Guyana Water Company

concluded

In November 2002 the government of Guyana granted a five year management contract for the country’s state owned Guyana Water Incorporated (GWI) to private operator Severn Trent. The management contract was performance-based and contained stiff penalties for poor performance. Severn had the dual mandate of improving service and solidifying the financial position of the water utility. The operator was expected to reduce unaccounted water from 75% in 2002 to 25% and to increase collection from 65% to 90%. At the end of 2002 GWI provided service to 145,000 customers throughout the country. The contract was awarded through a competitive tender. In July 2002 two bids were received, from British companies Severn Trent and Biwater. The winner, Severn Trent, took over operations on January 1st, 2003. Guyana Water Incorporated was formed in May 2002 from the merger of state owned companies Guyana Water Authority and Georgetown Sewerage and Water Commissioners. The project was funded by the British government through the Department for International Development (DFID), who was to provide GWI with some $26 million for capital investments and pay the private operator's fees. On February 15, 2007, Severn Trent's contract was not renewed by the Guyanese government. The government of Guyana stated that Severn Trent failed to meet five of seven objectives including leakage reduction, revenue collection and provision of water to the Amerindian community. None None