Govt. explores avenues to keep a sinking GWI’s head above water

As he stressed “water is life,” Minister of Finance, Winston Jordan recently declared that the Guyana Water Inc. (GWI) is barely surviving as it is currently operating at a loss. However, he declared that his government will do all it can to ensure loss reduction.

Former GWI CEO, Shaik Baksh

The pledge came as the Minister presented Budget 2015 to the National assembly in the absence of the People’s Progressive Party/ Civic opposition. Jordan vowed that the APNU+AFC government will work to ensure that every Guyanese has access to reliable, safe and quality potable water in every tap, in every town and in every rural and hinterland community. However, the Minister informed his colleagues that an analysis of the state of GWI revealed that the agency is “operating well below break-even- indeed at an operating loss.” He said that the cost of production of potable water surpasses the current tariff, with electricity cost and non-revenue water being key factors affecting financial viability. GWI has had its fair share of negative publicity in recent times, with all the woes being connected to the core problem of mismanagement of resources. The financial resource of GWI, which is now said to be limited, was reported to have been misappropriated by the previous administration. Also, it was said that the family of a former top GWI official, used the company’s physical resources like they were their personal properties. Earlier this year, former GWI CEO Shaik Baksh’s son crashed a pickup that belonged to the company, wrecking it and seriously injuring himself on the Soesdyke/Linden Highway. Under regulations, the CEO’s son was not supposed to be driving the vehicle. Baksh was reportedly out of the country at the time. Also, just after elections, it was reported that GWI and a local advertising agency were at loggerheads following the refusal by GWI to pay nearly $7M for billboards. The billboards were commissioned as GWI ads but instead were changed to be used as campaign tools for the PPP/C. According to the source, GWI received an invoice for almost $7M from the advertising company, Impressions. The invoices were for nearly two dozen billboards ordered by the utility company.

One of the billboards

The source admitted that Impressions had indeed been hired to produce billboards for the utility company. Specific designs had been agreed upon by both sides. However, a subsequent check of the erected billboards showed that they did not conform to the previously agreed upon design. Instead, the billboards were used as an electioneering tool and were modified to include the People’s Progressive Party/Civic (PPP/C) elections slogan, “for a strong, stable and secure Guyana vote PPP/C”. Subsequently, Baksh was sent on leave by the new administration. Baksh, who was appointed as CEO in October 2012, was asked to proceed on leave effective June 1 by the Chairman, Ramesh Dookoo. Baksh’s leave is for 72 days but his contract is due to expire before it is up. Despite the financial woes of GWI, government said that it remains committed to the company. During his budget speech, Jordan indicated that government will ensure that improvement and efficiency related to reducing losses in the production and distribution of potable water is at the top of the list. Interestingly, the Minister did not state if the quest to reduce losses may mean a hike in water tariffs. He told the National Assembly that the entire reticulation system of Georgetown, along with substantial overhaul of the Shelter Belt facility, will commence shortly. The Minister said that within the next few months, new treatment plants will be constructed to supplement existing production capacity. Further, Jordan told the House that focused attention will be placed on addressing the gaps in potable water availability in the far flung reaches of our deep hinterland neighbourhoods, since, in many instances, the intensive activities associated with river mining and logging pollute the rivers and creeks. “We will invest $2.9 billion to ensure increased coverage of an improved quality of water supply. In this regard, 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. We will also expend a sum of $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, the extension of distribution transmission mains will be done in areas such as Hope Housing Schemes, Stanleytown, Williamsburg, Kildonan and No. 59, 66 and 69 Villages. Under this same provision, rehabilitation works will be done to the Timehri and New Amsterdam Water Treatment Plants,” said Jordan.