GMSA urges review of $496M state water bottling plant

The Guyana Manufacturing and Services Association (GMSA) is urging the Government to reconsider plans for a state-owned bottled water facility, warning that the proposed investment could place the State in direct competition with local manufacturers that have already invested heavily in the industry. In a statement issued Tuesday, the Association said it has been closely following the Government’s announcement that the National Assembly approved $496.3 million for a bottled water plant to be operated by Guyana Water Incorporated (GWI). The GMSA said it supports the Government’s goal of achieving 100% locally produced bottled water (HS 2201) and remains committed to that vision, describing it as an opportunity to strengthen local manufacturing, create jobs and improve Guyana’s economic resilience. Earlier this year, the Association and local bottled water manufacturers met with Minister of Public Utilities and Aviation Deodat Indar and GWI’s leadership to discuss opportunities and challenges within the sector. However, while supporting local production, the GMSA argued that any state initiative should be designed to complement—not compete with—the private companies that already manufacture and distribute bottled water across Guyana. The Association noted that several of its members have invested significant capital, built distribution networks and created employment over many years, and said those investments should be protected. It also pointed to President Dr. Mohamed Irfaan Ali’s announcement in February, when he called for close collaboration between the Government and the private sector to achieve full local bottled water production. According to the GMSA, the President envisioned shared production infrastructure—such as bottle manufacturing—to reduce costs across the industry, rather than a state-run operation competing directly with existing businesses. “The project should be structured as a partnership that lowers costs and expands capacity for the entire sector, rather than a taxpayer-funded competitor to existing private industry,” the Association said. The GMSA warned that direct state participation in a market already served by local manufacturers could discourage future private investment, create uncertainty for businesses that have committed substantial resources to the industry, and run counter to the Government’s stated objective of promoting private sector-led growth and industrial development. The Association also stressed that GWI’s primary responsibility remains providing reliable and safe potable water to households across Guyana, arguing that any commercial diversification should support—not distract from—that core mandate. It is therefore calling on the Government to review the proposed investment and engage in further consultations with bottled water manufacturers and other stakeholders before moving ahead. The GMSA said it stands ready to work with GWI and the Ministry of Public Utilities and Aviation to develop an approach that benefits consumers while strengthening Guyana’s local manufacturing sector.