Bamako, Mali, 14 October 2005 - Industrial Promotion Services (West Africa), IPS (WA), the West African affiliate of the Aga Khan Fund for Economic Development (AKFED), has signed a public-private partnership agreement with the Republic of Mali concerning the Energie du Mali (EDM) company. This initiative builds on of the agreement of cooperation between the Aga Khan Development Network and the Mali government, signed in August of this year, to support economic, social and cultural development in Mali. Among other achievements of the cooperation agreement to date are a not-for-profit microfinance foundation soon to be opened in northern Mali and restoration work on the Grand Mosque in Mopti, due to be completed by the end of next year.
Under the terms of this agreement, the Bouygues group has sold its 39% holding of EDM to the Republic of Mali and IPS (WA). The Republic of Mali is purchasing two thirds of the shares, raising its total holding in EDM to 66%. IPS (WA) is purchasing the remaining third, raising its holding to 34%.
"I am very pleased with the partnership agreement between the Republic of Mali and IPS (WA) and will do my utmost to ensure the success of this new venture in meeting the challenges faced by EDM," commented his Excellency Mr. Hamed Diane Semega, the Minister of Mines, Energy and Water.
"AKFED is pleased to continue to strengthen its partnership with the Republic of Mali in the two vital sectors of the Malian economy, electricity and water," added Mr. Jean-Louis Vinciguerra, director of AKFED. "Through this public-private partnership, we will make every effort, in conjunction with the Mali government, to promote the development of EDM for the benefit of the Malian economy".
EDM was privatised on 20 December 2000 , with the SAUR (a Bouygues group subsidiary)/IPS joint venture as strategic partner. Its revenue in 2004 was FCFA 64 billion. The company employs 1,620 staff.
EDM's mandate is to ensure the supply, quality and safety of electricity and drinking water throughout the area covered by the utility's concession. It currently supplies electricity to 154,000 customers in 35 urban centres and water to 91,700 customers in 16 urban centres. EDM has an interconnected network supplying 13 localities and 20 isolated centres. In 2004, EDM delivered 720,800 MWh of electricity over 3,900 kilometres of transmission lines and 61,900,000 cubic metres of water via 2,660 kilometres of pipework.
In periods of extreme heat, demand on the water and electricity networks is high. EDM's priority over the coming years is to find new energy resources through interconnection of sub-regional electricity grids, to meet growing electricity requirements. EDM has initiated a project to obtain ISO 9001 quality assurance certification, reflecting its commitment to customers. In February 2005, EDM became the first Malian company to obtain ISO 9001 certification for its Bamako region water services. Since 2002, the company has been involved in a sustainable development programme, promoting environmental protection and sport in schools.
AKFED's presence in the energy field in West Africa (Azito Energie in Ivory Coast ), in East Africa (Tsavo Power in Kenya and the planned Bujagali hydroelectric dam in Uganda ) and in Central Asia (Pamir Energy in Tajikistan ), means it is well equipped to share its know-how in this field with EDM.
AKFED, present in West Africa for over forty years, is an economic development agency which invests in projects in specific priority sectors and geographical zones in the region. Its approach is based on a realistic appraisal of the actual circumstances in the area in question and on a commitment to develop human and technological resources and social aid to improve economic and, more broadly, social conditions.
The strengthening of AKFED's stake in Energie du Mali follows a series of programmes drawn up by the AKDN and currently ongoing in the country, relating to health, education, microfinance and cultural and rural development.
For further information, please contact:
Réseau Aga Khan de développement (Mali)
Tel.: +223 222 06 95/222 08 63
Fax: +223 222 34 66
The Aga Khan Development Network (AKDN) is a group of private, non-denominational development agencies working to improve living conditions and opportunities for people of all denominations and origins in specific regions of the developing world, especially in Asia and Africa.
The Aga Khan Fund for Economic Development (AKFED) is the economic development arm of the AKDN. Its companies have been active in Eastern Africa since 1936, expanding into Central and West Africa over the following decades. AKFED is active in the fields of industry and infrastructure, financial services, tourism promotion, media and aviation services in 19 countries across South and Central Asia and sub-Saharan Africa. AKFED operates as a network of affiliates with more than 100 separate project companies employing over 18,000 people and controlling assets in excess of US$1.5 billion. AKFED has been present in various sectors of activity in West Africa (Ivory Coast, Senegal, Mali and Burkina Faso) for over forty years, including packaging, agro-industry, infrastructure and aviation. IPS (WA), its West African affiliate, manages some twenty companies, employing over 6,000 staff. AKFED is present in Mali via Compagnie Aérienne du Mali and - through IPS (WA) - with Embalmali (packaging) and Energie du Mali (power) companies.