GWI “not in competition” with Private Sector – Pres Ali on state-owned bottled water project

President Dr Irfaan Ali on Thursday defended the Government’s plans to establish a $496.3 million state-owned water bottling facility amid concerns raised by local manufacturers.
“GWI (Guyana Water Incorporated) is not in competition with anyone,” the Head of State told reporters on the side-lines of an event on Thursday.
Earlier this week, the Guyana Manufacturing and Services Association (GMSA) called for a review of this project, arguing that the country’s goal of achieving 100 per cent locally produced bottled water can be realised through partnerships with existing local producers rather than direct state participation in the market.
But according to President Ali, the GWI is merely seeking to provide affordable water to citizens.
“GWI has a responsibility to provide safe drinking water to the population and water that is affordable… The local manufacturers should ask themselves why foreign water is here displacing them. Why do we have foreign water coming to Guyana and displacing local producers?”
“There are some products that are social in nature. And when you look at the price of water in the region and internationally and water here, we have a duty and responsibility to the people. So, it’s just arriving at that situation where there is balance – balance in need and balance in profitability,” the Guyanese leader stated.
Only Monday last, the National Assembly approved $496.3 million for the GWI-operated water bottling facility. The investment is aimed at reducing Guyana’s dependence on imported bottled water while strengthening national self-sufficiency and water security. According to Government, despite Guyana’s abundant freshwater resources and GWI’s existing treatment and distribution network, the country continues to rely heavily on imported bottled water.
However, the GMSA said in a statement on Tuesday that while it supports the Government’s objective of producing all bottled water locally, there are some concerns about the impact this proposed state venture would have on private Guyanese businesses that already produce and distribute bottled water in the country.
Earlier this year, the association, along with local bottled water manufacturers, had engaged Public Utilities and Aviation Minister Deodat Indar and GWI officials to discuss opportunities and challenges within the industry.
According to the association, the initiative presents an opportunity to strengthen local manufacturing, create jobs, and improve Guyana’s economic resilience. However, it maintained that the proposed state venture should be designed to support, rather than compete with, businesses that have already invested in the sector.
“Several GMSA members have invested capital, built distribution networks, and created jobs in this space over many years,” the Private Sector body contended.
Moreover, the Association further referenced President Ali’s announcement in February, in which he spoke of achieving 100 per cent locally produced bottled water through close collaboration between the Government and the Private Sector, including shared production infrastructure such as bottle manufacturing to reduce costs across the industry.
The GMSA said it supports that approach and urged GWI and the Public Utilities and Aviation Ministry to structure the project as a partnership that expands industry capacity and lowers production costs, rather than establishing what it described as a taxpayer-funded competitor to existing manufacturers.
“The Association is concerned that direct state participation in a market already served by local manufacturers could discourage future private investment, create uncertainty for businesses that have committed substantial capital to the sector, and potentially undermine the Government’s broader agenda of promoting Private Sector-led growth and industrial development,” the missive detailed.
It went onto to stress that GWI’s primary responsibility remains the provision of safe and reliable potable water to households across Guyana, adding that any commercial diversification should complement, rather than detract from, that mandate. To this end, the GMSA also called on the Government to undertake further consultations with local bottled water manufacturers and other stakeholders before proceeding with the project, adding that it remains willing to work with GWI and the Ministry on behalf of its members.
But even as the Manufacturing Association calls for a review of the project, GWI is moving ahead with another aspect of its bottled water initiative with the launch of the GOG-GWI Water Initiative Bottle Refilling Station at the Port Mourant Water Treatment Plant, which will be commissioned today.
According to the Public Utilities Ministry, members of the public will receive free five-gallon water refills throughout the launch day, after which refills will cost $100 per five-gallon container.