Bassirou Diomaye Faye renegotiated the contract with ACWA Power, here’s what Senegal now gains

The renegotiation of the contract for the construction and operation of the Grande Côte seawater desalination plant, signed yesterday at the presidential palace between the State of Senegal and the Saudi company ACWA Power, marks a decisive turning point in the contractual policy of the Bassirou Diomaye Faye regime. This new public-private partnership (PPP) confers major strategic, economic, and social advantages to Senegal, in a context where sustainable access to drinking water is becoming a national emergency.

Economically, Senegal obtains a significant reduction in its financial commitments. According to the Ministry of Hydraulics and Sanitation, the State will now pay 17.5 billion CFA francs per year between 2027 and 2029, then 35 billion CFA francs per year from 2030, compared to 20 and 40 billion in the previous contract. The price of desalinated water per cubic meter is also reduced, from 427 CFA francs to 389.8 CFA francs. This decrease in production costs allows for a reduction in the public bill while ensuring better access to water for the population.

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In terms of production, the project involves the construction of two successive units of 200,000 m³/day, for a total capacity of 400,000 m³/day — double that of the current KMS3 plant. This production will sustainably meet the water needs of the Dakar-Mbour-Thiès (DMT) triangle, which accounts for 80% of national demand. This is a direct response to rapid urbanization and water access challenges in this crucial area of the country.

Additionally, the renegotiated contract strengthens the energy aspect of the project with the doubling of the associated solar production capacity, from 150 to 300 MWc. Excess energy will be sold to SENELEC at a competitive rate of 18 CFA francs/kWh, which will help reduce the overall cost of desalinated water while generating additional revenue for the national electricity company. SENELEC will also be a shareholder of the solar power plant management company (SPV-ÉNERGIE), as well as SONES in the future SPV-EAU.

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Finally, the contract includes qualitative commitments with the creation of a training institute dedicated to desalination professions, led by ACWA Power. This transfer of skills will allow Senegal to develop local expertise in a strategic field. The government emphasizes the respect for procedures and national interests, while strengthening its relations with Saudi Arabia. This renegotiation thus appears as a model of contractual sovereignty in the service of sustainable development.

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