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Senegal, ACWA US $800M deal for desalination project to be cancelled

Senegal, ACWA US $800M deal for desalination project to be cancelled

The government of Senegal has announced plans to a water purchase agreement deal with Saudi Arabia’s ACWA Power worth US $800M.

The announcement was made by Cheikh Tidiane Dieye, Senegal’s Minister of Water and Sanitation, who cited high costs associated with desalination plant project and criticized the long-term financial implications of the project.

READ: Construction of US $ 132M Taghzirt Dam project in Morocco on track

Scope of project

The project, with a production capacity of 400,000 cubic meters per day, was to play a crucial role in providing clean water to the growing population of Senegal. ACWA Power’s involvement included infrastructure, design, financing, construction, operation, and maintenance of the desalination plant.

The project’s implementation was to be through a public-private partnership model to reflect a strategic approach to infrastructure development, combining government initiatives with private sector capabilities to deliver impactful solutions.

Dieye emphasized that the project posed a significant financial burden and was based on “short-termist” planning, highlighting concerns over potential increases in water prices and the lack of environmental assessments. He also noted that the plant’s capacity would soon be insufficient to meet Dakar’s growing needs, given the city’s expanding population. Senegal’s decision reflects broader challenges the country faces in balancing infrastructure needs with financial sustainability, especially in the context of water scarcity exacerbated by climate change.

 

 

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