Côte d’Ivoire water distribution company (Sodeci)

 

Context and stakes

Côte d’Ivoire is a West African country with a population of approximately 13 million inhabitants. Abidjan, the economic capital, with 3 million inhabitants, and Yamoussoukro, the political capital with 100,000 inhabitants, are the country's principal cities. Drinking water distribution to the various regions of Côte d’Ivoire, given the high concentration of the population in the cities (approximately 45% urban population), requires a strong organisation, capable of providing this service efficiently.

Until the end of the 50s, the public water service was the responsibility of a State company. When Côte d’Ivoire achieved independence, in order to meet Abidjan's drinking water distribution needs under satisfactory conditions, it was decided to hand this responsibility over to the private sector.

At the time, only the city of Abidjan (177,000 inhabitants in 1960) had piped drinking water: just under 4,000 clients supplied by a network of approximately 180 km.

 

Objectives of the action

Following an international call for tenders, Sodeci (Saur Group) was charged with the provision of the water service. Its main objective was to provide Côte d’Ivoire with a modern public drinking water service, capable of meeting the strong increase in demand effectively, and doing so whilst "Africanising" the management of the company as quickly as possible.

 

Description of the action

Sodeci is a private Côte d’Ivoire company responsible for the public water service throughout Côte d’Ivoire, in the framework of a 20 year concession contract (renewed on 12 December 1987), with exclusive drinking water production and distribution rights in urban areas, excluding rural areas.

The company comes under the authority of the Côte d’Ivoire Ministry of Economic Infrastructures and its share distribution is as follows:

— Saur International : 46.06%

— Private Côte d’Ivoire shareholders : 37.20%

— Sodeci staff : 5.39%

— Sidip : 4.19%

— The State of Côte d’Ivoire : 3.25%

— Others : 3.91%

Responsibilities of each actor:

The State:

— retains ownership of the infrastructures;

— sets the national water policy;

— retains decision-making power over the charging proposed by Sodeci;

— co-manages, with Sodeci, the National Water Fund, intended to finance the sector's infrastructure investments;

— supervises work carried out by Sodeci, and more generally, monitors all of Sodeci's activities.

Sodeci:

— is responsible for the fixed assets it is given charge of;

— is responsible for the use and maintenance of all the installations placed under its responsibility according to the concession contract;

— is responsible for the quality and the continuity of the products and services provided;

— co-manages, with the State, the National Water Fund, intended to finance the sector's infrastructure investments.

 

Results

In quantitative terms:

— over 400 localities served today, compared with only one in 1960;

— over 380,000 clients today (i.e. 6.5 million inhabitants served), compared with under 4,000 clients in 1960;

— over 1,300 staff today, compared with under 400 in 1960;

— approximately 8,000 km of network today, compared with under 200 in 1960;

— over 30,000 new connections per year today, compared with under 3,000 in 1960.

In qualitative terms:

— virtually total "Africanisation" of the management: the President, the Managing Director, all the Operations Directors and virtually all the Technical Directors are Côte d'Ivoire nationals;

— inclusion of African cultural values into the company's management philosophy;

— job feminisation;

— increased training;

— increased budgetary responsibility;

— shorter hierarchical lines of command;

— focus on results;

— introduction of social funds;

— launch of a quality guarantee approach which should lead to ISO9002 certification.

Problems / lessons learned:

In order to improve the sector's unhealthy financial position, on the initiative of the World Bank, the National Hydraulic Fund was transformed into the National Development Fund in 1987.

This new fund is managed directly by Sodeci, under the overall control of the Water Department. Its income is derived from a tax on consumption which raises approximately 78 million francs per year. This is used to finance small-scale extension and renewal works, and the construction of social connections.

There is also, it should be noted, a National Water Fund, with income from a supertax on consumption, which is managed by the Independent Investment Fund. The 44 million francs raised annually in this way are used to finance major sector investments.

Thanks to the introduction of these funds and to the management systems adopted, the water sector has now been self-financing for 10 years.

 

Perspectives and impacts

lThe managerial principles introduced into Sodeci since the company was created have not only allowed excellent management results to be obtained, but have also enabled the company to move beyond the traditional north-south dialogue, and to establish a south-south dialogue (Sodeci is involved in improving the water sector in other African countries) and a south-north dialogue (Sodeci has developed computer products for use by the Saur Group in France).

 

 

Contacts Michel Maruenda, Director, Institutional Relationships and Methods, Saur International, Challenger, 1 avenue Eugène Freyssinet, 78064 Saint-Quentin-en-Yvelines Cedex (France). Tel.: (33) 1 30 60 31 01. Fax: (33) 1 30 60 30 86. E-mail: mmr@saur.frMarcel Zadi Kessy, Chairman and Managing Director, Sodeci, BP 1843, 1 avenue Christiani, Abidjan 01 (Côte d’Ivoire). Tel.: (225) 23 30 02. Fax: (225) 24 20 33.

 

Possible courses of action 6, 8, 12 and 14

 

Localisation: throughout Côte d’Ivoire
Domain of intervention: drinking water distribution
Area of intervention: urban areas
Turnover 1996: 368 000 000 FF
Capital: 40 000 000 FF
Duration: from 1987 to 2007