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SENEGAL: Review and update of SENELEC's Financial Model

The Government of Senegal requested PPIAF support to review and SENELEC's financial model to mitigate risks and assess the impact of sector restructuring options. Indeed, recurring problems experienced by SENELEC led the Government of Senegal proceed to a sector diagnostic in October 2010, which permitted the identification of two causes of the situation: i) the growing gap between fast growing demand and an insufficient, costly and unreliable supply of electricity; and ii) SENELEC’s persistent financial difficulties. To handle this situation, the Government adopted a comprehensive emergency plan towards the sector’s operational and financial recovery to restore SENELEC’s financial equilibrium. To take into consideration recent regulatory changes and allow it to assess delays in the implementation of the restructuring plan; the Government expressed the need to review SENELEC’s Financial Model. The revised model generates various scenarios that can serve as a basis for discussion with development partners in the context of the sector’s restructuring.