Guyana Water Inc operating at a loss

Aug 16, 2015 News

– Finance Minister

While the coalition government may be working to ensure that every Guyanese has access to quality, potable water in every rural and hinterland community, an assessment of the accounts of the Guyana Water Inc. (GWI) has revealed that the company has been operating at a loss.
This is according to Minister of Finance, Winston Jordan. He noted that an analysis of the state of the entity has shown that the economic costs of production of potable water surpass the current tariff, with electricity cost and non-revenue water being key factors affecting financial viability.
To this end, Jordan said that the Government will ensure that improvement and efficiency related to reducing losses in the production and distribution of potable water are at the top of the list.
The Finance Minister said that the entire reticulation system of the City of Georgetown, along with substantial overhaul of the Shelter Belt facility, will commence shortly.
He said, too, that within the next few months, new treatment plants will be constructed to supplement GWI’s existing production capacity.
In like manner, Jordan said that focused attention will be placed on addressing the gaps in potable water availability in the far flung reaches of the country’s deep hinterland neighbourhoods, since, in many instances, the intensive activities associated with river mining and logging pollute the rivers and creeks.
The Finance Minister also noted that critical to the sustainability of providing a high quality of water service, is a change in the national approach to managing water resources in Guyana to one of integrated water resource management.
In this regard, he said that the re-establishment of the National Water Council, a new Non-Revenue Water Reduction Plan and Dakoura Creek Watershed Protection Plan will be implemented.
The Finance Minister also disclosed during his 2015 Budget Speech that government will invest $2.9 billion to ensure an improved quality of water supply.
In this regard, he explained that the sum of $422 million is provided for the completion of wells at Goed Fortuin, Hope and Cotton Tree, while drilling and interconnection works for new wells at Port Mourant, and Wakenaam will commence this year.
He said that government will also expend $950 million to construct more wells, install ground storage tanks, and install transmission mains and water meters at Uitvlugt, Diamond and Sheet Anchor.
In addition, Jordan noted that the extension of distribution transmission mains will be done in areas such Hope Housing Schemes, Stanleytown, Williamsburg, Kildonan and No. 59, 66 and 69 Villages. Under this same provision, he said that rehabilitation works will be done to the Timehri and New Amsterdam Water Treatment Plants.
The Finance Minister said that a sum of $592 million is allocated for Amelia’s Ward and Wisroc interconnection systems, while the upgrading of service connections and metering continues within the same service areas.
Some $130 million has been allocated to improve the water supply systems in areas such as Koko, Mabaruma, and Port Kaituma in Region One; and Mahdia, Monkey Mountain, Princeville and Campbelltown in Region Eight.
A report released last year by the Inter-American Development Bank (IDB) revealed that 50 to 70 percent of the water produced by GWI, estimated at 123,241,062 m3 in 2013, goes unaccounted for despite advancements in annual billing, while the current sewerage arrangement covers 48,000 people living in Georgetown. This figure represents just 6.5 percent of the national population, as the vast majority continues to use septic tanks and pit-latrines.
The report also spoke of a US$31.6 million package that was being provided for Guyana’s water and sewerage system.
The previous Minister of Housing and Water, Irfaan Ali had told sections of the media that when it comes to reducing those losses, one must understand that the system is old and inefficient.
He even noted that many of the problems are caused by customers. Ali had said that many persons continue to tamper with the system, going as far as breaking pipes so as to redirect the flow of water. He had even accused several mining operations in Region Eight of perpetrating such acts.

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Guyana Water Inc operating at a loss

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