2005 - 2006 - Pinsent Masons Water Yearbook 2012

GUINEA-BISSAU PART 2: COUNTRY ANALYSIS
Guinea-Bissau
In Guinea-Bissau, Suez has provided management support for water services since 1991 in order to
improve the technical and financial performance of EAGB, the public water and electricity utility. This
contract is based on Suez receiving 75% of its income on a fixed fee basis, with the remaining 25%
being performance-linked. The lack of a clear management role and the inability to take action over
identifiable areas of under-performance has meant that this has been a difficult compromise for both
the state and the private sector. The state has continued to fail to make its payments to Suez on
time, while funds earmarked for investments in the network’s infrastructure have not emerged. At the
same time, tariffs have not been revised so as to allow billings to meet operating costs.
Nationally, Guinea-Bissau suffers from poor water availability and catchment degradation where water
sources occur. 32% of the urban population had access to potable water in 1996, compared with
19% in 1991. 24% of the urban population had access to adequate sanitation in 1996. One of the
problems evident in a contract such as the one with Suez is the size of the market in relation to the
costs required to fully reform the cost recovery process. In a contract of this size, it may well be
cheaper for a company such as Suez to let matters rest rather than to address any underlying
problems. In the longer term, countries such as Guinea-Bissau are likely to demonstrate the limits of
private sector involvement.
Access to improved services 1980 2000
Urban water 18% 29%
Rural water 8% 55%
Total water 10% 49%
Urban sanitation 21% 88%
Rural sanitation 13% 34%
Total sanitation 14% 47%
In 2003, EAGB’s staff went on strike over unpaid wages, in some cases with arrears extending to
more than one year. The interim government has announced that it is looking again at PSP solutions
in order to pay staff.
107 Pinsent Masons Water Yearbook 2005 – 2006