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Seychelles Signs Second Pioneering Project with Financing Partners

23.01.2012

The Seychelles Government has signed yet another landmark project with funding partners, the European Investment Bank (EIB), for a sum of EUR 27 million for a water and sanitation project for the Seychelles Public Utilities Corporation (PUC).

This innovative financing project, the second of its kind to be signed with Seychelles following the internet submarine cable project launched in 2011, was described as a prime example of sustainable financing by the Minister for Foreign Affairs, Mr. Jean-Paul Adam:

“When we talk about sustainable development, we need to look at sustainable financing. Traditionally Small Islands Developing States like Seychelles have always had difficulty in raising large scale funding for development projects, which has forced us to borrow at commercial rates thereby contributing to a high debt burden,” said the Minister.

The project, which is being co financed by the ‘Agence Française de Développement’, the European Union and the African Development Bank, was signed by the Principal Secretary for Finance, Mr. Ahmed Afif, and the EIB Head of the Southern Africa and Indian Ocean Division, Mr. Serge Klumper.

The financing is being provided on concessionary terms and also include a component of technical assistance grants from the European Development fund (EDF).

Also present at the signing was the Head of the European Delegation to Seychelles, Ambassador Alessandro Mariani, and French Ambassador to Seychelles, Mr. Philippe Delacroix, as well as representatives from the Ministry of Finance, the Ministry of Foreign Affairs, the EU, and PUC.

Specific projects to benefit from the programme include an extensive programme to reduce non-revenue water, including both technical and commercial losses, increasing the capacity of 4 existing desalination plants on Mahé, La Digue and Praslin, improvements to the Hermitage and Cascade water treatment plants, a first time sewerage system on La Digue and extensions to the Mahé sewerage network. The water network will also be rationalised to improve pressure management and reduce leakages.

In addition to these projects, grants will be provided for a capacity building programme at the Public Utilities Corporation.

PUC’s CEO Mr Philip Morin has said that these projects will enable PUC to give better water and sanitation services, increase and optimize operational performances and generate a higher level of environmental performance. “The direct social impact these projects will have on the population will be the improved social wellbeing of the nation as service will improve,” said Mr Morin.

Editors Notes:

 

  • · The Public Utilities Corporation (PUC) has said the Seychelles Water and Sanitation EIB/AFD project has got different components. Firstly, the Rehabilitation of Water Treatment Plants e.i refurbishment of both the Hermitage and Cascade water treatment plants.

As part of the Non Revenue Water programme, there will be the replacement of non-performing pipelines and installation of new ones at Hermitage plus new pressure management valves at Providence, Eden Island, Hermitage and Victoria among other projects.

It will also see the upgrading and refurbishment of all desalination plants and the feasibility study for the raising of the La Gogue Dam. Water Demand Management, Energy Efficiency Programme, New La Gogue Network (water treatment plant, pipelines, pumping stations and water tanks) Sewerage System for Mahe, a new Sewerage system for La Digue are also part of the project.

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