Privatization of GPL and GWI

Mar 19, 2025 Letters

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Dear Editor,

The shift in management at GPL from a private company back to the government has been disastrous for the country. From blackouts to falling power lines, and wasteful spending on power supply ships, our government’s actions prompt a closer look at the management of our main utilities. GWI has also suffered from poor maintenance, sewage in the distribution system as experienced in Timehri and the lack of a systematic upgrades that strengthen the firefighting system.

CRG recommends implementing a model where the government is not directly involved in managing key utilities. A model where private companies specializing in utility services are used would be more beneficial to consumers. The expertise of those specializing in energy and water utilities will allow consumers to get the best value for their money and help drive continual improvement in the technology used in the local market across the entire value stream.

Furthermore, using a multi supplier model will ensure that rates remain competitive and that options are available for shifts to better service providers when issues arise. Whether it be a supply issue or one which sits with customer service, companies who manage the entire utility value stream are better equipped to meet consumer needs. An open market model requires service providers to continually improve in order to remain competitive and relevant. Whereas a government owned and run utility suffers from a lack of competition that does not encourage innovation and efficiency improvements.

The role of the government in utilities should be focused and limited to providing regulations that protect consumers, and the development of the guiding strategy for future rate decreases and environmental sustainability. Unfortunately, the socialist / communist approach that has been used by our country over the years and that has spawned the nationalization of our utilities has resulted in poor management and underperformance. This is primarily due to the non-competitive nature of the model being used and its inherent lack of expertise.

Politics usually interferes in determining who fills key roles instead of seeking out the best candidates to fill those roles, and in Guyana’s case the political atmosphere has led to the removal of the teams put in place by the party exiting the government. Resulting in the appointment of those aligned with the party taking power. A lack of trust and objective decision making allows for this vicious and divisive cycle to continue every time our government changes hands from one party to the other. The result is inevitably poor management of our key utilities, which has led to the never ending blackouts, and the poor sanitation and delivery of the water supply.

Current efforts to improve the sanitation of the water supply should be applauded, and water treatment plants should be placed in each region in an area far away from where chemicals, fertilizers or other hazardous substances will be manufactured or stored in order to prevent contamination. However, without improvements in the maintenance and expansion of the distribution system the improvements in the quality of water supplied will have a limited impact on the quality received in the homes of our citizens. Old lines need to be replaced to prevent the health issues like the one which occurred in Timehri when sewage got into the water lines. Preventative maintenance continues to be an area of opportunity for our nation’s utilities. We must shift from a corrective maintenance approach to one that is more proactive and predictable. These are some of the benefits that privatization will bring to our utilities when implemented. After decades of poor management and unsustained improvements it is time for Parliament to discuss a shift to this more competitive utility model, which uses a multi supplier approach. History has shown this to be a better option for consumers. One which provides lower competitive rates, and more reliable service delivery.

By requiring the privatization process to include the hiring of our current workforce at GPL and GWI we can also provide our workers with the training needed to upgrade their skills. Our workers will be given the opportunity to add value in the new companies while the companies will also help ensure that our labour force continues to develop and grow as our utility services expand. It is time for our nation to seriously consider the shift from government owned to privatization. Let’s allow the entry of first world utility service providers into the local market and begin leveraging the open market model for the benefit of our citizens.

Best regards,

Mr. Jamil Changlee

Chairman

The Cooperative Republicans of Guyana

(Privatization of GPL and GWI)

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• firefighting, GWI, key utilities, private companies

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