Management Service Gambia (MSG)

Cancelled

Failure

In March of 1993, Management Service Gambia (MSG) signed a 10-year lease with the state-owned Utilities Holding Corporation (UHC), the owners of The Gambia's water, waste and electricity infrastructure assets. The government established UHC to monitor MSG’s activities and take decisions on investments. MSG was to take responsibility for collections, operations, maintenance, and renewal of small infrastructure assets as well as for formulating proposals for more substantial investments in the Greater Banjul Areas and a number of other urban areas. The Gambia Utility Corporation (GUC) - a public entity - was established in 1972 to provide water supply and electricity distribution services to the capital Banjul and to the provincial cities. Sector performance was poor. A contract was awarded following an open international tendering procedure. MSG was 99% owned by SOGEA, a group of private French companies headed by Compagnie Generale des Eaux (later renamed to Veolia Environnement in May 2003). The French electricity company GITE owned the other 1%. UHC was to be financed by the difference between overall sector revenues and the lease fee retained by MSG. However, there was a lack of clarity between the state holding company which owned the water infrastructure (UHC) and MSG regarding responsibilities for maintenance and investment. Relations deteriorated after the 1994 military coup when the private operator initiated a campaign to disconnect non-payers. In February 1995, less than a year and a half after the private operator took control; the government revoked the contract after it was reported to have arrested staff under allegations of contractual failures. UHC was left with the management responsibility of the assets and later became the 97% state-owned National Water & Electricity Company (NAWEC).

World Bank Group

Project

Water Supply and Storage, Power Transmission, Power Generation (CCGT), Waste Processing and Treatment, Government