APNU parliamentarian Ganesh Mahipaul says the coalition does not reject the establishment of a state-owned water bottling plant in principle but believes the government’s allocation of $496.3 million for the venture is difficult to justify while numerous communities lack a clean and reliable water supply.
Responding to questions yesterday from Kiskadee Watch, Mahipaul said governments could pursue commercial ventures where there was a clear public interest and demonstrable benefits to citizens. However, he argued that the proposed Guyana Water Incorporated (GWI) bottling plant reflected misplaced priorities.
“At this time, the allocation of $496.3 million towards a water bottling plant is difficult to justify when many communities across Guyana continue to struggle with unreliable water supplies, poor water quality, low water pressure, and in some cases, no access to a proper water distribution system at all,” he said.
The National Assembly approved the allocation at its July 27 sitting under GWI’s coastal water-supply services programme.
In a subsequent Facebook post, Minister of Public Utilities and Aviation Deodat Indar described the proposed facility as Guyana’s first state-owned water bottling plant and said it would help meet national demand while reducing reliance on imports.
Indar said the project was intended to strengthen Guyana’s economic resilience, self-sufficiency and long-term water security. Local production, he said, could lower retail prices by eliminating international freight, marine insurance, import-handling fees and distributor mark-ups.
According to the minister, the investment is in keeping with a commitment made by President Irfaan Ali and will advance GWI’s mission of providing safe, reliable and accessible potable water.
Mahipaul, however, said GWI’s first responsibility was to provide households with potable water and not to compete in the bottled-water market.
“Thousands of families are still waiting for the most basic service that they expect from Guyana Water Incorporated, which is safe, clean and reliable potable water flowing from their taps every day,” he said.
He contended that the money should have been directed towards the construction of additional water-treatment plants, expansion of transmission and distribution pipelines, replacement of ageing infrastructure, reduction of water losses and extension of service to underserved communities.
“Ordinary Guyanese are not asking the Government to sell them bottled water,” Mahipaul said. “They are asking for clean water in their homes so they can cook, bathe, wash and drink safely without having to purchase bottled water because the public supply is inadequate.”
He also raised questions about the effect the state-owned operation could have on existing local bottled-water producers.
Mahipaul said several private Guyanese businesses had invested capital, created employment and contributed to the economy. He argued that a GWI-operated bottling plant, financed by taxpayers, would inevitably compete with those businesses while the utility’s primary public-service obligations remained unmet.
“Government should be creating an environment that supports private enterprise, not using taxpayers’ money to establish a State competitor,” he said.
The APNU parliamentarian called for the government to disclose the proposed location and production capacity of the plant, its total capital and operating costs, projected selling price, intended distribution network and anticipated return on the investment.
He also questioned whether an independent market study had been conducted to establish the viability of the project and asked the government to explain how the venture aligned with GWI’s statutory responsibility to provide safe and reliable water services.
President Ali announced the broader push for locally produced bottled water in February during the commissioning of the Five Miles Water Treatment Plant in Bartica, Region Seven.
According to the Department of Public Information, Ali set a target for all bottled water consumed locally to be produced in Guyana within 12 months.
“You can’t be such a resource-rich country in fresh water and be importing bottled water,” the President said at the time.
Ali said the objective would require close collaboration between the government and private sector, together with economies of scale and standardised production systems. He suggested, among other things, shared plastic-bottle manufacturing to reduce operating costs and improve competitiveness.
GWI had estimated that locally treated and bottled water could be produced and sold for approximately $100 per bottle or less where operating costs were efficiently managed.
“We have to look at all the verticals so that we can bring down the cost of water,” Ali said. “A country known as the land of many waters must have the cheapest water available to its people and its visitors.”
The President also argued that Guyana should view water as an economic commodity and develop an optimisation plan for its freshwater assets, given predictions of increasing global scarcity.
Mahipaul maintained that the central issue was whether the expenditure should take precedence over GWI’s existing service deficiencies.
“A Government that truly places people first would ensure that every community has access to safe and reliable potable water before embarking on a commercial bottling venture,” he said.
“Until that basic responsibility is fulfilled, spending nearly half a billion dollars on a State-owned bottled-water business sends the wrong message.”
Discussion