Manantali Dam
Encyclopedia
The Manantali Dam is a multi-purpose dam on the Bafing
river in the Senegal River
basin, 90 km to the south-east of Bafoulabé
, in Mali
's Kayes Region
.
, or OMVS) was set up by Mali, Mauritania and Senegal to develop the agricultural and hydropower potential of the basin. The World Bank declined to fund the dam in 1979, considering it an unreasonable investment. However, financing was secured from mainly European and construction on the dam began in 1982. It was completed in 1988, but without the hydropower plant. In 1989 the Mauritania–Senegal Border War stopped all work on the project. A Swiss journalist who visited Manantali in 1988 described the project as a "luxury car without a motor". In 1993 Carl–Dieter Spranger, then Germany's minister for development assistance, called Manantali an "act of economic and environmental nonsense". When the conflict subsided in 1991 the OMVS sought a a new loan package for the hydropower plant, which was finally put together in 1997. The dam began to produce electricity for Senegal, Mali and Mauritania in 2001.
Today the dam managed by the tripartite Manantali Energy Management Company, the Société de gestion de l’énergie de Manantali (SOGEM) created in 1997. SOGEM in turn has signed a 15-year concession contract with the private company EEM, a subsidiary of the South African national power company ESKOM, to operate the plant. OMVS is represented on the board of SOGEM. Citing "contractual difficulties in executing the contract", Eskom has entered into an agreement with SOGEM to terminate it as of 1 October, 2011, according to the company's 2011 financial report.
The dam was jointly financed by 16 donors, including German (14%) and French (13%) development cooperation, the African Development Bank
, the World Bank
, the European Investment Bank
, Canada, Saudi Arabia, Kuwait and the United Nations Development Program. The three benefiting African countries also contributed to the financing. 64% of the foreign financing was through soft loans and 36% through grants. The European Community, the Islamic Development Bank
, the West African Development Bank
, and the Nordic Development Fund
also contributed to the financing. The government of Norway had declined to finance the dam because of concerns about its health impact.
Electricity generation. A 2008 evaluation of the dam conducted by three financiers (EIB, German KfW and French AFD) concluded that the main benefit of the dam is the generation of hydropower, where the production of 740 GWh per year exceeded expectations of 540 GWh. About 55% of the electricity is used in Mali, 30% in Senegal and 15% in Mauritania. In 2006 in Mali more than 90% of all electricity generated came from Manantali, in Mauritania 34% and in Senegal 13%. The dam has not resolved the power problem of the three counries, where power outages regularly occur and the few existing industries have to produce their own power. As for the economic efficiency of the project, the European evaluation calculated an economic rate of return of the hydropower component of 8%. A World Bank evaluation even calculated an economic rate of return of 12 to 24%. The plant load factor of the planned hydropwer plant - the expected electricity production divided by the potential production if the power plant was utilized permanently at full capacity - is 42% compared to 45-60% for other hdyropower plants. However, these economic benefits did not translate into financial benefits for two reasons: First, bulk electricity tariffs were set at only about half of production costs (4.7 Euro Cents/kWh compared to 8.8 Cents). Second, the national power utilities of the three countries that buy the electricity in bulk regularly pay only about half their bills. The entity in charge of operating the hydropower plant, SOGEM, thus accumulates deficits. A Hydrology Risk Fund was to be gradually replenished in order to pay for operating costs of the plant in the case of a revenue shortfall due to drought. The Fund received only limited contributions, since the payments earmarked for the fund were instead used for rural electrification in areas near the power transmission lines in response to pressure from local communities.
The agricultural benefits achieved through the dam were "below reasonable expectations". The dam irrigates an additional 78,100 hectares (781 square kilometers) of land in Senegal (54,700 hectares), Mauritania (20,400 ha) and Mali (3,000 ha), which actually exceeds expectations. However, yields remain low and only a single crop is harvested per year, partly because in all three countries producer prices for rice are set by the governments below the world market price, thus providing little incentive for farmers to increase production to its full potential. The stated project goal to increase food self-sufficiency was not achieved: The share of rice self-sufficiency decreased in Senegal from 23% in 1980 to 20% in 2006 and rice production stagnated since 1990. The share of cereal self-sufficiency in Mauritania decreased from 80% to 30%.
