The State of Senegal and the Eiffage Company signed on Wednesday, December 22 an agreement relating to the Concession of the Autoroute de l’Avenir (SECAA sn) and which marks the entry of the State into the capital of the company responsible for 25% exploitation.
The agreement signed by the Minister of Finance and Budget, Abdoulaye Daouda Diallo, and Xavier Idier, the managing director of the Eiffage company of the Autoroute du Futur concession (Secca Sn) also concerns the reassessment of the license fee. Annual state property representing 2% of the annual turnover of SECAA, with a minimum of 800 million FCFA per year instead of 1000 FCFA per year in the old contract. To this must also be added the readjustment of the clauses and deadlines for sharing the fruits of the concession, the freezing of the indexation of the tariffs on inflation for five (05) years, the realization of the lighting by the holder on all the linear of the current section and at the diffusers.
According to the details contained in a press release from the ministry, the State also obtained the readjustment of the clauses and deadlines for sharing the fruits of the concession as well as the capping of the target Internal Rate of Return (Sorting) at 17% instead of 20.1% in the additional contract and with correction of the underlying assumptions to better reflect the reality of the Senegalese economy.
“This is for a fairer sharing of future profits with the state and users. Because, the net flows to be received by the State are now estimated at 305.5 billion FCFA ($ 523 million) over the period 2021-2044, with annual progressive changes and an average of 13 billion FCFA (22, $ 2 million), ”said the Minister of Finance and Budget.
Note that negotiations have started since 2019.
