World Bank Conducts Assessment of Utility Reform along Mauritania’s Mining Corridor

Nouakchott, October 14, 2008 -- The results of a new study are in on the impact of a proposed initiative to transfer water and electricity services in the Nouadhibou-Zouerat mining corridor from the national mining company SNIM to another provider.

The study, a Poverty and Social Impact Analysis (PSIA), was aimed at:

• Assessing the distributional impacts of the proposed transfer of utility services on different social groups, with a particular focus on the poor;
• Engaging key stakeholders in a debate about the social and economic gains, costs, and trade-offs of the different transfer options; and
• Analyzing and exploring options for generating stakeholder support for implementing the preferred transfer option.

“It was very important to involve all relevant stakeholders in developing options for transf

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Activities along Mauritania's Mining Corridor

Results of the analysis outlined the most viable policy options for the utility services transfer and identified measures to mitigate the risks for vulnerable groups. Weighing risks against benefits, the overall conclusion was that the positive effects of reform will outweigh its potential risks.

First, the current mining company’s competitiveness will be strengthened and the company will be able to make new investments in its core mining business again. Second, over time the new utility provider will play a significant role in the overall development of the economic corridor, including the reduction of social inequalities in access to essential social services. Third, the municipalities could participate in the new service delivery systems by contributing to the water delivery in the city of Zouerate. Finally, and most importantly, consumers will be able to access water and electricity services that are safe and reliable at prices that most can afford.

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Policy Note on Utility Service Reform in Mauritania's Mining Corridor

Stakeholders have voiced an interest in resuming implementation of the reform once the difficult political situation in the country has eased – Mauritania has experienced two coup d’états in the past 24 months. The two main government entities (the mining company SNIM and the Ministry of Hydraulic and Energy) that will have to initiate and facilitate the reform process are confident that they have gained sufficient public and political support to move ahead.

For more information contact: Renate Kirsch, Senior Social Scientist, Washington, rkirsch@worldbank.org

Salamata BAL, Senior Social Development Specialist, Mauritania, sbal@worldbank.org