Societe d'exploitation des eaux du Niger (SEEN)

active

In March 2001, Vivendi Water (known as Veolia Environnement as of May 2003) signed a 10 year lease contract in Niger following an international invitation to tender organized with the cooperation of the World Bank. Vivendi, under the project company Societe 'Exploitation des Eaux du Niger (SEEN), was to assume operational control of the infrastructure assets previously held by the state-owned Societe Nationale de I 'Eau (SNE - National Water corporation), which was created in 1987 as an autonomous and self-supporting corporation, responsible for developing the urban water sub-sector, improving water service coverage and ensuring resource management. SNE had produced and distributed water in 51 urban centers. The lease contract covered the provision of water services for Niger's ten million people, including Niamey, the capital city which had 600,000 inhabitants. The annual water production amounted to about 32 million m3, while water sales amounted to 26 million m3. The private operator, Societe 'Exploitation des Eaux du Niger (SEEN), was responsible for for (i) production, transmission and distribution of potable water in urban areas; (ii) funding and implementation of an infrastructure rehabilitation and renewal program under a specific contract (on an annual basis); and (iii) implementation of some rehabilitation and extension works funded by the asset holding company. In addition, Societe de Patrimoine des Eaux du Niger (SPEN), a public asset holding company, was responsible for ownership of facilities, debt service, planning and control/supervision of rehabilitation, renewal, and extension of infrastructure along with controlling the quality of water services. Under the reform plan, SNE was dissolved and replaced with SPEN. SPEN's relationship with the Government was governed by a concession contract under which: (a) the management of ongoing projects were transferred from the Government to SPEN; (b) new works were concessioned to SPEN; and (c) arrangements were specified for replacing SPEN with the private operator, if the former failed to achieve its objectives. SEEN was the project company in which Vivendi held 51% of the shares; 34% of shares were held by local shareholders, 10% by workers and 5% by the government. As part of the deal, the World Bank was to finance the overhaul and extension of the water sector with an IDA credit of US$48 million, with Agence Franciase de Developpment contributing an additional US$7 million, West African Development Bank US$10.15 million, Veolia US$3.4 million for new water connections, and the government contributing US$9.95 million. In order to soften the impact of sector reform on water tariffs, the IDA funds for urban water investments (US$33 million) were to be passed on to the sector (through SPEN), in the following form: (a) 60% as equity capital (not as grant), and (b) 40% as a loan on terms: 20 years including 10 years of grace, at an annual interest rate of 5.4%. The project was renewed for another period of 10 years in 2011. Other "development bank support" is West Africa Development Bank * Needs additional info on renewal of lease contract (granted in 2011).