In 1997 Gabon awarded the first realconcession in Africa, under a contract that introducedcoverage targets for expanding service to previouslyunconnected rural areas. SEEG, the new concessionaire,offers both water and electricity service, with theelectricity business cross-subsidizing the less developedwater business. Five years on, the concessionaire hasperformed well in established service areas, often exceedingtargets, but has made less progress in more isolated areas.This Note assesses lessons for the design of contracts withincentives for expanding service beyond the immediatecircles of major urban centers-and on the potential role of multi-utilities.