Senegal Cancels $759M Water Project Amidst Growing Demand
Senegal's Water and Sanitation Minister, Cheikh Tindane Nieye, has announced the termination of a water purification project contract worth 700 million euros (759 million US dollars) with Acwa Power Ltd of Saudi Arabia. The project, which has not yet begun, involved building and operating a desalination plant near Dakar to produce over 400,000 cubic meters of water daily.
The decision comes amidst growing water demand in Dakar, with the city's population expected to reach over 3.5 million in the next 3 to 4 years, requiring more than 400,000 cubic meters of water daily. The minister cited potential price increases due to the technology used as a factor in the decision. President Basirou Faye, who won the March 24 elections, had pledged to review and potentially cancel deals signed by the previous administration. The Senegalese government is currently reviewing the potential consequences of breaking the contract with Acwa Power. The company contracted to oversee the demolition of the water treatment project is Deloitte. Acwa Power can sue for breach of contract at the International Court for Arbitration or settle the matter out of court if aggrieved by Senegal's decision.
The termination of the water purification project contract with Acwa Power Ltd is a significant development in Senegal's water management strategy. The government is prepared to face potential legal consequences and review the project's impact on its future water needs.
