financial equilibrium model in Senegal

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There has been a long history of successful urban water delivery in Dakar and surrounding areas, based on an affermage contract that dates back to 1996 (and which has since been extended twice).  This is actually a complex web of contracts all underpinned by a financial model that has allowed the urban sector to determine what constitutes ‘financial equilibrium’ and to work towards first achieving that and over time maintaining it. The model has three primary inputs – the base tariff level, the predicted demand for water, and the cost base of the utility.  The model then predicts the impact on the balance sheet of the utility and the appropriate tariff levels (across a range of categories) required to achieve ‘financial equilibrium’.