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Seychelles: Increase in water and electricity rates

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Seychelles: Increase in water and electricity rates

Increase to Finance PUC’s Infrastructure

The Public Utilities Corporation (PUC) has announced an increase in water, electricity, and sanitation tariffs starting from January 2024.

Water and sewage rates will rise by 9.2 %, while electricity rates will gradually reach an 8.4 % increase by the year’s end, beginning with an overall 60-cent increase on January 15th. This increase comprises 49 cents due to fuel price fluctuations and 11 cents reflecting a 2.5 % rise in average electricity rates.

This was announced by the CEO, Joel Valmont, during a press conference yesterday morning at the PUC Electricity House. He explained that the tariff revision will enable the company to continue modernizing its infrastructure on Mahé, Praslin, and La Digue.

Concessional Loan Granted by the Seychelles Government

Mr. Valmont noted that over the past five years (2018-2022), the PUC has heavily invested in improving electricity, water, and sewage systems. This initiative was partly funded by loans, with the remaining portion sourced from PUC’s equity, government subsidies, and private contributions. This initiative significantly enhanced services without raising tariffs for four years.

However, to secure funds for infrastructure development, the PUC obtained concessional loans of 1.6 billion rupees (108 million EUR) from the Seychelles government. These funds supported various projects, including the 33Kv South Mahé project, improvements in water safety at the La Gogue dam, ongoing construction of the sewage network in La Digue, and the rehabilitation of Mahé’s sewage system.

Furthermore, discussions have revolved around enhancing electricity production reliability on Mahé and Praslin islands by initiating projects aimed at increasing production capacity. The Mahé project, funded by a 21.5 million EUR loan from Nouvobanq, commenced at the end of last year.

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