A new Senegal energy source: openness

A unique solution to Senegal's energy dilemma was recommended recently by Alex Segura, the IMF's resident representative. The solution is two part: cash and transparency. And the two go together. Senegal's utilities are stuck in a spot market rut: they buy fuel oil one tanker at a time, in cash, frequently borrowed cash, from who-knows-where... Instead Segura urges transparent bidding. International finance experts have always pushed open bidding in African economies, with little progress. In the energy sector it makes sense, but is no easier than other sectors such as infrastructure. Oil powers Senegal's feeble generation capacity. That's imported, refined oil--especially subject to the world extaction, refining and transportation market, and its very evident vagaries, especially recently... It will take some real arm twisting for Senegal's utility sector (hardly deserving the name) to institute the discipline, and smarts, necessary for a successful open bidding program. But the payoffs would seem great: the consequent tools of hedge and option trading of supplies could create a buffer in hard economic times as these... Segura's recent comments were larded with praise for the progress being made by Senegal's establishment in the area of budget reform and accountability, setting the foundation for sophistication in its energy policies and practices...