“In accordance to the national legislation, the municipality must receive a part of the tax paid by the electricity company. So Felou Power Plant will generate 3.5 million CFA (around 7,262 US dollars),” Sarr added.

Terrorism’s Role in Influencing Shared Power

The Gouina Hydropower Plant is supposed to increase the amount of money that local authorities will collect. According to the mayor, this can help the municipality to raise money for its plan to reduce negative impacts which the power plant poses on the environment — and for local development with new schools and touristic infrastructures.

Efforts to develop industrialization in countries of the area are facing the challenge of insecurity, as Africa’s Sahel region is plagued by terrorist organizations and organized crime. Last week on a visit to Mauritania, the Malian president announced signature of a military agreement, dismissing misunderstandings between the two countries over security issues.

The Malian president explained how important this bilateral cooperation is, as Al-Qaeda linked organizations that occupied two-thirds of Mali in 2012 are still moving between porous frontiers.  Meanwhile, President Keita said economical and security efforts need to be sustained by good governance in accordance with the country’s international commitments.

While financial partners urge Mali to cut fossil fuel subsidies, cooperation with the neighboring countries is supposed to supply low cost energy sources.

“Negotiations are in progress with Mauritania on how to compensate a part of subsidies cut with electricity from that country,” Traore said. “Another part must also come from Ivory Coast which already signed an agreement with Malian authorities.”