Sign up to E-News
Trinidad & Guyana
Following a local campaign against the negative impacts of water privatisation, in 1999 the Government of Trinidad decided to end the contract of UK-based water company Severn Trent Water International and rejected the company's proposal to extend the contract.
The Severn Trent subsidiary had been awarded the contract to manage Trinidad's water authority following advice from UK-based consultancy company Halcrow; advice designed to bring "private sector involvement in the water and sewerage authority". However, the private company failed to come up with the goods.
In 1998, a report by London Economics showed that only 30 per cent of customers had a continuous supply of water and sewerage. Meanwhile, hundreds of jobs were lost - even though there were thousands of leaks waiting to be fixed - and the water authority was forced to take a £250 million loan which will take 25 years to pay back.
Despite their poor performance and exit from Trinidad, Severn Trent Water International was awarded another water management contract in Guyana. This contract includes the payment of a management fee of at least £1.8 million to Severn Trent Water International, which was paid for by UK tax-payers out of the UK aid budget. Advice on the privatisation plan from consultants KPMG, was also funded by UK aid money, to the tune of £879,068.
The contract with Severn Trent Water International was cancelled in February 2007 by the Guyanese authorities citing the company’s failure to meet five out of the seven objectives in the contract. An audit carried out by Halcrow into Severn Trent Water International’s performance showed that while 52 per cent of the Amerindian settlements should have received potable water by 2005, only 4.3 per cent of those settlements actually received it. Water service was also erratic lasting on average only three hours a day, instead of the 16 hours a day stipulated in the contract.
Print this page
