LA SENELEC FREINEE A BRAZZAVILLE
- The Société Nationale d'Électricité du Sénégal (Senelec) encounters unexpected hurdles in its international venture.
- Senelec's international expansion has been abruptly halted in Congo-brazzaville.
- The energy company had previously achieved a remarkable feat by outperforming several renowned international competitors.
Senelec’s Congo-Brazzaville Expansion Plans Face Setback
Table of Contents
- Senelec’s Congo-Brazzaville Expansion Plans Face Setback
- Senelec’s Congo-Brazzaville Expansion Plans Face Setback
- Senelec’s Aspiring Expansion meets Resistance
- Contract Suspension and Labor Disputes
- Caught in the Crossfire
- Modernization Program and Financial Backing
- Hope Remains, but Uncertainty Persists
- Impact on senelec’s Expansion
- Senelec’s Future Strategy
- PAMACEL Project
- FAQ: Senelec’s Congo-Brazzaville Project Setback
- Why was Senelec’s contract in Congo-Brazzaville suspended?
- What were the main challenges facing the congolese electricity sector?
- What is Senelec’s gas-to-power strategy?
- What is the role of the World Bank in Congo’s electricity sector?
- What is the PAMACEL Project?
- What are the next steps for Senelec in Congo-Brazzaville?
- Senelec’s Competitors in the Tender
The Société Nationale d’Électricité du Sénégal (Senelec) encounters unexpected hurdles in its international venture.
Senelec’s Aspiring Expansion Meets Resistance
Senelec’s international expansion has been abruptly halted in Congo-brazzaville. The Senegalese energy company, having secured a important lease contract for electricity distribution and marketing, now finds itself embroiled in a diplomatic and labor dispute.
The energy company had previously achieved a remarkable feat by outperforming several renowned international competitors. According to reports, Senelec surpassed “le Suisse Hydro Operation international, le Chinois Inhemeter, l’Israélien PowerCom ou encore le Libanais Mrad Company for trade, Industry and Contracting” in an international tender launched last May.
Contract Suspension and Labor Disputes
This success, which marked a crucial step in Senelec’s regional expansion strategy, proved short-lived.Just two weeks after the contract was signed, Congolese Prime Minister Anatole collinet Makosso ordered its suspension, yielding to pressure from the unions of Énergie électrique du Congo (E2C).
Pape Toby Gaye,the Director-General of Senelec,received official notification from the Congolese Minister of Energy and Hydraulics,Émile Ouosso,informing him of the decision. The suspension was enacted “en vue d’optimiser la gestion des relations sociales au sein de la société Énergie électrique du Congo dans un contexte caractérisé par une contestation syndicale”.
Caught in the crossfire
Senelec is now caught in a social conflict for which it bears no responsibility. A source close to the Congolese government stated that “le processus de sélection s’est pourtant passé dans la transparence la plus totale” and suggested that “ce qui pose visiblement problème, c’est qu’il s’agit d’une société étrangère”.
Despite this, Senelec was selected for its expertise and competence, aligning wiht the criteria set by Minister Ouosso. In June, he stated, Le délégataire n’apportera aucun franc.Nous le choisirons en fonction de sa compétence et de son expertise dans le secteur
.
Modernization Program and Financial Backing
The contract was part of an ambitious program to modernize the Congolese electricity sector, supported by “un accord de prêt de 100 millions de dollars accordé par la Banque mondiale”.
Hope Remains, but uncertainty Persists
Hope is not entirely lost for Senelec. according to Olivier Mazaba Ntondele, coordinator of the Projet d’amélioration des services d’électricité (PASEL) and official at the Agence de régulation du secteur de l’électricité (Arsel), “le contrat restera suspendu mais il n’est pas résilié”.
The Congolese government has established a technical inter-ministerial commission to verify the terms of the agreement. The commission’s findings will be decisive for Senelec’s future presence in Congo.
Impact on Senelec’s Expansion
This suspension is a setback for Senelec, which viewed the contract as an prospect to showcase its expertise beyond West Africa. Senelec must now wait to see if it can contribute its know-how to a struggling Congolese electricity sector, characterized by “d’importantes pertes commerciales qui s’élèvent à plus de 41% en 2023”.
Senelec’s Future Strategy
Senelec aims for worldwide coverage by 2029. To achieve this, Senelec plans to implement a gas-to-power strategy to increase its production capacities. According to Djiby Dieng, this strategy “consiste à remplacer les centrales existantes qui fonctionnent avec du fuel par du gaz, mais également de mettre en place de nouvelles unités de production qui vont transformer le gaz en électricité afin d’arriver à une baisse du prix de l’électricité”.
PAMACEL Project
senelec has established a project unit called Cellule PAMACEL & Efficacité Energétique for the execution of the program financed by the African Growth Bank (BAD). The unit is supported by various Senelec departments involved in the implementation and by a consulting firm (Consulting Engineer).
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Senelec’s Congo-Brazzaville Expansion Plans Face Setback
The Société Nationale d’Électricité du Sénégal (Senelec) encounters unexpected hurdles in its international venture.
Senelec’s Aspiring Expansion meets Resistance
Senelec’s international expansion has been abruptly halted in Congo-brazzaville. The Senegalese energy company,having secured an vital lease contract for electricity distribution and marketing,now finds itself embroiled in a diplomatic and labour dispute.
