BOAD 110th Board Meeting: 9 new projects totaling XOF92.5 billion increase the Bank’s net cumulative commitments to XOF5,293.5 billion
Abidjan, 19 September 2018. The Board of Directors of the West African Development Bank (BOAD) held its 110th ordinary meeting at the premises of the Central Bank of West African States (BCEAO) in Abidjan (Côte d’Ivoire) under the chairmanship of Mr. Christian Adovelande, Board Chairman and President of BOAD.
Following the adoption of the minutes of the 109th Board meeting held on 27 June 2018 in Lomé (Togo), the Board endorsed the statement of BOAD’s interim accounts as at 30 June 2018 and then approved the guidelines for the updating of 2018-2022 financial outlook and preparation of BOAD 2019-2021 programme-budget.
At this meeting, Board members approved nine (9) new operations including six (6) medium and long-term loan proposals involving a total of XOF74 billion, two (2) short-term loans amounting to XOF16 billion and one equity investment of XOF2.5 billion.
These operations bring to XOF5,293.5 billion BOAD’s cumulative commitments (all operations combined) since the beginning of its activities.
Loans approved are meant for the partial funding of following projects:
- Safe water supply in semi-urban centres in Togo. The overall objective of the project is to supply drinking water to 89 semi-urban centres in Togo. These include the least covered areas, with a coverage rate of 20% compared to a national average of 50%. BOAD funding will help erect 35 drinking water systems supplying 46 semi-urban centres through the construction of: i) 5 river intakes and 48 boreholes; ii) 35 water treatment units for a production of 28,056 m3/day of drinking water; iii) 369,459 linear meters of drinking water conveyance and distribution pipes; and iv) 39 water towers with a total capacity of 7,650 m3 supplying 546 standpipes and 700 private connections. Loan amount: XOF10,000 M;
- The Blouf loop construction and asphalting in Senegal. The project involves the construction and asphalting of the Blouf loop, including the rehabilitation of the Tendième-Thionck Essyl road section over a distance of 43 km and the construction of the 28 km Thionck Essyl-Balinghor road section and the 14 km Balinghor- Koutenghor road stretch. The overall objective of the project is to contribute to the economic integration of communities in the Blouf loop. The specific objectives include: i) improved traffic on the concerned roads by reducing travel time by about 60%; ii) reduced vehicle operating costs by about 60% from the first year of commissioning of the road, and iii) reduced number of road accidents by more than 70%. Loan amount: XOF15,000 M;
- Construction of a 20-storey multipurpose tower in Dakar by the “Caisse de dépôts et de Consignations” in Senegal. The project’s purpose is the construction of a 20-storey luxury building in Dakar in the Mamelles area over a rented surface area of 40,000 square meters including 24,000 square meters for office space, 6,000 square meters for business centers, including five conference, meeting and entertainment rooms, and 10,000 square meter parking. The overall objective of the project is to increase the number of office spaces in Dakar. More specifically, the project aims at providing: i) office space for 2,300 workers; ii) parking space for 220 vehicles; iii) five (5) fully equipped conference rooms. Loan amount: XOF15,000 M;
- Site development and construction of 944 low-cost and affordable housing units at Ouédo in the Abomey-Calavi municipality in Benin. The project’s objective is to: i) develop the site located at Ouédo, with a surface area of 18.75 ha; and ii) build 944 low-cost and affordable housing units on this site to be leased to beneficiaries under lease-purchase contracts. The overall objective is to contribute to improved living conditions and poverty reduction in the Abomey-Calavi municipality. The specific objectives of the project are to: i) provide housing to about 7,300 people; and ii) promote new ways of accessing housing for middle income population. Loan amount: XOF20,000 M;
- Construction of a 15 MW diesel thermal power plant and the supply of fuel to the power plant at Bor to increase power generation capacity in Guinea Bissau. The overall objective of the project is the construction of a 15 MW diesel thermal power plant at Bor (Prabis) and the supply of fuel to the power plant. Loan amount: XOF10,000 M;
- Equity investment by BOAD in the share capital of ADIWALE FUND I. The objectives of the Fund which will cover the WAEMU region and Guinea Conakry are to: (i) enable small and medium-sized enterprises (SMEs) in the French-speaking West African region to expand, create jobs and increase their financing capacity from debt investors such as BOAD and commercial banks; (ii) seize the many venture capital opportunities offered by companies in the target region for the expansion of their activities; and (iii) achieve high returns on investment over the medium-term and promote recurring revenue through equity or quasi-equity investments in unlisted African companies with good growth prospects. Loan amount: XOF2,500 M;
- Reinforcement work on the hotel 2 Février in Togo. The project’s purpose is the acquisition and installation of equipment for the upgrading of systems including: (i) fire safety; (ii) heating, ventilation and air conditioning; and (iii) vertical movement at the Hotel 2 Février in accordance with standards required by the new manager of the facility, Emaar Hospitality Group. Loan amount: XOF4,000 M;
- Third short-term loan to Ciments de l’Afrique Burkina Faso for the partial funding of the importation of raw materials meant for cement production in Burkina. The purpose of this operation is to partially finance the importation of raw materials (clinker, limestone, tuff and gypsum) meant for the production of cement to be sold in Burkina Faso. Loan amount: XOF6,000 M;
- Granting of a short-term credit facility to Coris Bank International (CBI) for the refinancing of loans as part of the importation of agricultural inputs in Burkina Faso. The purpose of this loan facility is to strengthen the short-term financial resources of CBI and thereby enable it to meet the cash requirements of inputs’ suppliers. This refinancing facility will support the purchase of 32,619 tons of phosphates and 12,000 tons of NPK to be marketed in Burkina Faso as part of the cotton and cereals seasons. Facility amount: XOF10,000 M;
- Granting of a second refinancing facility by the Development Bank of Austria (OeEB) to BOAD. This facility is meant for funding private sector infrastructure and productive investment projects within the WAEMU member countries. Facility amount: €30 million.
The Board expressed a favorable opinion on the appointment of BOAD’s statutory auditor for the 2019-2021 period and on the statement of recovery of the Bank’s loans as at 31 August 2018. Furthermore, the Board members took notice of the following items for information purposes:
- Minutes of the 28th meeting of BOAD Audit Committee;
- Allocation of the annual ordinary appropriations paid in for FY2017;
- Trust report on the management of equity investments of WAEMU member countries in the share capital of Orabank Côte d’Ivoire (former BRS Group restructured)
- Status of resources mobilized by BOAD as at 31 July 2018;
- Memorandum on the grant management of the Global Environment Fund (GEF) for the partial funding of the proposed diesel engine hybridization of multifunctional platforms using solar power systems in Togo (PHPS);
- Minutes of the ordinary meeting of the WAMU Council of Ministers held on 29 June 2018 in Dakar.
In closing the meeting, BOAD President Christian Adovelande expressed, on behalf of the Board, deep appreciation to the Ivoirian authorities for their warm and friendly welcome extended to Board members and the congenial material and organizational arrangements that facilitated successful deliberations.
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