VZCZCXRO8073
RR RUEHMA RUEHPA
DE RUEHDK #1133/01 2461649
ZNR UUUUU ZZH
R 031649Z SEP 09
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC 3021
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHLMC/MCC WASHDC

UNCLAS SECTION 01 OF 02 DAKAR 001133 
 
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DEPT FOR AF/W, AF/RSA, DRL AND INR/AA 
PARIS FOR AFRICA WATCHER 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINS PINR KDEM ECON ENRG SG
SUBJECT: Worsening Power Cuts Leads to Rioting in Dakar 
 
DAKAR 00001133  001.2 OF 002 
 
 
¶1. (SBU) Dakar and most of Senegal's major cities have been gripped 
by chronic electricity cuts.  At the heart of the issue is SENELEC's 
(the state electricity parastatal) inability to find adequate 
financing to buy fuel to run their power stations.  Energy Minister 
Samuel Sarr has handed in his resignation to President Abdoulaye 
Wade against the backdrop of two days of serious rioting in Dakar's 
crowded suburbs that are already suffering from severe flood damage. 
 However, sources within the Energy Ministry say that Senelec has 
managed to secure CFA 26 billion (USD 56.5 million) in short-term 
financing that will allow the company to buy the fuel it needs.  The 
same sources told Emboffs that Senelec is down to 8,900 Metric Tons 
of fuel.  End Summary. 
 
¶2. (SBU) Electricity cuts have reached chronic proportions as long 
and unscheduled outages of 12 to 15 hours and more are becoming 
common in most areas of Dakar.  Secondary cities are experiencing 
similar outages.  Businesses and households are complaining ever 
more loudly as the cuts continue unabated.  Small businesses such as 
tailor shops and carpentries are especially affected and unions 
representing their interests report a 40 percent drop in production. 
 Generators and candles have become two of the most sought after 
commodities around, and businesses that used to be able to endure 
short cuts must now either invest in their own power sources or 
close. 
 
¶3. (SBU) Senelec consumes 1500 Mt of heavy fuel per day for a total 
monthly cost of USD 36 million.  Its equipment is obsolete, some 
dating from the early sixties, inefficient, and costly to run. 
Service is perennially poor and transmission and distribution 
facilities are in deplorable condition due to wear and tear.  To 
make matters worse, one of gas turbines of the 50+ Mw Cap De Biche 
power plant is currently sitting idle in the workshop of 
Connecticut-based Greenwich Turbine Inc. (GTI), which originally 
built the plant in 1995.  The turbine has been there for over year 
because Senelec has been unable to make a third and final payment 
for the repairs. 
 
SENELEC'S FINANCES IN DIRE STRAIGHTS 
---------------------------------- 
 
¶4. (SBU) In a meeting with Cheikhou Cisse, Senelec's Director of 
Communication, he argued that that the company is facing major 
financial difficulties because of non-payment of outstanding arrears 
by delinquent customers.  Cisse underlined that Senelec is owed as 
much CFA 39 billion (Approx. USD 78 million).  This debt includes 
CFA 17 billion (USD 34 million) from three private companies, CFA 14 
billion (USD 28 million) from local municipalities (cities), and CFA 
7 billion from clients who have had their power cut, "We can't 
obtain a loan from commercial banks, and our suppliers are reluctant 
to give fuel at credit," said Cisse.  Besides collecting its debts 
from its clients, Senelec's action plan calls for combating fraud. 
Cisse noted that the company is losing close to CFA 20 billion (USD 
40 million) a year as a result of people illegally siphoning off 
power from the grid. 
 
REACTIONS 
--------- 
 
¶5. (SBU) After simmering for months, the people of Dakar finally hit 
the streets on September 1 just after breaking their fast.  Hundreds 
of youths from the Dakar suburbs Niary Tally and HLM demonstrated 
against the cuts by invading the main boulevard in Niarry Tally and 
HLM shouting, "electric cuts must stop, no more cuts, enough is 
enough."  The demonstrations were characterized by people burning 
tires, blocking roads, and attacking city buses.  The police, who 
arrived on the scene long after the riots started, tried to disperse 
the group with tear gas.  The riots continued for a second night on 
September 2, but this time they were more widespread to include the 
suburbs of Pikine.  Once again the police responded with tear gas 
and batons.  President Wade is expected to return from his vacation 
soon and several sources said that he will make an important 
announcement on the day of Korite (the end of Ramadan) around 
September 19-20.   Meanwhile, consumer associations have remained 
mum on the subject since the majority of their leaders have recently 
received plum appointments as members of the Economic and Social 
Council. 
 
Comment 
------- 
 
¶6. (SBU) President Wade has yet to accept Minister Sarr's 
resignation and even he did it would not change the fact that there 
is just not enough electricity production or capacity in the country 
to meet demand.  Some of this has to do with the way that Senelec is 
being mismanaged but the simple fact is that building new power 
stations takes time and a lot of money, both of which Senegal does 
not have.  Due to poor planning Senelec will be forced to buy fuel 
off the spot market, thus paying regular rates further straining an 
 
DAKAR 00001133  002.2 OF 002 
 
 
already burdened budget.  End Comment. 
 
Bernicat