DAKAR, July 5 (Reuters) – Senegal will cancel a 32-year, $800 million water infrastructure deal with Saudi Arabia’s ACWA Power due to its high costs, according to the country’s Minister of Water and Sanitation.

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The contract, signed in March during the final days of former President Macky Sall’s tenure, aimed to construct and operate a desalination plant in Dakar. This plant, set to be the largest in Sub-Saharan Africa, was intended to produce 400,000 cubic meters of water per day to address the country’s water shortages, with water demand projected to rise by up to 60% by 2035, according to the World Bank.

However, Minister Cheikh Tidiane Dieye announced on Thursday that the long-term costs made the project an “expensive and short-termist solution.”

“The price of water will increase over time due to the technology used in production,” Dieye said on a private TV network. “I stated that this project is not going to proceed.”

Dieye also criticized Sall for signing the deal just days before leaving office, stating, “A president who is about to finish his term and commits to a 30-year agreement is unacceptable.”

ACWA Power has not yet responded to requests for comment made outside business hours.