Sunu 37 Milliards: AEE Power Contrat Sénégal Resolution Sought

• The collective Sunu 37 milliards has urged Senegal's Energy Minister, Abdourahmane Diouf, to address the stalled rural electrification contract with AEE Power EPC Espagne.
• Nearly 37 billion CFA francs were reportedly paid to the company by June 2024, despite a former minister's note confirming no work had commenced by August 26, 2024.
• Sunu 37 milliards proposes either mobilizing a 40 billion CFA francs guarantee fund to complete the project or terminating the contract if legally permissible.
• The project aims to electrify 1,600 villages, and the collective seeks clarity on guarantees, party obligations, and legal solutions for project continuity.
• This case highlights significant concerns over public fund usage and contract enforcement in large-scale state infrastructure projects in Senegal.

Lawyers advising on public procurement or infrastructure projects in Senegal should closely monitor this case for precedents regarding contract termination, the enforcement of performance guarantees, and the legal implications of non-performance by contractors.

The collective known as Sunu 37 milliards has formally appealed to Senegal's Minister of Energy and Petroleum, Abdourahmane Diouf, seeking clarity and resolution regarding a significant rural electrification contract. This project, awarded to AEE Power EPC Espagne, has come under intense scrutiny following reports that nearly 37 billion CFA francs had been disbursed to the company by June 2024, yet the promised work remains largely unstarted.

Concerns escalated after a note dated August 26, 2024, signed by former Minister Birame Souleye Diop, explicitly stated that no work had commenced on the project. This revelation has fueled widespread questions concerning the utilization of public funds and the overall progression of the market. The initiative aims to provide electricity to 1,600 villages, but many households continue to live without power, highlighting the urgent need for intervention and accountability.

In response to the stalled project, Sunu 37 milliards has presented Minister Diouf with two distinct pathways for resolution. The first option proposes the activation of the market's guarantee fund, valued at 40 billion CFA francs. The collective suggests that mobilizing these funds would enable the continuation and completion of the electrification works, thereby benefiting the communities still awaiting power. This approach is also seen as a means to assess the project's overall viability and to provide crucial insights for any ongoing legal proceedings.

The second proposed course of action involves the outright résiliation contrat with AEE Power EPC Espagne. This termination, however, would be contingent upon its permissibility under existing legal and contractual frameworks. Should the contract be rescinded, the collective advocates for a subsequent re-awarding of the project through a transparent process that strictly adheres to public procurement rules and safeguards the interests of the State of Senegal. Beyond these primary proposals, Sunu 37 milliards also seeks comprehensive clarifications on the status of all guarantees, the specific obligations of each party involved, and the identification of legally sound solutions to ensure the project's ultimate continuity.

The situation surrounding the AEE Power EPC Espagne contract underscores critical legal and financial challenges within Senegal's public procurement landscape. The reported payment of 37 billion CFA francs to a contractor for a project where work has not begun, coupled with the existence of a 40 billion CFA francs guarantee, raises significant questions about financial oversight and contract enforcement. The collective's demands highlight the imperative for robust mechanisms to protect public funds and ensure that contractors fulfill their obligations under a marché public Sénégal.

Lawyers advising on public procurement or infrastructure projects in Senegal should closely monitor this case for precedents regarding contract termination, the enforcement of performance guarantees, and the legal implications of non-performance by contractors. The call for a transparent re-attribution process, aligned with the principles of commande publique Sénégal, emphasizes the increased scrutiny on the execution of large-scale state projects and the potential for legal challenges or arbitration related to public funds, especially in instances of non-exécution contrat.

Lawyers advising on public procurement or infrastructure projects in Senegal should closely monitor this case for precedents regarding contract termination, the enforcement of performance guarantees, and the legal implications of non-performance by contractors. It highlights the increased scrutiny on the execution of large-scale state projects and the potential for legal challenges or arbitration related to public funds.

Source: Original reporting via LII Quotidien