandates of these two key institutions appear to overlap, leading to confusion and financial strain for private operators.

The ongoing dispute has prompted significant questions regarding the clarity of statutory authority for the fees being collected. Legal practitioners are now actively examining the implications of the LWSC's assertions and the broader regulatory landscape. The lack of a clear, unified framework for private groundwater abstraction charges in Liberia poses a challenge for businesses seeking to comply with regulations while managing their operational costs.

Lawyers and compliance officers in Liberia are therefore urged to conduct an urgent review of the statutory basis underpinning the water abstraction and licensing fees levied by both the WASH Commission and the LWSC on private commercial wells. Advising clients on the legality of these potentially overlapping and unauthorized charges is crucial, as is assessing their exposure to penalties and exploring avenues for challenging payments or seeking definitive regulatory clarification to prevent substantial financial repercussions.

Lawyers and compliance officers in Liberia should urgently review the statutory basis for water abstraction and licensing fees imposed by both the WASH Commission and LWSC on private commercial wells. Advise clients on the legality of these potentially overlapping and unauthorized charges, assessing their exposure and exploring options for challenging payment or seeking regulatory clarification to avoid significant financial penalties.

Source: Original reporting via local Liberian media