PROJECTS

Developing a New Business Model for the National Water Commission, Jamaica

The problem

To meet the increasing demand for water and sewage services driven by Jamaica’s growing economy, the National Water Commission needed to invest US$3.5 billion. However, the utility is not profitable and tariffs are already reaching unaffordable levels.

How we helped

Castalia designed a new business model for the National Water Commission that involves listing the utility on the Jamaica Stock Exchange and bringing an industry partner, to provide the expertise, incentives, and financing essential for the utility to be efficient, profitable, and creditworthy. To do this, we developed business model options based on a review of international experience, and consulted on these options with stakeholders, including: the utility’s Board and management, the Government, financial institutions, and union representatives. Castalia built consensus among these stakeholders with differing views on government ownership, public-private partnerships, and privatization to decide on a model that will deliver the efficiency gains and profits needed to finance capital expenditures.

Castalia also prepared the utility’s submission to the regulator seeking a tariff increase based on a marginal cost analysis and recommended improvements to the utility’s corporate governance, planning, and operations functions based on a diagnosis.

Impact

The National Water Commission has accepted Castalia’s recommended business model and is awaiting Cabinet approval to begin implementation.

Our team

Ananthi Bharadwaj

Ananthi Bharadwaj

Senior analyst
David Ehrhardt

David Ehrhardt

Chief Executive
Shannon Riley

Shannon Riley

Manager

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (0)1 84 60 02 00
64-66 Rue des Archives
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.  Terms | Privacy | Credits | Sitemap

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap