Approaches introduced to the Senegalese water sector include the country-wide lease contract, the public-private-NGO-community partnership for standpipes in Dakar, and the use of small enterprises to maintain rural and small-town water systems with the support of
micro-credits.
Urban water-supply lease One of the best-known and successful innovative approaches to water supply in Senegal is the lease signed in 1996. According to the Senegalese government, the number of clients of Sénégalaise des eaux (SDE) increased from 241,671 in 1996 to 638,629 in 2014. Out of almost 400,000 new connections, 206,000 served the poorest population, primarily on the outskirts of Dakar. According to the
World Bank, the government reached the poor by establishing a national fund to subsidize the private operator. It aimed to improve services to the poor for a lower price. Social connections were free, and a connection fee was charged for wealthier households. SDE and the Senegalese National Society of Water Usage (SONES) worked through a large NGO to identify the need for social connections, and the private operator set up a decentralized, computerized network of payment booths; this facilitated payments by domestic clients. The operator's remuneration was based on the amount of water produced and sold, providing an incentive to serve as many customers as possible and reduce water losses. A 2006 study by the
Boston Institute for Developing Economies (BIDE) estimated the net benefits of the lease at US$457 million. Customers had better access to more water and to the government, and small benefits ($6 million) accrued to the owners of the water company. Foreign lenders lost $14 million and employees lost $10 million in job losses and lower increases to wages and benefits. The private operator was selected competitively in a two-stage bidding process. Four bidders, all French, participated in the first stage: Générale des Eaux (now
Vivendi Environnement), Lyonnaise des Eaux (now
SUEZ), the Société d'Aménagement Urbain et Rural (SAUR), and CISE (later merged with SAUR). Qualified bidders submitted a proposal, which was evaluated at a meeting. SAUR was invited to bid, although the company had advised SONEES since 1980. The World Bank opposed eliminating them from the bidding but SONEES was instructed to finish all contracts, end all contact, and give SAUR no access to their operation four months before the bidding. All four bidders were invited to submit revised technical proposals and financial bids; Lyonnaise des Eaux eliminated for non-compliance. The bid from Générale des Eaux was also eliminated, since they refused to endorse some contract requirements. The two remaining bidders, CISE and SAUR, were invited to present second-stage bids. On October 25, 1995, SAUR was announced as the winner based on price. The company's bid was a water-supply rate of 236
F.CFA per cubic meter, 62 percent of the average tariff at the time. The Aide Transparence report cited customer complaints about poorer water quality, increased use of mineral water in Senegal, and cuts in tap water one or more days.
Community partnership for standpipes in Dakar Another approach is the community partnership with SONES, SDE, and an international NGO with local roots (
Enda Tiers-Monde) to select locations for standpipes, build and operate them. The partnership installs metered standpipes for poor households who had used polluted well water. The program is demand-responsive, instead of relying on supply-side targeting of the poor. The community is involved in planning, construction, and maintenance, leading to strong ownership and nearly-100-percent cost recovery. Households pay the standpipe operator, who pays the utility for the water. The community chooses the operator (or a group of rotating operators) who may work for the community or, occasionally, for themselves for a share. There are two types of standpipe schemes. SONES finances the infrastructure cost in one, and ENDA finances the infrastructure of the other. The latter scheme, known as the "Eau Populaire" program, began in 1995. The SONES scheme has installed about 250 standpipes, and the ENDA scheme about 130. In 2001, An estimated 200,000 people had access to potable water with the Eau Populaire project in 2001, and it has led to a significant drop in waterborne illnesses in children. The project has also created several hundred jobs (standpipe operators who receive 30,000 to 80,000 CFA per month) and funds other local projects with standpipe revenue.
Rural water supply In rural areas, the government began supporting the introduction of sustainable management models for piped-water systems using boreholes in 1999 with the pilot project REGEFOR in central Senegal. The project includes the use of metering and
volumetric pricing, maintenance contracts with private-sector companies, and
microcredit support. The first pilot project covered 80 boreholes. In 2009, a private maintenance company was scheduled to be contracted for 621 boreholes in central Senegal. By January 2010, all of the country's 1,400 boreholes were expected to be covered by private maintenance contracts. == History and recent developments ==