Some US$60 million will be spent in the coming year on continuing improvements in the local water sector along with the integration of the two utility bodies.

However, a further US$40 million is needed to facilitate the completion of the water sector modernization programme expected to take about five years.

Meanwhile, a management operator will be appointed to head the soon to be formed Guyana Water which will replace the Guyana Water Authority (GUYWA), and the Georgetown Sewerage and Water Commissioners (GS&WC), as the regulatory body in the sector.

The operator is to be chosen from one of four United Kingdom companies identified by government and his fees will be funded through the UK's Department for International Development to the tune of US$20 million. Speaking at a press briefing at the Guyana Television Broadcasting Corporation Homestretch Avenue studios (GTV 11) yesterday, Minister of Housing and Water, Shaik Baksh, stated that the management operator option was being considered due mainly to what he said was the lack of capable local resources. According to the minister, the decision was taken through consensus between the government and the donor agencies after an analysis of the sector showed deficiencies in expertise to adequately manage the system.

Among the concerns to be addressed by the management team, according to Baksh, would be the reduction of water losses said to be approximately 70% of what was produced. Losses were said to occur as a consequence of old distribution lines along with the lack of proper management.

It is estimated that the merger of the two agencies would be completed by June next year following legislation to be tabled in parliament. Over time (two years after creation) the utility will come under the purview of the Public Utilities Commission (PUC) which has similar jurisdiction over the telecommunication and electricity sectors. To necessitate this, the PUC's capacity would be strengthened. In preparation for the utility merger, which according to Baksh will provide for the ownership, management and control of the country's water and sewerage systems, a transitional management team comprising personnel from the two entities currently managing the sector sitting on a joint board, has been established.

Legislation, he further stated, would eventually see the setting up of a council to oversee a national water policy which would see the strengthening of the hydrometeorological department which would function as the authority on the granting of licences to operators of wells.

Baksh, while alluding to the strides made in bringing improvement to the local water and sewerage sectors, also highlighted some projects that were completed during the past year.

The minister also outlined certain works that are expected to be undertaken in the year 2002 including the construction of iron removal plants in central Ruimveldt and Sophia under an Inter-American Development Bank (IDB) funded project to the tune of US$30 million.

There are also plans to construct a major water factory at La Bonne Intention (LBI) on the East Coast Demerara some time in the new year, to ensure that residents on the lower coast between Victoria and Industry receive water at least up to the first floor of their premises.

Plans are also afoot to streamline the water system in the Linden community, which the minister stated was in a state of neglect and confusion due to the non-existence of relevant data to trace the distribution system. To this end GUYWA, which took control of the community's water supply in October of this year, has started to map out strategies for a complete rehabilitation of the mining town's system.

Water factories and treatment plants are also scheduled for completion in many areas across the country including Bartica, Rose Hall on the Berbice coast and Eccles on the East Bank Demerara (EBD), to cater for residents between there and Friendship.

Baksh said that the hope was to achieve an efficient utility, which is capable of satisfying the needs of its customers and of achieving financial sustainability to put it on a sound footing.