Echoes from the field

Gabon is exploring the modalities of Public Private Partnership contracts in the Energy and Water sector with the support of ALSF

Libreville, Gabon, 29 May 2023 - - Critical clauses, contract negotiation and monitoring were the focus of a seminar on standard public-private partnership contracts in power generation and water sectors that the African Legal Support Facility (ALSF) organised from 22 to 24 May 2023 on behalf of the Gabonese government.

Discussions at the capacity-building sessions on Public-Private Partnership (PPP) Models for power generation and drinking water included provisions on guarantees for the concession-granting Authority, termination clauses and indemnities, and deadlines, in particular the commissioning date. The seminar was run by ALSF in collaboration with Gide Loyrette Nouel and Axcelcium. Through practical negotiation exercises, participants examined the main legal and financial aspects of Concession Contracts and Power Purchase Agreements. The Seminar took place against a backdrop marked by the Government's determination to optimize the country's rich hydroelectric potential (around 11,000 megawatts), as well as to increase its production capacity using solar energy, as set out in the Strategic Plan for Emerging Gabon: Vision 2025.

Hence, the central place given to Energy and Water in this training course ! Honourable Hugues MBADINGA MADIYA, Minister of Investment Promotion and Public-Private Partnerships, in charge of improving the business environment underlined "As key factors in the evaluation of social well-being, their provision and therefore their contractualization must be governed by a skilful mix of negotiations taking into account the various interests between the public and private sectors, but above all the common interest". Honourable MADIYA officially opened the Seminar alongside his counterpart, Honourable Sévérin MAYOUNOU, Minister of Energy and Hydraulics. For the representative of the African Development Bank's Country Director in Gabon, Mrs. Bernice SAVY, "This Seminar is of particular importance as the Bank explores with the government the opportunities and challenges associated with the public and private sectors collaboration in ensuring a sustainable and efficient supply of energy and water in Gabon.” Mrs. Nelly Nguegan, Coordinator of ALSF Capacity Building Initiatives praised the confidence the Government has placed in ALSF support to the Country in mastering "the instruments required in the design, negotiation, drafting, implementation and monitoring of PPP contracts."

The PPP model contracts presented during this training course are the culmination of ALSF's support to the Gabonese government in structuring PPP contracts, initiated in 2019. This support consisted of the holding of previous workshops, the first one on the legal, technical, and financial fundamentals of PPP projects, the second one, more specific on the structuring and development of PPP projects in the water and energy production sectors.


About the ALSF

Hosted by the African Development Bank since 2008, the ALSF assists African governments in negotiating complex commercial transactions, providing legal and technical assistance, and developing capacity-building tools in the key sectors of infrastructure and public-private partnerships, energy, natural resources, and extractive industries, as well as sovereign finance.


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