Privatization of government system

✍ Scribed by JeffreyM. Parker; PeterD. Ribbins

• Publisher: Elsevier Science
• Year: 1994
• Tongue: English
• Weight: 423 KB
• Volume: 97
• Category: Article
• ISSN: 0011-9164
• DOI: 10.1016/0011-9164(94)00095-6

✦ Synopsis

Cayman Water Company Ltd. (CWC) was incorporated in 1973 to provide potable water and sewage treatment services for a large planned real estate development on the Island of Grand Cayman in the British West Indies. Shortly after acquiring an 18,000 US gpd Aqua Chem desalination plant it became apparent that the planned real estate development would not proceed at anything like the originally contemplated pace and CWC therefore sought, and was granted, an exclusive licence from Government to supply potable water by pipeline to the major tourist area of the Island. Cayman's tourism grew from 76,000 visitors in 1975 to almost 1 million visitors in 1992. A former Government Minister acknowledged that this growth would not have taken place were it not for CWC. Today CWC has a production capacity of over 1 mgd, employs 17 people and is owned by 134 shareholders, the majority of whom are local residents.

PROLOGUE

In 1986 Government sought to extend the piped water supply into the capital city of George Town and asked if CWC had any interest. From a preliminary look at the area, which included large sections of office buildings and retail space as well as long runs of piping between residential properties, we concluded that some subsidy would be needed if our existing rates were to be maintained. There was no further discussion after that brief initial exchange of letters. With hindsight it would seem that