The Private Sector Commission (PSC) and bottled water manufacturers have agreed to pursue a collaborative public-private sector partnership to reduce the cost of bottled water, strengthen local manufacturing and ensure savings are passed on to consumers, though Government intervention does not necessarily signal permanent Government participation in the manufacturing sector.

According to a release, the agreement follows an engagement held Wednesday with Minister of Public Utilities and Aviation Deodat Indar, representatives of Guyana Water Incorporated (GWI), PSC executives and private sector bottled water manufacturers.

The PSC was represented by Chairman Capt Gerald Gouveia Jr, Vice Chairwoman Kathy Smith, Honorary Secretary Josephine Tapp-Rutherford, GMSA President Rafeek Khan, Trade and Investment Chairman Timothy Tucker, and representatives of manufacturers including Blue Spring Waters, Clear Waters, Pure Waters, Aquafina and Banks DIH Limited.

Minister Indar was accompanied by GWI Chief Executive Officer Shaik Baksh, Executive Director of Business Development Jaigopaul Ram, Executive Director of Finance Mark David, Monitoring and Evaluation Officer Julie Mingo-Todd and Communications Manager Travis Bruce.

Discussions identified production costs and distribution margins as the two key drivers of bottled water prices.

The private sector proposed a two-phase approach. The first phase would focus on standardising PET preforms and developing local preform manufacturing capacity through a public-private partnership, as PET-related inputs were identified as a significant cost component.

The second phase would address environmental tax, VAT and distribution and retail margins, which the PSC said could offset savings from lower production costs if left unaddressed.

Minister Indar said Government will examine margins applied throughout the supply chain, including among distributors and supermarkets. He said any Government involvement would be for a defined period, with a clear transition and exit strategy to be discussed as part of a public-private arrangement.

The private sector will submit formal proposals on participating manufacturers, PET preform standardisation, tax recommendations, distribution arrangements and a Government transition framework to Cabinet for consideration.

The PSC reaffirmed its commitment to improving affordability while protecting confidence in private sector investment, the release said.