Transportation spending in Senegal has increased much in recent years with road projects like the Cornice and toll roads around Dakar. But keeping up roads across Senegal is underfunded by 50 percent, according to a recent meeting of Senegal business school and government leaders.
Transportation is a key economic development infrastructure. Administrative chief of the Directorate of Land Transport, Papa Souleymane Faye, one of the organizers of the conference, fears new road construction comes at the cost of overall system maintenance. Aging roads and bottlenecks are a growing feature.
One wonders whether Senegal has a capital maintenance program for its roads, adopted by most municipalities in the United States. Many American cities and counties have sophisticated computerized road maintenance programs. But regardless of the sophistication, it ultimately takes money to get it done...
Showing posts with label infrastructure. Show all posts
Showing posts with label infrastructure. Show all posts
Friday, May 29, 2009
Friday, May 1, 2009
Karim Wade takes critical infrastructure ministry
Karim Wade has been appointed the "go to" guy for infrastructure in the Wade government. With the appointment by President Wade, he and his son appear to have shaken off the defeats of last month's local elections.
The junior Wade takes the title of Minister for Transportation and Infrastructure. The appointment is a natural fit for the front man of Senegal's "Concrete Generation" movement. The eager-beaver apparatchiks of the Generation de concrete have pushed modern world infrastructure in Senegal.
The newly minted minister's top priority is sure to be the flightless Air Senegal, its crumbled partnership with Royal Air Morac threatening to ground the national airline permanently, even as the new Dakar airport gets going.
Karim's new job is arguably the most significant in Senegal government. Karim Wade's success or failure will impact on Senegal's quest to be the capital of West Africa.
The junior Wade takes the title of Minister for Transportation and Infrastructure. The appointment is a natural fit for the front man of Senegal's "Concrete Generation" movement. The eager-beaver apparatchiks of the Generation de concrete have pushed modern world infrastructure in Senegal.
The newly minted minister's top priority is sure to be the flightless Air Senegal, its crumbled partnership with Royal Air Morac threatening to ground the national airline permanently, even as the new Dakar airport gets going.
Karim's new job is arguably the most significant in Senegal government. Karim Wade's success or failure will impact on Senegal's quest to be the capital of West Africa.
Friday, April 10, 2009
IMF: backpayments being squared, but tough times ahead
The International Monetary Fund (IMF) concluded recent reviews of Senegal's finances with (for Senegal) high marks for catching up with payments to private contractors. But the April 2 report stressed tough times ahead as the world economy comes to bear.
“Senegal is beginning to experience the effects of the global economic crisis. Main channels of transmission are declining remittances, commodity prices, external demand, and foreign direct investment," according to a statement by Johannes Mueller, IMF Mission Chief for Senegal. He notes positive signs on the horizon: "Declining fuel and food prices are projected to lower inflation to about 1 percent in 2009 and limit Senegal’s import bill, thereby helping contain the external current account deficit."
Despite budget and accounting reforms, falling tax revenues will require deficit spending to continue infrastructure improvments and private contracting, according to the IMF report.
No mention is made of the recent local elections and whether they would chill President Abdoulaye Wade's promotion of intrastructure and private projects. Recently the president reportedly stated his pleas to God that he be allowed to complete infrastucture such as the coastal highway...
“Senegal is beginning to experience the effects of the global economic crisis. Main channels of transmission are declining remittances, commodity prices, external demand, and foreign direct investment," according to a statement by Johannes Mueller, IMF Mission Chief for Senegal. He notes positive signs on the horizon: "Declining fuel and food prices are projected to lower inflation to about 1 percent in 2009 and limit Senegal’s import bill, thereby helping contain the external current account deficit."
Despite budget and accounting reforms, falling tax revenues will require deficit spending to continue infrastructure improvments and private contracting, according to the IMF report.
No mention is made of the recent local elections and whether they would chill President Abdoulaye Wade's promotion of intrastructure and private projects. Recently the president reportedly stated his pleas to God that he be allowed to complete infrastucture such as the coastal highway...
Thursday, March 12, 2009
Tourism prospects dim near term.
Senegal's tourist industry is suffering even as West Africa has worked so hard to build its visitor industry, according to a pessimistic BBC World News report.
According to BBC, bad press in French newspapers over a reported increase in child prostitution at the country's most popular beach resort, the Petit Cote, has not helped but the real hammer blow has been the global recession.
Luxury holidays are one of the first things cut when money is tight and, though the decline this year has been gentle, the figures for next year look dire.
Salif Badiane is the executive director of Africa Connection Tours says: "At this time of the year we should have had orders for 30 to 35 percent of our turnover. Now we are under 5 percent of our turnover and that's why we are so concerned."
