Guyana Water Management Contract Advice to DfID

The problem

The Government of Guyana was moving to terminate a contract with Severn Trent, who managed Guyana Water Inc., claiming it was failing to meet its targets. The Department for International Development (DfID), the party paying for Severn Trent to manage the utility, wanted to see if the problems could be fixed without terminating the contract, but wasn’t sure of the underlying causes, or of what changes would help.

How we helped

Castalia evaluated the contractual obligations and performance of both parties. We found that the key problem was that the division of duties wasn’t clear. We recommended a new approach to the governance charter and identified what Severn Trent would need to remedy.


Severn Trent was not willing to agree to the changes we suggested, and the government terminated the contract. We reported to DfID that under the circumstances the government’s decision was reasonable.

Our team

David Ehrhardt

David Ehrhardt

Chief Executive

How can we help you?

How can we help you?