Societe des Eaux et de l'Assainissement de Constantine

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In June 2008, Société des Eaux de Marseille (SEM) signed officially with the Algerian government a 5.5-year management contract for the Société des Eaux et de l'Assainissement de Constantine (Seaco), the company in charge of water supply and sanitation of the city of Constantine. Constantine was the second most populated city in Algeria (1.2 million inhabitants). Société des Eaux de Marseille (SEM) was a French company formed in equal partnership by Suez and Veolia and was in charge of water services in France and around the world. The contract was awarded in May 2008 by direct negotiation. The Algerian government had initiated a competitive bidding process in 2006, but had to cancel it in August 2007 due to the lack of expressions of interest. The contract represented about US$55 million revenue for the private operator. No information was available on payment and incentive scheme. Under the term of the agreement, Société des Eaux de Marseille (SEM) was expected to provide 24 hours delivery at the end of the contract period. In 2008, many areas of Constantine were supplied water only every other day.