Looking at the positive, however, we would note that the hard work of building service infrastructure--everything from good roads to reliable internet-- and buffing up the outstanding natural attractions of Senegal will create long-term opportunities, as the economy revives and news scandals fade...
According to BBC, bad press in French newspapers over a reported increase in child prostitution at the country's most popular beach resort, the Petit Cote, has not helped but the real hammer blow has been the global recession.
Luxury holidays are one of the first things cut when money is tight and, though the decline this year has been gentle, the figures for next year look dire.
Salif Badiane is the executive director of Africa Connection Tours says: "At this time of the year we should have had orders for 30 to 35 percent of our turnover. Now we are under 5 percent of our turnover and that's why we are so concerned."
Looking at the positive, however, we would note that the hard work of building service infrastructure--everything from good roads to reliable internet-- and buffing up the outstanding natural attractions of Senegal will create long-term opportunities, as the economy revives and news scandals fade...
Monday, December 15, 2008
Public concern raised regarding "pots of wine" (bribes) in Senegal
An article in today's SudQuotidien expressed public concern over Senegal's drop on the 2008 "corruption index" produced by Transparency International. Although Senegal is not among the most corrupt on the index, its position fell considerably on the 2008 index...
Construction companies and public works of major exporting countries in Senegal "are identified as most likely to pay bribes to the authorities of host countries," according to the 2008 corruption index. One way to understand the increase in "pots-de-vin" (bribes) is the source of bribes. Transparency International also indexed the countries with the companies most likely to offer bribes. The worst, in order, were Russia, China, Mexico and India.
Senegal does significant business with both China and India. China is engaged in major infrastructure projects, especially around Touba. As we have noted before, India's trade with Senegal has skyrocked in the last five years to lead all others.
The solution Transparency International recommends is, naturally, transparency. Major bidding processes and results should be made public. It cited recent mining deals as an example.
The SudQuotidien article calls increasing corruption a "trap." Rightly so. The well known corrolary to the corruption index is the poverty index--the more corruption, the less likely that a country will develop economically.
Construction companies and public works of major exporting countries in Senegal "are identified as most likely to pay bribes to the authorities of host countries," according to the 2008 corruption index. One way to understand the increase in "pots-de-vin" (bribes) is the source of bribes. Transparency International also indexed the countries with the companies most likely to offer bribes. The worst, in order, were Russia, China, Mexico and India.
Senegal does significant business with both China and India. China is engaged in major infrastructure projects, especially around Touba. As we have noted before, India's trade with Senegal has skyrocked in the last five years to lead all others.
The solution Transparency International recommends is, naturally, transparency. Major bidding processes and results should be made public. It cited recent mining deals as an example.
The SudQuotidien article calls increasing corruption a "trap." Rightly so. The well known corrolary to the corruption index is the poverty index--the more corruption, the less likely that a country will develop economically.
Monday, December 8, 2008
The Khalife guarantees that Touba work continues
The massive intrastructure and public improvements underway in Touba continue, according to the Khalife of the Mourides, by way of a news report. He assures that the water system infrastructure and other projects were never stalled.
The Khalife, Serigne Mouhamadou Lamine Bara Mbacké, took efforts to emphasize the cooperation of the Holy City with the President of Senegal, Abdoulaye Wade:
"The water project has started. Again, we are in step with the president because he had given the sum of seven billion CFA francs. Then he comes back three and a half billion for drilling, pipes, fountains throughout the city."
Addressing reports that the work had been stopped for lack of funding, the Khalife was reported to state: "The work has never been suspended. Those who say they do not know anything."
Since President Wade showed up with the payments in his recent visit to Touba, relations with the Holy City appear to have warmed up considerably. This at a time when the president is facing political opposition.
The Khalife, Serigne Mouhamadou Lamine Bara Mbacké, took efforts to emphasize the cooperation of the Holy City with the President of Senegal, Abdoulaye Wade:
"The water project has started. Again, we are in step with the president because he had given the sum of seven billion CFA francs. Then he comes back three and a half billion for drilling, pipes, fountains throughout the city."
Addressing reports that the work had been stopped for lack of funding, the Khalife was reported to state: "The work has never been suspended. Those who say they do not know anything."
Since President Wade showed up with the payments in his recent visit to Touba, relations with the Holy City appear to have warmed up considerably. This at a time when the president is facing political opposition.