The objective of increasing the navigablity of the Senegal River between Saint-Louis, Senegal
and Ambidédi
, Mali had already been abandoned in 1980 prior to its construction because it proved unfeasible.
Bafing River
The Bafing River runs through Guinea and Mali and is about long. It joins with the Bakoy River in Bafoulabé to form the Sénégal River, in the Kayes Region of western Mali. It is also called the Black River while the Bakoy is called the White River...
river in the Senegal River
Sénégal River
The Sénégal River is a long river in West Africa that forms the border between Senegal and Mauritania.The Sénégal's headwaters are the Semefé and Bafing rivers which both originate in Guinea; they form a small part of the Guinean-Malian border before coming together at Bafoulabé in Mali...
basin, 90 km to the south-east of Bafoulabé
Bafoulabé
Bafoulabé is a town and commune in south-western Mali. It is located in the Region of Kayes. Bafoulabé is the capital of the Cercle of Bafoulabé, which in 1887 was the first Cercle to be created in Mali.-Local administration:...
, in Mali
Mali
Mali , officially the Republic of Mali , is a landlocked country in Western Africa. Mali borders Algeria on the north, Niger on the east, Burkina Faso and the Côte d'Ivoire on the south, Guinea on the south-west, and Senegal and Mauritania on the west. Its size is just over 1,240,000 km² with...
's Kayes Region
Kayes Region
Kayes Region is one of eight first level national subdivisions, called Regions in Mali. It is the first administrative area of Mali and covers an area of 120,760 km²...
.
History
Early planning for the dam began in 1972 when the Organization for the Development of the Senegal River (Organisation pour la mise en valeur du fleuve SénégalOrganisation pour la mise en valeur du fleuve Sénégal
The Organisation pour la mise en valeur du fleuve Sénégal is an organisation of Guinea, Mali, Mauritania and Senegal to manage the Senegal River and its drainage basin....
, or OMVS) was set up by Mali, Mauritania and Senegal to develop the agricultural and hydropower potential of the basin. The World Bank declined to fund the dam in 1979, considering it an unreasonable investment. However, financing was secured from mainly European and construction on the dam began in 1982. It was completed in 1988, but without the hydropower plant. In 1989 the Mauritania–Senegal Border War stopped all work on the project. A Swiss journalist who visited Manantali in 1988 described the project as a "luxury car without a motor". In 1993 Carl–Dieter Spranger, then Germany's minister for development assistance, called Manantali an "act of economic and environmental nonsense". When the conflict subsided in 1991 the OMVS sought a a new loan package for the hydropower plant, which was finally put together in 1997. The dam began to produce electricity for Senegal, Mali and Mauritania in 2001.
Today the dam managed by the tripartite Manantali Energy Management Company, the Société de gestion de l’énergie de Manantali (SOGEM) created in 1997. SOGEM in turn has signed a 15-year concession contract with the private company EEM, a subsidiary of the South African national power company ESKOM, to operate the plant. OMVS is represented on the board of SOGEM. Citing "contractual difficulties in executing the contract", Eskom has entered into an agreement with SOGEM to terminate it as of 1 October, 2011, according to the company's 2011 financial report.
Cost and financing
The total cost of the dam, its associated hydropower plant, the deforestation of the future reservoir, studies and "complementary measures" was 1.02bn Euro. The construction cost of the related Diama dam further downstream was an additional 50m Euro.The dam was jointly financed by 16 donors, including German (14%) and French (13%) development cooperation, the African Development Bank
African Development Bank
The African Development Bank Group is a development bank established in 1964 with the intention of promoting economic and social development in Africa...
, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, the European Investment Bank
European Investment Bank
The European Investment Bank is the European Union's long-term lending institution established in 1958 under the Treaty of Rome. A policy-driven bank, the EIB supports the EU’s priority objectives, especially European integration and the development of economically weak regions...
