Water supply and sanitation in Guyana

Access

Data on access to drinking water supply and sanitation in Guyana differ depending on the source of information. The two key sources of information are the 2002 census and the 2000 Multiple Indicator Cluster Survey.

Overview

The Joint Monitoring Program (JMP) for water and sanitation of WHO/UNICEF quotes the following data from the 2000 Multiple Indicator Cluster Survey:

Source: Joint Monitoring Program WHO/UNICEF(JMP/2006). Data for water and sanitation based on the Guyana Multiple Indicator Cluster Survey, July 2001.

Despite increases in coverage, only about 53% of Guyana’s population has access to house connections for water supply, and only 13% has access to sewerage, according to the survey data. Access using a broader definition is higher (83% for water - including rainwater harvesting - and 70% for sanitation), but still insufficient.

Water supply

The 2002 census offers shows a more detailed breakdown of these numbers than the WHO/UNICEF JMP data. The census data are not differentiated by urban or rural areas, but they differentiate by main source of drinking water supply and main source of water supply for non-potable uses. Many households have access to several sources of water supply - such as rainwater harvesting, public supply and bottled water - balancing the availability and quality of the various sources.

Drinking water supply

The first figure shows data from the 2002 census, while the figure in brackets shows the figures from the 2000 Multiple Indicator Cluster Survey.

The census and the cluster survey consider rainwater harvesting as an improved source of drinking water supply, but does not consider bottled water as such. Therefore, access to an improved source of drinking water supply according to these definitions was 82% according to the 2002 census and 83% according to the 2000 cluster survey.

Access to an improved source for drinking water supply is lowest in the Hinterland, in particular in regions 8 and 9.

Water supply for non-potable uses

The census figures for water sources for non-potable uses are different from the ones for drinking water. The share of piped water supply into the dwelling is higher (38% vs. 23%), while some other sources such as rainwater harvesting did not appear in the questionnaire.

Source: Guyana 2002 Census, p. 129

Other sources of water supply for non-potable uses include rainwater catchment (5%); public standpipes or pumps (3%); private wells (1%); rivers, creeks, streams, ponds and springs (11%); and others (3%).

Sanitation

According to the 2002 census, only 5% of the population had access to a W.C. linked to a sewer; 36% had access to a W.C. linked to a cesspit or septic tank; 56% had access to a pit latrine; and 2% had not access to sanitation facilities. The census does not allow to determine the type of latrine used, and thus it cannot be deducted from the data what is the share of population with access to adequate sanitation.

Sewers only exist in the capital, Georgetown. Regions 7, 8 and 9 in the Hinterland show the highest share of population with no access to sanitation, each with more than 15% of the population without access.

Service quality

Service quality for customers connected to the public system is poor, including low water pressure in most service areas, intermittent supply in all service areas, and a high risk of bacterial contamination due to the fact that about half of the public supplies receive no disinfection.

Throughout the coastal area of the country the aquifer that supplies most of the drinking water has a high level of iron, making the water red. Iron removal plants are being built to remedy the problem.

History and recent events

Institutionally the sector has evolved from two separate utilities, GS&WC and GUYWA, which were merged in 2002 into a single utility, Guyana Water Inc. (GWI). In 2003 a five-year management contract was signed, which was cancelled by the government in 2007. The utility is now attempting to consolidate itself under a Turnaround Plan.

Georgetown Sewerage and Water Commissioners (GS&WC)

The Georgetown Sewerage and Water Commissioners were established in 1929 under British colonial rule to operate and maintain the sewerage and waterworks of Central Georgetown.

After the independence of Guyana in 1966 the Pure Water Supply Division of the Ministry of Public Works was responsible for policy setting in the water sector, as well as for water supply outside of Georgetown. The Ministry of Health had the responsibility for sewerage and sanitation activities.

Guyana Water Authority (GUYWA)

The Guyana Water Authority (GUYWA) was established in 1972 to construct, operate and maintain water distribution systems outside of Georgetown to small towns, rural areas and most of the Hinterland regions, taking over the water service provision in these regions from the Ministry of Public Works. GUYWA was under the policy direction of the Ministry of Public Works, Communications and Regional Development. In 1984 responsibility for provision of water services was also placed in the hands of the Regional Democratic Councils, one for each of the country's 10 regions, working alongside GUYWA.

In 1994 GS&WC was made an autonomous public sector institution under the control of the Minister of Works and Communications through the Georgetown Sewerage and Water Amendment Act Number 4.

Reorganization, creation of GWI and private sector participation

In 2000, with the assistance of the donor community led by the U.K. Department for International Development (DFID), and the World Bank, the Government of Guyana embarked on a reorganization of the water sector with the goal of increasing access to safe and affordable water. Specifically it aimed to achieve: (i) a modern, efficient, and customer-oriented utility; (ii) long-term financial sustainability; and (iii) an institutional framework characterized by independent regulatory functions and a clear division of responsibilities. The Caribbean Development Bank, the European Union and the European Investment Bank also supported the reforms with financial commitments.

In 2002 the Water and Sewerage Act was passed, which merged the Georgetown Sewerage and Water Commissioners (GS&WC) and the Guyana Water Authority (GUYWA), to form Guyana Water Inc. (GWI). In January 2003 a performance-based five-year management contract was awarded to an international private operator, Severn Trent Water International (STWI). The contract was fully funded through a grant from the British government. Furthermore, the mandate of the existing Public Utility Commission (PUC) was extended to review water tariffs. A ten-year investment program was elaborated and drinking water standards were established.

