In Senegal, the rate of access to sanitation is estimated at 48% in 2017[1] with 5% of the population connected to the sewerage system: this implies a significant need for onsite sanitation services. In a context of achieving universal access to drinking water and quality sanitation by 2030, significant investments in the sector and the implementation of innovative financing mechanisms will be required.
To this end, the National Sanitation Office in Senegal (ONAS), the United States Agency for International Development (USAID) through its Water, Sanitation and Hygiene Finance Project (USAID WASH-FIN), the Delegation for Youth and Women’s Entrepreneurship (DER/FJ), and the Association of Sanitation Stakeholders in Senegal (AAAS) have initiated the Sludge Trucks Fleet Renewal Project (PARC).
Stakeholders in Senegal (AAAS) have initiated the Sludge Trucks Fleet Renewal Project (PARC).
For its first phase, taking place over the period 2020-2022, an overall budget of CFA 2 billion has been earmarked to finance the acquisition of 40 new trucks. This mobilization is only the first in a series of fund-raising efforts as PARC aims to replace all obsolete trucks, i.e. a project to renew 254 trucks for a total amount of CFA 12 billion over five years.
The acquisition of the new trucks, which will be assembled in Senegal, will be done through a credit mechanism facilitated by the DER/FJ. In this way, not only will the septic tank cleaning operators be able to improve their performance and reduce environmental damage, but they will also benefit from USAID WASH-FIN’s technical assistance to strengthen their technical and financial capacities, which are essential to ensure smooth repayment of the granted loans. The AAAS will also be called upon to contribute to the monitoring of the beneficiaries for which a charter of good conduct will be signed.
PARC is thus a response to the major problem of access to credit that operators face, despite the level of profitability of their activities. The persistence of this constraint can be explained, inter alia, by the absence of operating contracts that prevent visibility on revenue sources, the lack of reliable and certified financial documentation, the operators’ reluctance to acquire new equipment, their difficulties in meeting investors’ requirements in terms of guarantees, and the lack of investors’ awareness of the opportunities in the sector.
This project is part of the dynamics of the initiatives carried by ONAS, particularly through the Sludge Market Structuring Program (PSMBV) which, through its new orientation, promotes the creation of a market value chain in autonomous sanitation where the management of sewage sludge is one of the flagship activities for which the private sector is a key player.
The official launching of the Sludge Trucks Fleet Renewal Project (PARC) will take place on Thursday, February 18, 2021 from 14:30 pm in the premises of the DER/FJ under the effective presence of Mr. Serigne Mbaye THIAM, Minister of Water and Sanitation and His Excellency Dr. Tulinabo S. MUSHINGI, Ambassador of the United States of America in Senegal.
[1] CPSCP (formerly PEPAM) Annual Review, April 2018