ACWA Power, Senegal ink US $800M water purchase agreement

Saudi energy giant ACWA Power and the government of Senegal have sealed a water purchase agreement deal worth US $800M to address water challenges in Senegal.

Senegal’s Ministry of Water inked the deal which is set to see a desalination plant set up in Dakar. The project, with a production capacity of 400,000 cubic meters per day, will play a crucial role in providing clean water to the growing population of Senegal.

ACWA Power’s involvement in the infrastructure, design, financing, construction, operation, and maintenance of the desalination plant underscores its commitment to sustainable development and addressing water scarcity issues.


Water stress in Senegal

The partnership between ACWA Power and Senegal demonstrates the potential for public-private collaborations to tackle pressing challenges such as water supply and infrastructure development. By leveraging its expertise and resources, ACWA Power aims to contribute to Senegal’s socio-economic development while ensuring the efficient and sustainable management of water resources.

The project’s implementation through a public-private partnership model reflects a strategic approach to infrastructure development, combining government initiatives with private sector capabilities to deliver impactful solutions.

Water security is the bedrock of Senegal’s development and key to its socio-economic development goals.  Deteriorating water resources and an inadequate institutional framework, however, are threatening both the country’s water security and economic growth.

Current water withdrawals are projected to increase by 30 to 60% by 2035. Water-related extreme events and pollution already cost Senegal over 10% of gross domestic product (GDP) every year, threatening the country’s ambition to become an emerging country, even more so following the Coronavirus disease 2019 (COVID-19) pandemic. The Greater Dakar area is especially at risk, concentrating 50% Senegal’s GDP production and close to a third of its population, and will need to diversify water sources and improve cross-sectoral coordination.