Country Report Gabon January 2011

Economic policy: SEEG may soon face competition

The government's grand ambitions for the domestic power sector in the long term will do little to assuage popular anger about chronic supply shortfalls that continue to affect the country, however. The government and the French-owned national provider of water and electricity, Société d'énergie et d'eau du Gabon (SEEG), remain at loggerheads over the frequent power cuts and water shortages, with each party accusing the other of failing to honour its respective investment commitments.

An audit of SEEG was due to be published in November 2010, but has been delayed indefinitely. When it is concluded, the audit may serve as the basis for the renegotiation of the company's contract, which is currently due to expire in 2017. If the terms of SEEG's concession are revised, this could result in new players entering the utility sector before 2017. Given the troubled history of relations with the Gabonese state, SEEG currently appears unlikely to win new contracts to operate either the dam at Mitzic or other planned hydroelectric dams at Poubara (the site of two existing dams, in the south-west of the country) and Fougamou (5 km downstream of Mitzic).

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