Termination of management contract and Turnaround Plan

In February 2007 the government terminated the management contract alleging that the company failed to meet five out of the seven objectives in the contract. Minister of Housing and Water Harry Narine Nawbatt said that the decision was influenced by the results of an audit into STWI’s performance carried out by the consulting firm Halcrow.

According to the Minister, four out of the five missed targets were:

STWI, however, pointed out a number of achievements during the four years it operated in Guyana: "significant improvements in water quality"; an alleged reduction of non-revenue water from 61% to 44% (a figure that is in contradiction with what the government says was the result of the audit); an alleged increase in hours of water supplied and system pressure by more than 80%; an alleged increase in revenues from G$ 900m 2002 to G$1.7bn in 2006; the introduction of a customer information and billing system; and emergency supplies during the 2005 floods. STWI also pointed out several factors beyond its control that made it difficult to achieve its contractual targets: a disastrous flood in 2005; energy costs increasing by over 40%; the difficulty of recruiting and retaining qualified Guyanese staff; and the lack of timely government approval of investment programs and of the appointment of key Guyanese staff.

In December 2007 the government approved a Turnaround Plan for GWI, focusing on reducing non-revenue water and financially consolidating the utility.

Responsibility for water and sanitation

Responsibility for sector policy is vested in the Ministry of Housing and Water. The Public Utilities Commission (PUC), a multi-sectoral regulatory body, is in charge of reviewing water and sewer tariffs. However, the PUC seems to be less autonomous from government than other utility regulators in the Caribbean. Local government plays no role in the sector.

Water and sewerage service provision is the responsibility of Guyana Water Incorporated (GWI), a commercial public enterprise. GWI's service area is divided into five divisions along the Coast, numbered 1-5 from West to East. The Hinteland is served by a separate unit within GWI which provides support to community-based organizations that provide services in that part of the country.

Efficiency

An estimation of non-revenue water is difficult, since only 25% of consumers were metered in 2007. Nevertheless, GWI tentatively estimates non-revenue water at more than 70%.

Labor productivity in GWI is relatively high with a ratio of 3 staff per 1,000 connections in 2007. This is partly due to the contracting out of services such as leak repairs.

Financial aspects

The national water utility uses a highly complex tariff system. It does not recover operation and maintenance costs, and receives operational subsidies from the government. Investments are financed through external assistance and investment subsidies from the government.

Tariffs

The tariff system used by GWI is highly complex, consisting of 27 different water tariffs and 4 sewer tariffs in 2007. Water tariffs are differentiated between metered and un-metered customers; domestic, commercial, institutional and industrial customers; whether customers are former customers of GUYWA (outside the capital) or GS & WC (in Georgetown); and the rateable value of properties in the case of domestic customers.

In 2007 most domestic customers were categorized in the lowest category of rateable property value and were unmetered. Outside Georgetown these customers were charged a flat rate of 8,899 Guyanese dollar (US$ 47) per year, equivalent to US$ 3.90 per month. In Georgetown they were charged a flat rate of 11,799 Guyanese dollar (US$ 62), equivalent to US$ 5.18 per month. Domestic customers in high rateable properties paid about 80% more.

Metered tariffs for domestic customers in the lowest category of rateable property value are set at 61 Guyanese dollar per cubic meter (US$ 0.32/m³) outside Georgetown and 63 Guyanese dollar per cubic meter (US$ 0.33/m³) in Georgetown. At a consumption of 20 cubic meter per month (133 liter/capita/day for a family of five) that tariff would be equivalent to an increase of the water bill of 64% for customers outside Georgetown and 28% for customers in Georgetown compared to the currently prevailing flat rate for unmetered customers.

Sewer tariffs for domestic unmetered customers are set at 4,999 Guyanese dollars per year (US$ 26), or 42% of the water bill or a low rateable domestic customer in Georgetown.

GWI plans to rationalize its tariff system. Any modification in tariffs needs to be approved by the Public Utilities Commission. In addition, due to the political sensitivity of water tariffs, any modification de facto also needs to be approved by Cabinet.

Billing and cost recovery

The billing cycle for unmetered customers is annual and most users, including many with water meters, are so far billed a flat rate only. Bills for metered customers whose meters are being read are sent out on a quarterly basis. The level of cost recovery is low. According to GWI's Turnaround Plan, the utility's average billing efficiency in the 2003-2006 period was only 68%, meaning that 32% of its customers did not pay their bills. In 2006 GWI collected revenues of only G$ 1.2 billion, while operation and maintenance costs stood at G$ 3.5 billion, including more than 60% paid for electricity, mainly for pumping. The difference was partly made up by a government subsidy of G$ 1.4 billion, and partly resulted in unpaid bills to GWI's suppliers and deferred maintenance.

Investment and financing

Past investment levels were low and investments were predominantly financed by external donors. The utility now intends to increase its investments to US$ 21.2 million in the 2008-2010 period, equivalent to US$ 7 million per year or US$ 9/capita/year. The investments are intended to be used primarily to reduce non-revenue water and to rehabilitate the sewerage system in Georgetown. US$ 6.4 million (30%) of the investment program is being funded from existing commitments from three donors (the World Bank, IDB and DFID). The remainder is expected to be financed by existing government commitments from its own resources, as well as by additional commitments expected from the government and donors.