Senegal has developed a strategy using public-private partnerships (PPPs) to address its rural electrification challenges, but implementation has faced difficulties. The strategy includes two programs - PPER for large concessions and ERIL for smaller local initiatives. However, of the six large PPER concessions planned by 2012, only two have been assigned. Success requires sound economics based on demand data, securing political support, and a transparent bidding process, but stakeholder alignment and delays have hindered progress. Access to reliable data on demand and clear rules around concession areas are still needed to encourage more private investment in rural electrification.

1. Notes on Senegal’s PPP
strategy for its rural
electrification program
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2. Rural Electrification
Rural electrification is a complicated issue
because:
• of user affordability
• rural inaccessibility
• low population densities and dispersed
households
• low project profitability, and
• over-dependence on subsidies and
increasing fiscal deficit.

3. Senegal and its infrastructure
gap
• 196.000 km2 (1/3 of France or ½
of Japan)
• 14 million population of which
57% live in a rural areas.
• GDP per capita is US$ 1,046.59
(2013), more than 60% of the
rural population lives under the
poverty line.
• Only 56% of the total population
- but significantly only 26% of the
rural population- has access to
electricity.

4. Agence Sénégalais
d’Electrification Rurale ASER
ASER was created as
centralized agency for RE and
developed a two pronged
strategy:
• PPER: Large Priority RE
program.
• ERIL: Small sized programs
based on local initiative.

5. Agence Sénégalais
d’Electrification Rurale ASER
PPER:
Only 6 concessions
were signed by 2012
and still 2 large
concessions are to
been assigned.

6. Agence Sénégalais
d’Electrification Rurale ASER
ERIL: Uncertainty in ERIL framework discourages
investment
Hence, the rural electrification issue is not

7. Requirements for the
success of a PPP program
The three basic requirements that make a
PPP work are:
• Economics
• Politics
• Execution.

8. Economics
Successful PPP programs require:
• sound fundamentals;
• a structure that optimizes cost, quality, and
service.
Although in theory the two concession models,
ensure profitability for operators, profitability
still has to be proven.

9. Economics: Fundamentals
By crossing
data from
Mobile use
and electricity
use D-4-D
provided data
for
assessment
of potential
demand and
thus the
financial
viability of

10. Economics: Fundamentals
Determination of zones and their financial viability

11. Politics
Successful PPP require:
• Securing political champions
• Building stakeholder support
• Environmental & social
impact
• Solid regulatory environment

12. Politics
Securing political champions, fully achieved in
Senegal, with the full support of top leaders.

13. Politics
• Building stakeholder
support, which has
proven difficult:
i. High political profile
of electrification
issues resulting in
lack of continuity
ii. Obstacles in
aligning objectives
between ASER &
SENELEC;

14. Politics
• Environmental & social
impact
i. cumbersome process to
assess of environmental and
social impacts
• Solid regulatory environment
i. Negotiations between
stakeholders accounting for
long delays

15. Execution
Successful PPP require:
• the right mix of local and global experts
• support a transparent, competitive bid
process and
• plan for ongoing contract monitoring and
review.

16. Conclusions
Senegal’s Rural Electrification program
has tackled many issues proactively but
has encountered difficulties to gain
momentum
• For private investors, the access to real
data will enable sound feasibility & viability
studies, and reactivate private investment in
both PPER & ERIL.
• Inherent conflict of ERIL projects stepping
into PPER areas under concession must be
addressed. Private investors need a clear

17. Thank you
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