“Misplaced priorities” – Mahipaul slams govt’s $496M bottled water plant as a direct threat to local business

Aug 09, 2026 News

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(Kaieteur News) – Opposition Member of Parliament (MP) Ganesh Mahipaul has launched an attack on the Ali administration, demanding a full public explanation for the decision to allocate $496.3M of taxpayers’ money toward establishing a state-owned bottled water plant.

Labelling the move a “classic case of misplaced priorities,” Mahipaul argued that the government is wasting massive financial resources to enter a market that is already overwhelmingly controlled and supplied by private Guyanese businesses, while households across the country continue to suffer from inadequate water treatment and distribution infrastructure.

In his statement, Mahipaul directly challenged the government’s core rationale, defended by President Ali, Minister of Agriculture Zulfikar Mustapha, and Minister Deodat Indar, that state intervention is necessary to eliminate bottled water imports.

Dismantling the administration’s claims with market figures, Mahipaul pointed out that Guyana’s local bottled water sector is already thriving, established local companies like Blue Springs and Clear Water produce between 150,000 and 170,000 cases per month, while Banks DIH and Demerara Distillers Limited (DDL) contribute roughly another 50,000 cases, yielding a total local output of approximately 200,000 cases monthly. Total imported bottled water accounts for only 6,000 to 10,000 cases per month. Based on these figures, imported bottled water represents a mere 2.9% to 4.8% of the total monthly supply, meaning local private manufacturers already satisfy over 95% of the entire market.

“So, I ask the Government directly, where is the crisis that requires the State to spend $496.3M to enter this market?” Mahipaul questioned. Mahipaul stressed that if eliminating the small fraction of imported water were genuinely the government’s goal, far less costly and more targeted solutions exist.  Instead of spending nearly half a billion dollars to set up a government-owned competitor, Mahipaul insisted the State should: Grant local manufacturers tax breaks and incentives for expansion, reduce duties on imported machinery and production inputs, support existing producers in increasing plant capacity and strengthen quality control standards and introduce transparent fiscal measures to encourage local consumption.

“That approach would strengthen Guyanese businesses, Guyanese workers, and Guyanese investment without forcing taxpayers to finance a government-owned competitor,” he emphasised. “Government should be creating the conditions for local businesses to grow, expand, and employ more Guyanese, not using taxpayers’ money to compete against them.”

Beyond market disruption, Mahipaul zeroed in on what he identified as a dangerous distortion of public service responsibilities under Guyana Water Inc. (GWI). He highlighted that communities across Guyana are actively struggling with dry pipes, low water pressure, and unreliable utility infrastructure, deficiencies the government itself has acknowledged require urgent, multi-plant treatment investments.

“If the Government has $496M available to invest in the water sector, then let us put that money where Guyanese need it most,” Mahipaul urged, calling for those funds to be redirected toward new treatment plants, distribution pipelines, storage capacity, and reliable utility networks.

“We must not confuse bottling water with solving Guyana’s water problems,” Mahipaul declared. “A bottle of water sitting on a supermarket shelf does not solve the problem of a family turning on its pipe and getting no water.”

Calling directly on President Ali and Ministers Indar and Mustapha respectively to justify the investment, Mahipaul insisted that state commercial ambitions must not take precedence over delivering clean, reliable tap water to every Guyanese household.

Minister Indar said in a recent statement via his ministry’s Facebook page that he met with representatives of the Private Sector Commission (PSC) and stakeholders in Guyana’s bottled water industry. The meeting, held alongside Parliamentary Secretary Thandi R. McAllister, included PSC Chairman Captain Gerald Gouveia Jr., PSC Vice-Chairwoman and Georgetown Chamber of Commerce and Industry (GCCI) President Kathy Smith, representatives of the Women’s Chamber of Commerce and Industry Guyana (WCCIG), the Guyana Manufacturing and Services Association (GMSA), and local manufacturers including Banks DIH, Demerara Distillers Limited (DDL) and Aquafina.

Addressing concerns raised by stakeholders, Indar assured the private sector that the government’s initiative is not intended to compete with existing businesses. “We are not producing water to compete with you,” he told the meeting.

Kaieteur News reported on 2^ndAugust, that the National Assembly had approved $496.3M to establish Guyana’s first state-owned water bottling plant, advancing President Irfaan Ali’s push for the country to achieve 100 percent locally produced bottled water. The funds, allocated under GWI’s coastal water supply services budget, will finance a facility intended to reduce Guyana’s reliance on imported bottled water.

Announcing the approval, Indar described the plant as a strategic national project that would enhance the country’s economic resilience, self-sufficiency and long-term water security. He said that despite Guyana’s abundant freshwater resources and GWI’s extensive treatment and distribution network, the country has continued to depend heavily on imports — a gap he believes a GWI-operated plant could close while lowering consumer prices. Producing locally, he explained, would eliminate costs tied to international freight, marine insurance, import handling fees and distributor markups.

The push for local production dates back to February, when President Ali, during the commissioning of a water treatment plant at Five Miles, Bartica, in Region Seven, gave the Ministry of Public Utilities and Aviation a 12-month deadline to end reliance on imported bottled water. “You can’t be such a resource rich country in fresh water and be importing bottled water,” Ali said at the time, calling on the ministry to collaborate with the private sector on a shared production model — including a single, centralised facility to produce standard-size plastic bottles for the industry — to achieve economies of scale. Ali said GWI officials had assured him the utility could bottle water economically enough to sell it for $100 or less.

On 5^thAugust, Kaieteur News reported that the GMSA had mounted a strong challenge to the government’s investment in the plant, warning that it could crush private investment and put the state in direct competition with manufacturers that have spent years building the industry. The association, which met separately with Minister Indar and GWI leadership, said it welcomed the government’s vision of achieving 100 percent locally produced bottled water as a strategic opportunity to strengthen local manufacturing, create jobs and boost economic resilience — but stressed that any state initiative should complement, not undermine, existing private investment.

“Several GMSA members have invested capital, built distribution networks, and created jobs in this space over many years. Any initiative by the state should be structured to strengthen, not to compete with or undermine, that existing private investment,” the association said.

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• bottled water plant, Mahipaul, Misplaced priorities, threat to local business

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