The energy company had previously achieved a remarkable feat by outperforming several renowned international competitors. According to reports, senelec surpassed “le Suisse Hydro Operation international, le Chinois Inhemeter, l’Israélien PowerCom ou encore le Libanais mrad Company for trade, Industry and Contracting” in an international tender launched last May.
Contract Suspension and Labor Disputes
This success, which marked a crucial step in Senelec’s regional expansion strategy, proved short-lived. Just two weeks after the contract was signed, Congolese Prime minister anatole Collinet Makosso ordered its suspension, yielding to pressure from the unions of Énergie Électrique du Congo (E2C).
Pape Toby Gaye, the Director-General of Senelec, received official notification from the Congolese Minister of Energy and Hydraulics, Émile Ouosso, informing him of the decision. The suspension was enacted “en vue d’optimiser la gestion des relations sociales au sein de la société Énergie électrique du Congo dans un contexte caractérisé par une contestation syndicale”.
Caught in the Crossfire
senelec is now caught in a social conflict for which it bears no obligation. A source close to the Congolese government stated that “le processus de sélection s’est pourtant passé dans la transparence la plus totale” and suggested that “ce qui pose visiblement problème, c’est qu’il s’agit d’une société étrangère”.
Despite this, Senelec was selected for its expertise and competence, aligning with the criteria set by minister Ouosso. In June, he stated, Le délégataire n’apportera aucun franc. Nous le choisirons en fonction de sa compétence et de son expertise dans le secteur
.
Modernization Program and Financial Backing
The contract was part of an ambitious program to modernize the Congolese electricity sector, supported by “un accord de prêt de 100 millions de dollars accordé par la Banque mondiale”. this program, known as the Projet d’Amélioration du Service d’Electricité (PASE), aims to improve the reliability and efficiency of the power supply in key areas of Congo-Brazzaville.
Hope Remains, but Uncertainty Persists
Hope is not entirely lost for Senelec. According to Olivier Mazaba Ntondele, coordinator of the Projet d’amélioration des services d’électricité (PASEL) and official at the Agence de régulation du secteur de l’électricité (Arsel), “le contrat restera suspendu mais il n’est pas résilié”.
The Congolese government has established a technical inter-ministerial commission to verify the terms of the agreement. The commission’s findings will be decisive for Senelec’s future presence in Congo.
Impact on senelec’s Expansion
This suspension is a setback for Senelec, which viewed the contract as an possibility to showcase its expertise beyond West Africa. Senelec must now wait to see if it can contribute its know-how to a struggling Congolese electricity sector, characterized by “d’importantes pertes commerciales qui s’élèvent à plus de 41% en 2023”. This high level of commercial losses underscores the challenges facing Congo-Brazzaville’s electricity sector, highlighting the need for modernization and efficiency improvements.
Senelec’s Future Strategy
Senelec aims for worldwide coverage by 2029. To achieve this, senelec plans to implement a gas-to-power strategy to increase its production capacities. According to Djiby Dieng, this strategy “consiste à remplacer les centrales existantes qui fonctionnent avec du fuel par du gaz, mais également de mettre en place de nouvelles unités de production qui vont transformer le gaz en électricité afin d’arriver à une baisse du prix de l’électricité”. This transition to gas power is also aimed at reducing Senelec’s carbon footprint and promoting a more lasting energy mix.
PAMACEL Project
senelec has established a project unit called Cellule PAMACEL & Efficacité Energétique for the execution of the program financed by the African Advancement Bank (AfDB). the unit is supported by various Senelec departments involved in the implementation and by a consulting firm (Consulting Engineer).
FAQ: Senelec’s Congo-Brazzaville Project Setback
Why was Senelec’s contract in Congo-Brazzaville suspended?
The contract was suspended due to pressure from Congolese labor unions (E2C) concerned about the potential impact on their members. The Congolese government intervened to address these social and labor concerns.
What were the main challenges facing the congolese electricity sector?
the Congolese electricity sector faces meaningful challenges, including high commercial losses (over 41% in 2023), aging infrastructure, and a need for modernization to improve reliability and efficiency. The PASE project aims to address some of these issues.
What is Senelec’s gas-to-power strategy?
Senelec’s gas-to-power strategy involves transitioning from fuel-powered plants to gas-powered plants. This will both increase electricity production capacity and reduce the cost of electricity, and lower carbon emissions.
What is the role of the World Bank in Congo’s electricity sector?
The world Bank is supporting the modernization of the Congolese electricity sector through a $100 million loan, which is part of the Projet d’Amélioration du Service d’Electricité (PASE).
What is the PAMACEL Project?
The PAMACEL (Projet d’Appui à la Maitrise d’Ouvrage et au Renforcement des Capacités de SENELEC) project is designed to boost Senelec’s capacity to deliver energy projects.
What are the next steps for Senelec in Congo-Brazzaville?
Senelec must await the findings of the inter-ministerial commission established by the Congolese government. The commission will review the terms of the agreement and make recommendations that will determine Senelec’s future involvement in the country.
Senelec’s Competitors in the Tender
Here’s a overview of the companies Senelec outranked to win the lease contract:
| Competitor Company | Country of Origin | Core Business |
|---|---|---|
| Le Suisse Hydro Operation international | Switzerland | Hydroelectric operations and international energy projects |
| Le Chinois Inhemeter | China | Manufacturing and distribution of smart meters and energy solutions |
| L’Israélien PowerCom | Israel | Development and deployment of advanced power line interaction technologies |
| le Libanais Mrad Company for Trade, Industry and Contracting | Lebanon | Construction, engineering, and trading in various industrial sectors |