1
Background
The Government of Senegal (GoS) and the
National Sanitation Office of Senegal (ONAS) (the “Client”) identified a
site to develop a new wastewater treatment plant (WWTP) in Tivaouane Peulh that
will be developed as a public private partnership (PPP) designed under a hybrid
PPP scheme as part of the Senegal Water Security and Sanitation Multi-Phased
Program by the World Bank (the
"Project"). IFC Advisory Services (“IFC Advisory”) has been retained by the
GoS to provide direct
transaction advisory services develop the Project.
The Project will
be developed under a hybrid PPP scheme whereby ONAS seeks to identify a private
sector participant to design, partly finance, build and operate the WWTP while
the Government will provide between 40 and 60%
of CAPEX funding through a WB loan, to improve
the affordability of the Project. The duration of the PPP contract is expected
to be between 20 and 35 years (to be confirmed).
The proposed WWTP
is expected to have a design capacity of 39,000m3/d. The WWTP design
is expected to include a primary, secondary and tertiary treatment process, as
needed to safely enable treated wastewater reuse in agriculture. The proposed
Tivaouane Peulh WWTP would be a greenfield plant that would double Dakar’s current
wastewater treatment capacity.
IFC will appoint
an engineering firm with international experience (the “Consultant”) specialized
in wastewater treatment, to provide technical, environmental and social support
during Phase 1 (technical, environmental and social due diligence, PPP feasibility
assessment, EIA scoping) and - if applicable - Phase 2 (PPP tender implementation) of
the Project. The support relates to all technical, environmental and social aspects
of the Project, including project diligence, providing inputs to the preparation
of tender documents and any other transaction documents, and support in
conducting a fair and transparent tender process, through to commercial close. Legal
consultants will be procured separately.
2
The Project
Most of Dakar relies on onsite sanitation,
primarily latrines. Only 32% of the population is covered by the sewerage
system (122,258 connections). The Office National d’Assainissement du
Sénégal (ONAS) manages both onsite and sewered sanitation, as well as
stormwater management. According to World Bank data,
although Greater Dakar consumes 445,555 m³ of water each day, only 126,000
m³/day of wastewater is collected by the sewage system. The total capacity of
Greater Dakar’s 12 existing wastewater treatment plants (WWTP) is only of 35,531
m³/day, treating just 28% of the collected wastewater, with only about 9,500
m³/day treated to tertiary levels.
Poor sanitation affects health,
productivity, and the environment. It also increases disease, infant mortality,
and school absenteeism and disproportionately impact women who manage water
collection, cooking, cleaning, and childrearing.
To overcome this problem, the Government
of Senegal (GoS) and ONAS seek to extend the collective sanitation system to
the East area of Dakar in order to cover the departments of Pikine and
Guédiawaye and to develop a new centralized WWTP in Tivaouane Peulh. The
Project is intended to have a design, finance, build, operate, transfer (DFBOT)
structure.
The
following preliminary study was carried out by the Ministry of Water and
Sanitation, the ONAS and World Bank:
· Design study done by CID and HydroConsult
International « Etudes d’assainissement du système Est de Dakar »
(2018-2020).
3
Project Phases
IFC’s
advisory services are to be carried out in 2 phases, in each case, subject to
confirmation by IFC and the Client to proceed to the next phase:
·
Phase 1: Transaction
Preparation: Technical and Environmental
investigations; Feasibility Assessment, PPP Structuring and approvals, followed
by, after a consultation period, and if approved by the Client:
·
Phase 2: PPP Transaction
Implementation: Tender implementation; bid
evaluation; negotiation and award.