117th BOAD Board meeting: the Bank approves new loans for projects totaling XOF228.0 billion and mobilizes €275.6 million (XOF180.78 billion) of LoCs and grants to support its action in favor of WAEMU countries and private sector
24 June 2020. The Board of Directors of the West African Development Bank (BOAD) held its 117th meeting ounder the chairmanship of Mr. Christian Adovelande, President of BOAD and Chairman of the Board of Directors. As the previous one, this meeting was held by videoconference due to the COVID-19 related restrictions.
Following approval of the minutes of its 116th meeting held on 25 March 2020, the Board examined the mid-term review of the 2020 financial outlook along with the statement of recovery of BOAD loans as at 31 May 2020. It also reviewed the evaluation report on the 2015-2019 strategic plan implementation process and proposed strategic areas for a new 2021-2025 strategic plan.
The Board approved new operations involving eight medium and long-term loans amounting to XOF118 billion, a short-term loan amounting to XOF10 billion and a WAEMU private sector assistance programme involving to XOF100 billion. This brings BOAD’s total commitments (all operations combined) to XOF6,235.8 billion.
Lending approvals are meant for the partial funding of the following projects:
- Consolidation phase of the irrigation development project in the Bani basin and Sélingue (PDI-BS) in the Republic of Mali. Works consist of: (i) securing water supply to the pumping stations with the construction of an agricultural sill at the Kourouba site on the Sankarani river; (ii) repairing and reinforcing tracks by resurfacing tertiary tracks within the perimeter with laterite; (iii) reinforcing the irrigation network and improving the borrow pits; (iv) protecting the perimeter dykes; and (v) maintaining and managing the irrigated perimeter. Amount of the operation: XOF5 billion.
- The Yakassé-Attobrou-Béttié road planning and asphalting project in Côte d’Ivoire. The project aims to (i) improve road traffic by reducing travel time by nearly 50%; ii) reduce vehicle operating costs by nearly 30% upon commissioning of the road, and iii) promote trade and facilitate the marketing of agricultural commodities between local communities in the project area and other parts of the country. Amount of the operation: XOF20 billion.
- 25 km-long road planning and asphalting project at Diffa in Niger: the project seeks to (i) improve mobility on the roads concerned by reducing travel time by about 70%; (ii) reduce vehicle operating costs by about 50% after the roads are commissioned; and (iii) reduce the number of traffic accidents by more than 60%. Amount of the operation: XOF15 billion.
- Construction of the Natitingou-Tanguiéta-Porga-Benin/Togo border 161-kV interconnection line and related HV/MV substations in the Republic of Benin. The overall objective of the project is to sustainably meet energy requirements and secure electricity supply of major localities in the far north of Benin and Togo. Amount of the operation: XOF15 billion.
- Construction of the electric grids associated with CIPREL 5 and AZITO 4 thermal power plants in Côte d’Ivoire. The overall objective of the project is to ensure transmission and injection of the electricity generated by CIPREL 5 and AZITO 4 power plants into the interconnected grid in order to secure power supply and therefore contribute to enhancing service quality. Amount of the operation: XOF20 billion.
- Credit facility to the Togolese government for the partial funding of the plan to settle the national power company (CEET) debt to power suppliers in the Togolese Republic. Amount of the operation: XOF25 billion.
- Construction of a hotel and sports complex by Sports City Diamniadio Co. SA at Diamniadio in Senegal. The project is intended to strengthen Senegal’s supply of hotel facilities and sports and recreation areas, and contribute to job and wealth creation. Amount of the operation: XOF10.5 billion.
- Construction and operation of butane gas filling plants in Abidjan and Yamoussoukro by KAMA CI SA in Côte d’Ivoire. The project seeks to contribute to increased and improved supply of butane gas in Côte d’Ivoire, thereby helping to preserve the country’s vegetation cover. Amount of the operation: XOF7.5 billion.
- Proposal for the granting of refinancing facilities by BOAD to the WAEMU credit institutions as part of the stimulus package in the aftermath of the Covid-19 health crisis. In addition to measures taken by BCEAO in support to credit institutions and by BOAD to assist countries following the health crisis, the Bank is proposing, as a way of consolidating its support to WAEMU private sector companies, a XOF100 billion stimulus package of refinancing facilities to institutions. These funds are designed to provide the private sector, notably micro, small and medium-sized enterprises (MSMEs), with financing to cover their various needs: (i) cashflow requirements inherent to the COVID-19 crisis; (ii) revamping activities over the short-term; and (iii) making productive investments to strengthen or optimize production tools over the medium-term. Amount of the operation: XOF100 billion.
