Assistance for the Senegalese government in renegotiating its drinking water contract with Sénégalaise des Eaux
The Agence Française de Développement (AFD)
Contexte et enjeux
The Agence Française de Développement has been assisting the Senegalese government for several years in improving its service for producing and distributing drinking water across the country.
In order to achieve this, the Senegalese government signed a service delegation contract with two entities: the Sénégalaise des Eaux (SDE), the private operator which runs the service, and the Société Nationale de l’Eau Sénégalaise (SONES), which is in charge of managing the assets of the service. With this contract due to expire, the Senegalese government wished to draw on external expertise to support it in the negotiations required for the extending of the contract. It therefore called on Espelia's services, with funding from AFD.
Prestations réaliséees et résultats
For the government, the principal issue at stake in the negotiations was the price of water. A major prospective modelling exercise was therefore carried out by our consultants in order to assess as accurately as possible the expected changes in the price and to compare these to the proposals put forward by the operator.
In addition to the strategic advice given in the course of the negotiations, Espelia also carried out sensitivity tests on all the components contributing to the price of water and assisted the Senegalese government in developing its investment programme for the water and sanitation sector for the 2013-2017 period, taking into account the financial margins for manoeuvre in the sector.
The mission resulted in the signing of an extension amendment to the contract for a duration of 5 years between the Senegalese government and Sénégalaise des Eaux.