Saturday, November 15, 2008
IMF criticises Dakar for its "slow pay" history on infrastructure work
Previous posts have highlighted the Dakar central govern-ment's "slow pay" history on the Touba infrastructure projects. In the euphemistic terminology of the IMF, a statement following last September's report indicates it is aware of the problem:
"The mission evaluated the serious budgetary slippages that were uncovered in early August 2008. They comprise a large stock of unpaid bills to the private sector within the normal budgetary framework that have accumulated over the last few years, as well as past extrabudgetary spending, which, taken together, were inconsistent with the availability of financing and Senegal's macroeconomic circumstances. While a full assessment of the stock of unpaid bills is ongoing, their extent and lack of consis-tency with the budgetary framework warrant strong actions."
More recent posts here note that President Wade's visit to Touba this week was accompanied by some major payment installments on the Chinese infrastructure work there. One wonders however what result will come of the IMF's "full assessment" of the unpaid bills.
"The mission evaluated the serious budgetary slippages that were uncovered in early August 2008. They comprise a large stock of unpaid bills to the private sector within the normal budgetary framework that have accumulated over the last few years, as well as past extrabudgetary spending, which, taken together, were inconsistent with the availability of financing and Senegal's macroeconomic circumstances. While a full assessment of the stock of unpaid bills is ongoing, their extent and lack of consis-tency with the budgetary framework warrant strong actions."
More recent posts here note that President Wade's visit to Touba this week was accompanied by some major payment installments on the Chinese infrastructure work there. One wonders however what result will come of the IMF's "full assessment" of the unpaid bills.
Tuesday, November 11, 2008
Government money appears in Touba in advance of President Wade's visit
President Abdoulaye's visit tomorrow to the Mourides' holy city of Touba has been greased by finally funding Touba infrastructure projects. The President needs to spread the goodwill, according to today's article in L'Observateur. The sacking of Macky Sall, leader of the Senegalese parliament is apparently fomenting ill feeling toward the president and the Mourides are backing off from their support for the President... Those sore feelings may be assauged somewhat by the reported payment this month to Chinese contractors working in Touba of 3.6 billion CFA francs. According to L'Observateur sources, 2 billion CFA francs were received by Hénan China and 1.6 billion by another company. Work on Touba infrastructure has been restarted, although Chinese and local employment on the projects is still far below the scheduled need... L'Observateur sources with the Khalife say they'll push for more funding for the projects from the President's central government. As we noted here earlier, Touba sent billions of francs (much of it raised abroad) to the central government, where it disappeared for quite awhile. The Khalife took up the matter in a visit to Dakar earlier this year. Only 30 percent of the contract Touba infrastructure has been completed.
Tuesday, October 21, 2008
Report: Chinese will stay to work in Touba
"L'observateur" is reporting today that the Mourides leadership in Touba has smoothed over relations with the Chinese firm Henan, after the Chinese were reported to have stopped work for nonpayment. The multi-million dollar road and infrastructure work to be done by the Chinese in and around Touba will continue... El Hadji Ndiaye, the "right arm" of the Khalif General of the Mourides, is quoted as saying that the Chinese will continue the work although behind in payments to the tune of 9 billion CFA franc ($20.3 million)... The "L'observateur" report also indicates that 60 of the 80 Chinese who were working on the Touba projects are no longer there... About half the 115 kilometers of roadwork committed to the Chinese has been done, according to the report. Meanwhile, the balance of the five-year project, at about 20 billion CFA franc per year, will continue, insists the Khalif. The work includes sanitation and other infrastructure, besides the road work.
Sunday, October 5, 2008
Chinese leaving Touba?
Chinese contractors in Touba may be poised to exit. According to news reports today Henan China is due 12 billion CFA francs in receipts, wages are not being paid and Touba workers--about 250--are set to strike, and even to ransack the Chinese offices.
As noted here before, millions of dollars sent to the central government in Dakar from Touba went missing over the last year. This apparently in some significant part precipitated the Khalif of the Mourides to visit President Wade a couple months back.
The troubles of the Chinese may be elicting delight in some quarters, and moves to assume their work. But the situation does not reflect well on the ability of Touba and Senegal to utilize the capital and technical assistance of other countries. The political problems, murky finances and labor turmoil could thwart Touba's need to obtain modern infrastructure. Still, some are doubtless aware of the irony that the Chinese may be reaping what they sowed.
As noted here before, millions of dollars sent to the central government in Dakar from Touba went missing over the last year. This apparently in some significant part precipitated the Khalif of the Mourides to visit President Wade a couple months back.
The troubles of the Chinese may be elicting delight in some quarters, and moves to assume their work. But the situation does not reflect well on the ability of Touba and Senegal to utilize the capital and technical assistance of other countries. The political problems, murky finances and labor turmoil could thwart Touba's need to obtain modern infrastructure. Still, some are doubtless aware of the irony that the Chinese may be reaping what they sowed.
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