WASHINGTON, D.C., August 18, 1997—The
International Finance Corporation (IFC) has announced the signing of an
agreement between the government of Senegal and IFC for inviting private
sector participation in water services serving metropolitan Dakar.
Currently, Dakar's potable water supply falls substantially short of meeting
demand. The government of Senegal, already implementing major structural
reforms in the sector, has decided to turn to private sector operators
for investing in, and managing, the facilities required to transport bulk
water from the Senegal River basin, 240 km north of the capital.
"The unsatisfied demand of water in Dakar can be estimated in the
order of 50 liters per person per day, and this deficiency is expected
to increase well beyond the year 2000," said Paul Hinchey, Director
of IFC's Corporate Finance Services Department. "The introduction
of private operators committed to large capital investments over extended
periods of time will help satisfy the long-term demand for potable water
in Dakar," he added.
IFC will act as lead advisor to the government of Senegal to help structure
and promote an optimal method for private sector participation. IFC will
assist in assessing the technical options, structuring the transaction,
identifying potential investors, marketing the project, organizing and
implementing an international call for tenders. Various contractual arrangements
will be studied, such as build-operate-transfer, build-transfer, and concession.
This is IFC's third advisory assignment in the water sector. IFC recently
completed advisory mandates with the government of Gabon for the privatization
of the national water and electricity utility company, Societe d'Energie
et d'Eau du Gabon (SEEG), and the government of the Philippines for the
privatization of Metropolitan Waterworks and Sewerage Systems (MWSS). In
both transactions, IFC oversaw the selection of private operators through
an international competitive bidding process that attracted the interest
of worldwide industry leaders.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing
countries. IFC also provides advisory services to government clients covering
privatization and private sector corporate restructurings.