Water and electricity: Multiservice regional companies will take over
Multiservice regional corporations (SRM) will soon come into being. The legislation, recently published in the Official Gazette, aims to create 12 regional corporations, one per region. They will gradually replace the utilities and the National Office for Electricity and Drinking Water. A decree from the Ministry of the Interior will set the deadlines for each region.
This operation is part of the reform of public institutions and also of the energy sector. The distribution of electricity, drinking water, and liquid sanitation will be part of the remit of these new entities. The goal sought is to set up economically viable entities with a view to mobilizing funding, inter alia, for investment purposes.
Adopted by 154 votes in favor, 21 against, and 16 abstentions, Law No. 83.21 on the creation of regional multi-service corporations should, in principle, put an end to the problems currently facing the sector. “Monitoring and evaluation operations have shown that the performance of the water and electricity sector is facing a series of problems within the framework of ongoing management experiences”, underlined the Minister of the Interior, who added that “this state of affairs does not allow current players to support the development of demand for water, sanitation, and electricity services, especially since it prevents a balance in the distribution of these services at the territorial level, particularly in the rural world”.
Endowed with the status of a public limited company, the SRMs will have as shareholders the central Government, public agencies, and state-owned enterprises, including the National Office for Water and Electricity, as well as local authorities. The capital of the Multiservice regional corporations may be open to the private sector, but provided that the central Government’s share is not less than 10%. SRMs are authorized to carry out all industrial, commercial, real estate, and financial operations and activities related to their main purpose. Regional multiservice corporations may also be empowered under the management contract to collect royalties, funds, participations on behalf of a utility or of the national Government or for their own account, as the case may be (Article 2 of the law). These corporations benefit from the right of expropriation for reasons of public interest and from the right of temporary occupation of the private domain, in accordance with the legislation in force. SRMs also benefit from all the rights and advantages granted by the legislative and regulatory texts for the benefit of investors and promoters of industrial projects.
Khadija MASMOUDI