- Short-term loan to Banque Nationale pour le Développement Économique (BNDE) for the partial refinancing of the 2019-2020 groundnut season in Senegal. The purpose is to strengthen BNDE’s short-term financial resources and enable it to adequately support the cashflow requirements of the targeted companies, which include Goumbala El Hadjibou (GEH), Compagnie Nationale de Production des Oléagineux (COPEOL) and Société Nationale de Commercialisation des Oléagineux du Sénégal (SONACOS). The refinancing facility will contribute especially to the purchase, the partial processing and marketing of approximately 125,000 tons of groundnut seeds from producers in the groundnut basin of Senegal. Amount of the operation: XOF10 billion.
Three (3) LoCs and two (2) grants totaling € 275.6 million extended to the Bank were equally approved by the Directors:
- Credit facility by African Development Bank (AfDB) to BOAD. This loan is intended to assist WAEMU private sector companies in sustaining their activities and maintaining jobs in the context of the Covid-19 pandemic. It complements the actions undertaken by BOAD to support the Union’s economies in their efforts to mitigate the effects of the pandemic. Amount of the operation: €50 million, representing XOF32.8 billion.
- Credit facility by the Agence Française de Développement to BOAD for funding climate change mitigation and adaptation projects. This facility is meant to finance climate change mitigation and adaptation projects that fall within the WAEMU’s public and private sectors. The funds will be used mainly for capacity building, implementation of tools for monitoring and measuring impacts, support for the structuring of new financial tools, development of a portfolio of climate projects and support for structuring of a climate project preparation fund. Amount of the operation: line of credit and subsidy of €75 million and €600,000 or XOF49,2 billion and XOF393.57 million, respectively.
- Credit facility by the Agence Française de Développement to support BOAD in mitigating the impact of the Covid-19 health crisis. This facility is intended to support member countries and economic operators in the WAEMU region through participation in the financing of short-term economic recovery plans and sustainable recovery measures. Amount of the operation: €100 million, or XOF65.6 billion.
- Grant from ”Investing For Employment” facility promoted by KfW. lnvesting for Employment GmbH (IFE) is an investment facility established in 2019 by KfW to support job creation, training and improved working conditions in the following partner countries: Côte d’Ivoire, Egypt, Ethiopia, Ghana, Morocco, Senegal, Rwanda and Tunisia. In view of the Covid-19 negative effects on the economic situation in the partner countries of the initiative, IFE has decided to redirect its financial support towards maintaining jobs in the private sector. This grant will help support the pre-Covid-19 financially sound companies, thereby enabling them to maintain jobs and respond to the crisis. Amount of the operation: €50 million or XOF32.8 billion.
In addition, the Board of Directors approved the second rescheduling of the telecom network creation project by ALPHA TELECOMMUNICATION MALI (ATEL) SA and the creation of a Corporate Social Responsibility Committee (CSR Committee) within the West African Development Bank. In adopting a CSR policy, BOAD is committed to becoming a socially responsible corporation. Its CSR approach will become more significantly important in its relationships with stakeholders, fully participating in its economic performance. In this respect, special focus will be given to companies financed by BOAD, suppliers and procurements.
Finally, the Board took note of the following items submitted for information:
- Status of BOAD’s operations per country as at 31 December 2019;
- Report on the implementation of the 2019 annual tranche of BOAD 2019-2021 programme-budget;
- Conclusions of the annual review of BOAD’s credit rating by rating agencies;
- Credit Committee report to the Board of Directors on the proposed short-term loan to CMDT for the partial funding of the 2019-2020 cotton season in Mali;
- World Bank-WAEMU project for the promotion of affordable housing project financing in favor of low income populations: implementation and opportunities.
In closing the proceedings, Chairman Christian Adovelande, on behalf of the Board of Directors, thanked all the stakeholders and, particularly BCEAO, for their commitment and the technical resources made available to BOAD for the organization of this meeting under congenial conditions.
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