, Canada, Saudi Arabia, Kuwait and the United Nations Development Program. The three benefiting African countries also contributed to the financing. 64% of the foreign financing was through soft loans and 36% through grants. The European Community, the Islamic Development Bank
Islamic Development Bank
The Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organisation of the Islamic Conference , convened 23 Dhu'l Qa'dah 1393 AH.The bank officially began its activities on...
, the West African Development Bank
West African Development Bank
The West African Development Bank - WADB is an international Multilateral Development Bank established in 1973 to serve the nations of Francophone and Lusophone West Africa...
, and the Nordic Development Fund
Nordic Development Fund
The Nordic Development Fund is the joint multilateral development finance institution of Denmark, Finland, Iceland, Norway and Sweden. It was established in 1989 and adheres to the development assistance policies of the Nordic countries and has financed 190 development assistance credits valued at...
also contributed to the financing. The government of Norway had declined to finance the dam because of concerns about its health impact.
Benefits
The expected benefits included electricity generation, increased agricultural production through irrigation and improved river navigability.Electricity generation. A 2008 evaluation of the dam conducted by three financiers (EIB, German KfW and French AFD) concluded that the main benefit of the dam is the generation of hydropower, where the production of 740 GWh per year exceeded expectations of 540 GWh. About 55% of the electricity is used in Mali, 30% in Senegal and 15% in Mauritania. In 2006 in Mali more than 90% of all electricity generated came from Manantali, in Mauritania 34% and in Senegal 13%. The dam has not resolved the power problem of the three counries, where power outages regularly occur and the few existing industries have to produce their own power. As for the economic efficiency of the project, the European evaluation calculated an economic rate of return of the hydropower component of 8%. A World Bank evaluation even calculated an economic rate of return of 12 to 24%. The plant load factor of the planned hydropwer plant - the expected electricity production divided by the potential production if the power plant was utilized permanently at full capacity - is 42% compared to 45-60% for other hdyropower plants. However, these economic benefits did not translate into financial benefits for two reasons: First, bulk electricity tariffs were set at only about half of production costs (4.7 Euro Cents/kWh compared to 8.8 Cents). Second, the national power utilities of the three countries that buy the electricity in bulk regularly pay only about half their bills. The entity in charge of operating the hydropower plant, SOGEM, thus accumulates deficits. A Hydrology Risk Fund was to be gradually replenished in order to pay for operating costs of the plant in the case of a revenue shortfall due to drought. The Fund received only limited contributions, since the payments earmarked for the fund were instead used for rural electrification in areas near the power transmission lines in response to pressure from local communities.
The agricultural benefits achieved through the dam were "below reasonable expectations". The dam irrigates an additional 78,100 hectares (781 square kilometers) of land in Senegal (54,700 hectares), Mauritania (20,400 ha) and Mali (3,000 ha), which actually exceeds expectations. However, yields remain low and only a single crop is harvested per year, partly because in all three countries producer prices for rice are set by the governments below the world market price, thus providing little incentive for farmers to increase production to its full potential. The stated project goal to increase food self-sufficiency was not achieved: The share of rice self-sufficiency decreased in Senegal from 23% in 1980 to 20% in 2006 and rice production stagnated since 1990. The share of cereal self-sufficiency in Mauritania decreased from 80% to 30%.
The objective of increasing the navigablity of the Senegal River between Saint-Louis, Senegal
Saint-Louis, Senegal
Saint-Louis, or Ndar as it is called in Wolof, is the capital of Senegal's Saint-Louis Region. Located in the northwest of Senegal, near the mouth of the Senegal River, and 320 km north of Senegal's capital city Dakar, it has a population officially estimated at 176,000 in 2005. Saint-Louis...
and Ambidédi
Ambidedi
Ambidedi is a small town and principal settlement of the commune of Kemene Tambo in the Cercle of Kayes in the Kayes Region of south-western Mali....
, Mali had already been abandoned in 1980 prior to its construction because it proved unfeasible.