Senegal Halts $759M Water Plant Deal, Citing Strategic Mismatch
Senegal has terminated a 700 million euro (759 million US dollars) contract with Saudi Arabian company Acwa Power Ltd for a seawater purification plant near Dakar. The decision, announced by the Water and Sanitation Minister, was made due to the project not aligning with the government's strategic plans.
The plant, intended to produce over 400,000 cubic meters of water daily, was aimed at meeting the increasing demand of Dakar's growing population, currently over 3.5 million and expected to rise further in the next few years. However, the minister cited potential price increases and growing water demand as reasons for the termination.
The project, which had not yet begun construction at the time of the announcement, was to see Senegal pay Acwa Power 33 million US dollars annually for the purified water. Acwa Power, if aggrieved by the decision, can sue for breach of contract at the International Court for Arbitration or settle the matter out of court. The Senegalese government is reviewing the potential consequences of breaking the contract and is confident of minimal financial losses.
The termination of this significant water purification project comes after President Basirou Faye's pledge to review and potentially cancel deals signed by the previous administration. The company informed about the termination is Suez. The government's decision, while potentially costly, is seen as a move to align projects with its strategic vision.
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