Water Management: The Divorce between Suez and Algeria Definitively Recorded

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The French group Suez is leaving Algeria. The global specialist in water and waste trades has been in charge of the management of the Algiers Water Company (Seaal) since its creation in 2006.

The delegated management contract concluded between the French giant and the Algerian company officially expired on Tuesday, August 31. The announcement was made by Seaal in a press release.

The divorce between Seaal and Suez, which had been in the air for almost a year, is definitively recorded. La Seaal is turning the page on its collaboration with Suez. Now, it is headed by an Algerian official, a first for 15 years.

Until then, the Seaal, which is owned by the Algerienne des Eaux (70%) and the National Sanitation Office (30%), was managed by a manager appointed by the Suez group. In 2005, Seaal and Suez signed a contract for the management of drinking water supply and sanitation in the greater Algiers, for an amount of 120 million euros, or 24 million euros per year.

The contract between the two parties has been renewed three times. The last time was in 2018. This Tuesday, Algerian Ilyes Mihoubi officially succeeded Frenchman Yves Fagherazzi, Seaal said. The handing over of instructions between the two leaders took place on Tuesday. Amine Hamadene has been appointed to the post of deputy director-general, in charge of public water and sanitation services, according to Seaal.

The management of the Suez group was singled out last April by the Minister of Water Resources, Kamel Mihoubi.

“The French partner has failed in its commitments, particularly in the context of its third contract, since there has been no effort in the fight against leaks,” he said.

Suez leaves Algeria and leaves Seaal plunged into an unprecedented crisis, due to the shortages of drinking water affecting the capital and its region. Draconian restrictions on water distribution were imposed on the population this summer.

The capital, which was supplied with drinking water 24 hours a day, is subject to a  water distribution plan, every other day, for a few hours. This water crisis, the most severe in 20 years, was caused by an endemic drought that has hit Algeria for at least three years.

“The decrease in rainfall recorded during the last three years has caused a deficit in the quantity of surface water stored in the dams, causing a loss of production volume of almost half, from 1.3 million m3/day to 750,000 m3/day ”, explained Amine Hamadene.