The Private Sector Commission (PSC) and representatives of the bottled water industry have agreed to pursue a collaborative public-private sector approach aimed at reducing the cost of bottled water.

The move comes after the Guyana Manufacturing and Services Association (GMSA) last week raised concerns about the Government’s move to get into the bottled- water industry.

The move was seen as competitive by the GMSA and the Parliamentary Opposition had also rejected the government’s plan to enter into the bottled-water industry.

The government has defended the move saying that there was a market for more bottled-water given the number of foreign brands on local shelves. But more than 90% of the bottled water available on shelves is made in Guyana.

The Public-Private partnership agreement followed another round of consultation held with the Minister of Public Utilities and Aviation, Deodat Indar; representatives of Guyana Water Incorporated (GWI); executives of the Private Sector Commission; and private sector bottled water manufacturers

The discussions identified production costs and distribution margins as the two key factors contributing to the price of bottled water.

Against this backdrop, the private sector proposed a two-phase approach to addressing the concerns surrounding the cost and availability of bottled water.

“The first phase would focus on the standardisation of PET preforms used by local manufacturers, where technically feasible, alongside the development of local PET preform manufacturing capacity through a public-private partnership or broader private sector consortium. PET-related inputs were identified as a significant component of production costs. Local production of PET preforms could also benefit other industries that rely on PET packaging,” the Private Sector Commission said in a statement.

The second phase would address environmental tax and other input costs, as well as distribution and retail margins. The PSC proposed the lowering or removal of environmental tax and VAT, together with a review of distribution arrangements and retailer mark-ups.

 The private sector will now submit formal proposals identifying participating manufacturers, opportunities for PET preform standardization and local production, recommendations regarding the lowering or removal of environmental tax and VAT, distribution arrangements, and a proposed framework for Government’s eventual transition or withdrawal. These proposals will then be submitted to Cabinet for consideration.

The PSC says it welcomes the progress made and reaffirmed its commitment to working with Government to improve affordability for consumers, strengthen local manufacturing, and protect confidence in private sector investment.

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