Gambiaj.com – (DAKAR, Senegal) – The Senegalese government announced on Thursday that it will terminate a 459 billion FCFA contract with the Saudi group Acwa Power for the supply of water and the construction of a desalination plant. The contract, concluded three months ago under the previous administration, is the first major foreign agreement to be publicly revoked by the new authorities.

Minister of Water Cheikh Tidiane Dièye communicated the decision to AFP, citing misalignment with the current government’s strategic priorities. “This project does not fit into the government’s strategic options. We have decided not to pursue it,” Dièye stated.

This contract, signed at the end of March during the final days of Macky Sall’s presidency, involved a public-private partnership between the National Water Company of Senegal (Sones) and Acwa Power.

The deal was one of the largest private investments in Senegal, with Acwa Power committing 459 billion FCFA for the construction and operation of the country’s second seawater desalination plant. The plant, planned near the Pink Lake east of Dakar, was expected to produce 400,000 cubic meters of water per day, addressing the growing water demand in the capital.

The decision to break the contract comes after Bassirou Diomaye Faye’s victory in the March presidential election. Since taking office, the new administration has been scrutinizing existing agreements in various sectors, including mining, oil, and gas, to ensure they align with national interests and regulatory standards.

Minister Dièye emphasized that the contract terms did not serve Senegal’s best interests, highlighting the high annual cost of water purchase and the anticipated price increase due to the desalination technique. Additionally, necessary environmental studies had not been conducted.

Dièye expressed concerns about the long-term feasibility and economic burden of the project, describing it as an expensive short-term solution. He assured that state lawyers are reviewing the legal implications of the contract termination, but noted that since construction had not yet begun, any potential legal fallout would be minimal.

The decision underscores the new government’s commitment to reassessing and renegotiating foreign investments to ensure they benefit Senegal’s economy and population.