Énergie : l’État condamné à verser plus de 218 millions F CFA à un opérateur
While the State retains the right to terminate a contract for reasons of public interest, it is obligated to bear the financial consequences. This is the meaning of the verdict handed down by the civil chamber of the Dakar High Court. According to Les Échos, after a legal battle lasting several years, the Senegalese Company for Equipment and Energy (SS2E) finally prevailed on the financial front. The court did indeed uphold "the legality of the concession withdrawal," but also recognized "the significant damage caused by this breach of contract."
The operator deemed the termination "abusive."
The dispute stems from the state's unilateral withdrawal of the electricity distribution concession, as well as the production and sales licenses granted to SS2E, the same source notes. The operator, which relied on a fifteen-year operating period stipulated by ministerial decree, denounced the decision as "abusive" and filed a lawsuit.
The court, the newspaper points out, adopts a balanced interpretation in its reasoning. It confirms that the administration can terminate a contract "for reasons of public interest," but at the same time reminds us that this prerogative cannot be exercised without "fair financial compensation."
More than 233 million CFA francs in total
Based on a court-ordered expert assessment, the State was ordered to pay the principal sum of 218,125,643 CFA francs for "overall damages suffered," covering both lost profits and lost investments. In addition to this compensation, 15 million CFA francs were awarded to reimburse expert fees, while the State was also ordered to bear all legal costs.
A reprieve for the State Judicial Agent
However, Les Échos points out a significant nuance: the judge specified that there was "no reason to order provisional enforcement." This clarification means that the State retains the option of appealing, a step that would "immediately suspend the disbursement of funds," pending a new ruling from the Court of Appeal.
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