Progress report for
SPEED UP SUSTAINABLE ACCESS TO WATER IN RURAL AREAS
Achievement at a glance
ODIAL owns 100% of UDUMA Mali and funded 40% of the initial CAPEX alongside RVO (Dutch government) (60%)UDUMA Mali sells water directly to customers under a delegated management contract
Further CAPEX are covered by a group of foundations to reach a greater coverage untill the project reaches breakeven
ODIAL sells and installs equipments to UDUMA Mali through VERGNET HYDRO on a arms’length basis
The project signed 15-year delegated management contracts with 35 communes in Mali, supported by the ministry and communities’ commitment pacts engaged with 366 villages – app.200 000 people
Phase 1: $5 Million CAPEX to rehabilitate and operate 1,400 handpumps out of UDUMA’s subsidiary in Mali, through a consortium of 5 partners, and channelled into a direct investment of $2 Million (UDUMA) and $3 Million subsidy RVO in 2018
Phase 2: diversifying , introducing solar systems (75) to get a better penetration rate, greater consumption and boost the profitability in 2022
Phase 3: scaling and diversifying. Incorporation of additional Solar stations (through subsidies) and works (independent project) to strengthen revenue streams in 2023
Phase 4: engaged in 2024, rehabilitating large infrastructure (water piped schemes) and introduce prepaid technologies trough subsidies to improve operational efficiency and overall profitability of the subsidiary
Challenges faced in implementation
The payback period for the co-investment in Mali was longer than initially anticipated due to ramp-up effect but the company demonstrated resilience by securing €3.48m in grants to cover CAPEX. In addition, ODIAL achieved decent sales and margins through its supply & installation services that further accelerate the consolidated pay-back.Next Steps
UDUMA is now in the position to duplicate the subsidy-based scheme and diversify its footprint to Ivory Coast and Burkina Faso, to reach critical size and diversify revenues streams.ODIAL, through its UDUMA initiative, stands out in its ability to attract turnkey projects, from the supply & installation of water networks to the provision of durable water services via an operating model.
The ability to attract donors at scale leverage additional opportunities for ODIAL in terms of the supply and installation of infrastructure while generating long term and recurring revenues.
Lastly, important to note that this innovative approach to reach the poorest populations is now widely recognized as ODIAL received multiple awards such as P4G, Bearingpoint, Solar Impluse.
Beneficiaries
The beneficiaries are the rural population who can enjoy 24/7 access to potable water.