Title: Benin - Modele 4 - modele de contrat fermier - affermage contract - entre Commune and Association des Usagers de l'Adduction d'Eau

Languages: French

Type: Document

Region: Sub-Saharan Africa

Country: Benin

Sectors: Water and Sanitation

Keywords: Contractual Provisions, Affermage


Benin - Modele 4 - modele de contrat fermier - affermage contract bytes

Document Summary:

This is a well drafted and simple affermage contract that sets out simple service obligations between the Commnunity and the Water Users Association (AUE).

Document Details:

 It is envisaged by the ministry that it would be used alongside an operation contract that the AUE would enter into with a private service provider to delegate functions to the provider rather than the AUE carrying out all of these functions itself. tract is by the community and the tariff is revised with the approval of the Community Council.  It is very similar to model 1 (affermage between commune and the provider).  There are very few service requirements set in the contract but there is a requirement to meet the "normes techniques" (technical norms).  It might be appropriate in replicating this arrangement to have some of those norms specified in a schedule to the contract.  There is no need to have any specific obligations in this contract regarding increases in connections as the provider takes the net revenues and so is incentivized naturally to increase connections.  The AUE is responsible for repair and maintenance but not major renewal and replacement and extension (which will be funded out of the rehabilitation fund that comes out of the licence fee).  The AUE implements/ oversees any major renewal or extension, as per the annual capital investment plan.  While this contract is developed in a civil law context using the affermage model, it could be easily adapted to a common law context where it was possible to assume full cost recovery and where there is a water user association with sufficient capacity to take on this role.


The Community and the Water User Association (AUE)




3 years, renewable for a period of 3 years (article 3.2)

Service being provided

Operation, management and maintenance of the Village Water Supply (AEV) (article 1) in accordance with technical norms (article 5). 

Investment obligations

There are minimal investment obligations regarding operations and maintenance of the facilities.  The facilities are existing and there is no major renewal or extension unless agreed and funded from the renewal fund.  The AUE is responsible for replacement and repair of damaged parts (article 5) 

Funding source

Revenue from tariffs (complete cost recovery) (article 13) 

Maintenance and rehabilitation requirements

The AUE is to maintain the works and equipment in good working condition (article 5)

Service levels specified

Articles 5 and 8 (in particular, service of [  ] hours per day, 7 days a week)

Performance targets


New connections

Article 9 and article 11.  The user is to pay the cost of the connection but the cost of the meter is to be covered by the AUE.  New connections will be granted by AUE, after discussion with the Service Technique Communal.   

Bonus/penalty system

In case of interruption of water supply without justification from the superior service 24 hours in advance, the community has the right to penalize the AUE of an amount up to 50% of the estimated revenue of water services for the period of interruption (article 18) 

Tariff setting - who performs

The tariffs are specified in the contract (article 11) as well as the charge for a new connection.  Tariffs can be reviewed annually.  The AUE or the community may also request an increase or decrease respectively. The amount by which the license fee can also be revised annually in agreement with the Technical Service of the Community to take into account renewals etc. The change of tariff should be approved by a decision of the Community Council (article 12) 

Tariff collection

The AUE collects the revenue and then transfers each month the license fee (which is fixed in the contract) for rehabilitation, extension and auditing costs, as well as fee for community budget, to the designated bank account of the community (article 13)

Payment - does AUE keep revenues/get paid fee

The AUE keeps revenues (other than licence fee and fee for community budget) (article 13) 

Is any sum put aside for rehabilitation?

Yes, a license fee for the rehabilitation, extension and auditing is established and is paid by the provider every month. (article 13)

Accounts and reporting

The AUE is to have accounts drawn up by accountants approved by the community.(article 5).  It is to make monthly reports and annual accounts to the community

Proposals for capital expenditure and renewal

The AUE is to propose to the community a program of investments each year, to be financed from the rehabilitation fund (article 5)

Asset ownership

The assets and any new assets are held by the community (article 7)

Regulator/monitoring body

The community plays the role of monitor and supervisor (article 14)

Right to cut off supply

AUE has a right to suspend the service for non-payment (article 9)

Dispute resolution

Reconciliation; litigation (article 21)

Customer complaints mechanism

There is no provision specified - but the agreement is with the community and so it is likely that complaints would be addressed to the community


Updated: October 25, 2021