2012 – 2013
Audit of the Water Company of Saint-Marc (SESAM)
Yield
Audit
Performance
Context
The Water Company of Saint Marc (SESAM – a subsidiary of a French company with manpower of 40) has been the Public Service Delegation entity for drinking water in the city of Saint Marc since 2009. The contract was subsidized by the International Development Bank.
SESAM manages drinking water distribution (disinfected against cholera through the use of bleach) for 3000 networks with meters and 13 kiosks where the general public may buy water in buckets. The principal issue remains the lack of willingness to pay on the part of the users.
Altereo conducted an audit, as commissioned by the Haitian government, with the objective of preparing a clear and precise Public Service Delegation Contract for Drinking Water Supply within the city of Saint Marc. This was supported by the Haitian Government, SESAM and also by the operator LYSA SAS, the main French shareholder for the company
Project Description
The consultant was specifically asked to identify deficiencies and liabilities, as well as to provide recommendations for contract development.
The mission assignment included:
- Identifying the strength and weakness of the management contract concerning economic, legal and financial aspects
- Identifying gaps and / or breaches in the management contract enforcement, that will be taken into account for it’s possible revision or renegotiation
- Assessing the equilibrium of the delegation for this first leasing period, by giving objective opinions on the implementation by the operator
- Suggesting improvements in the agreement contract or its annexes for each mission or sub-mission
- Suggesting a basis for dispute resolution concerning the contract implementation by the operator, and appropriate remedies bases
