Ali Defends $496M State Water Bottling Plant
By Antonio Dey | HGP Nightly News|
GEORGETOWN, GUYANA — President Dr. Irfaan Ali has defended his administration’s decision to establish a $496.3 million state-owned water bottling facility under Guyana Water Incorporated (GWI), pushing back against concerns raised by the Guyana Manufacturing and Services Association (GMSA).
Speaking to reporters following a community consultation on the East Coast of Demerara, President Ali rejected assertions that the government is entering into direct commercial competition with local producers, arguing instead that local manufacturers should question why imported bottled water continues to dominate the domestic market.
“GWI is Not in Competition”: President Ali Responds to Manufacturers
The dispute follows the National Assembly’s approval of $496.3 million in the supplementary budget for GWI to construct and operate Guyana’s first state-run bottled water facility.
President Ali maintained that water is a essential social good and that GWI has a statutory mandate to guarantee clean, affordable drinking water for all Guyanese citizens:
“GWI is not in competition with anyone,” President Dr. Irfaan Ali stated. “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?”
He added that state intervention is necessary to balance affordability and profitability in the market, ensuring that consumers are protected from exorbitant retail prices.
[ BOTTLED WATER SECTOR CONTROVERSY ]
│
┌────────────────────────────────┴────────────────────────────────┐
▼ ▼
[ Government & GWI Mandate ] [ GMSA & Opposition Concerns ]
- $496.3M allocated under GWI coastal budget - Private sector invested heavily in bottling capacity
- Aimed at achieving 100% locally produced bottled water - State entering commercial market risks crowding out local firms
- Focus on lowering consumer prices & replacing imports - APNU demands GWI focus on core tap water infrastructure
GMSA Warns State Facility Risks Crowding Out Local Investment
The Guyana Manufacturing and Services Association (GMSA) had previously issued a statement expressing alarm over the project. While supporting the national goal of achieving 100% locally produced bottled water, the GMSA warned that direct state entry into a market already served by private Guyanese businesses creates market uncertainty and undermines private investment.
The GMSA recalled President Ali’s earlier policy announcements advocating for public-private partnerships—such as shared bottle-manufacturing infrastructure—and urged the government to review the GWI project in favor of collaborative industry support.
APNU Criticizes Government Focus and Demands Project Cancellation
Addressing the issue during an A Partnership for National Unity (APNU) media briefing on Friday, August 7, Member of Parliament Juretha Fernandes criticized the administration’s policy direction:
“What you are seeing right now is the government shifting its focus… using state machinery to compete where private sector machinery is already established,” APNU MP Juretha Fernandes stated.
APNU Shadow Public Works figures, including MP Ganesh Mahipaul, argued that GWI should remain focused on its core mandate—improving water treatment plants, expanding transmission pipelines, and addressing unserved communities—rather than venturing into commercial enterprise.
