BOAD exceeds XOF5,000 billion in investments in WAEMU economies
Dakar, 21 March 2018. The Board of Directors of the West African Development Bank (BOAD) met for its 108th ordinary meeting at the headquarters of the Central Bank of West African States (BCEAO) at Dakar in Senegal, under the chairmanship of Mr. Christian Adovelande, Chairman of the Board of Directors and President of BOAD.
After approving the report of its 107th meeting held on 13 December 2017 in Dakar (Senegal) the Board reviewed the Bank’s statement of accounts for the year ended 31 December 2017, which will be submitted to the WAMU Council of Ministers for approval.
The Board also approved new operations including fifteen medium and long-term loans totaling XOF190 billion and an equity investment of XOF5 billion. These operations bring total investments (all operations combined) to XOF5,109.8 billion, since the beginning of its activities.
Approved commitments involve the partial financing for the following projects:
- Construction of dams and irrigation schemes in the Denguélé district (Kabadougou and Folon regions) in the Republic of Côte d’Ivoire. The project will involve the construction of four (4) hillside dams with a total capacity of 21,772,199 m3 and the development of 1 000 hectares downstream of the said dams, including 880 ha for rice cultivation and 120 ha for market gardening. This project will improve food security and reduce poverty in the project areas. Amount: XOF15,500 M.
- The 2017-2020 support project for the development of local economies (PADEL) in seven areas (Sahel, North, Mouhoun loop, East, Centre North, Centre East, Centre South) in Burkina Faso. The purpose of the PADEL project is: i) to make available integrated local development kits (KIT-DELI), which is a minimum investment package based on the specific features of each region; ii) to set up a credit line of XOF25 billion to facilitate access to tailored credit facilities; iii) to strengthen the capacity of 48,000 informal production units. Amount: XOF30,000 M.
- Rehabilitation of the storm drain network in Ouagadougou (phase 3): Development of the inland and downstream outlets of the Bangr Wéogo Park in Burkina Faso. The objective of the project is to help improve the living environment of the populations in Ouagadougou. More specifically, the project aims to: (i) facilitate storm water drainage in Ouagadougou by significantly reducing the rate of flooding in neighborhoods; and (ii) improve the urban environment and traffic in the Bangr Wéogo city park; and (iii) increase the number of people adopting good public health practices. Amount: XOF10,000 M.
- Integrated development and management of the Gourou River Basin in Côte d’Ivoire. The project will strengthen and secure the sanitation network in Abidjan, while improving the socio-economic and health conditions of the populations in the four (4) districts covered by the Gourou basin. Its implementation will: i) contribute to an improved environment and quality of life of people living in the catchment area; ii) preserve the urban and lagoon environment; iii) contribute to the substantial reduction of erosion in the project area. Amount: XOF29,500 M.
- Cotonou storm water drainage project (emergency phase) in Benin. The project involves the construction of about 13,410 linear meters of primary collectors in Cotonou in eleven (11) watersheds distributed between Cotonou East (Tokplégbé, Finagnon, Yénawa, Gankpodo, Minontchou, Agbodjèdo and Kpondéhou), Cotonou Ouest (Vodjè, Cadjéhoun, Haie-Vive, Cocotiers, Zogbo, Zogbohouè and Mènontin) and the paving of some support sections of the said collectors, i.e. 21% of the expected works as part of the overall project. Works to be carried out are aimed at: (i) avoiding on a sustainable basis by 2020, the phenomenon of flooding in eleven (11) of the fifty (50) catchment areas of Cotonou; and (ii) improving the urban environment to facilitate the movement of users and the conduct of economic activities in the areas concerned. Amount: XOF20,000 M.
- Senegal’s priority road project (phase III): rehabilitation of the Kédougou-Salémata road, the Boudier loop (consolidation phase) and the Fouladou loop. The project will improve road conditions in order to increase the competitiveness of the areas concerned by reducing transport cost and time. It will promote better mobility of people and goods, as well as easy access to social facilities. Amount: XOF30,000 M
- Expansion of the cement factory’s production capacity of Ciments Du Sahel (CDS) SA at Kirène in Senegal. The project involves the expansion of the cement factory’s production capacity with the installation of a third integrated and autonomous clinker and cement production line with a capacity of 2.7 million tonnes of cement per year. Amount: XOF25,000 M.
- Construction of a cement factory by CIMENTS DE CÔTE D’IVOIRE (CIMIVOIRE) at Abidjan in Côte d’Ivoire. The project involves the construction of a clinker crushing unit with an installed capacity of three million tonnes of cement per year in the port area of Abidjan. The construction of this plant will contribute to: (i) wealth creation, (ii) cement production and marketing at competitive prices. Amount: XOF25,000 M.
- Granting of a sixth refinancing facility to Fidelis Finance – Burkina Faso. The purpose of the project is grant Fidelis Finance-Burkina Faso, a sixth refinancing facility comprising a “Refinancing Framework Agreement” component and a “Leasing facility” component, to refinance productive investments in sectors eligible for refinancing by the Bank. Amount: XOF5,000 M.
- BOAD’s equity investment in CAURIS IV Fund. The purpose of the project is for the Bank to acquire a stake in the capital of Cauris IV Fund for a period of 10 years. The objective is to invest in SMEs (20% of which are start-ups) seeking capital and expertise, in order to tap into growth opportunities in target regions (ECOWAS countries excluding Nigeria and Francophone Central Africa). Amount: XOF5,000 M.
The Board also approved the cancellation of two loans previously granted to the Bank, to replace new credit facilities. These include:
- Cancellation of the second loan granted by the Arab Bank for Economic Development in Africa (BADEA) for trade financing and granting of a new LoC. The operation involves the cancellation of a LoC granted by BADEA to BOAD, for a new, more attractive facility. Among other advantages, the new LoC allows for on-lending to local banks in the form of refinancing facilities to finance imports of WAEMU member countries from Arab countries. Amount: US$30 million
- Cancellation of the third loan granted by the Arab Bank for Economic Development in Africa (BADEA) to BOAD and granting of a new refinancing This new facility, granted by BADEA to replace its third loan, is meant for refinancing projects in the private sector. Amount: US$15 million
The Board expressed favorable opinion on the Bank’s 2017 annual report, the statement of recovery of BOAD loans as at 28 February 2018 and the overall statement of loan recovery as at 31 December 2017, as well as the proposed updating of BOAD’s equity investment strategy.
The Board also took note of the following items:
- Report of the 27th Meeting of BOAD Audit Committee.
- Status of BOAD’s country operations as at 31 December 2017.
- Implementation of the 2015-2019 strategic plan: Year 3 end review.
- Implementation report on the 2017 annual component of BOAD’s 2017-2019 programme-budget.
- Status of utilization of resources mobilized by BOAD as at 31 December 2017.
- Report of the Credit Committee to the Board of Directors following the home consultation of its members as part of the loan proposals and short-term credit facilities to CMDT in Mali and BNDE in Senegal
- Compendium of recommendations and decisions taken at BOAD Board meetings held in 2017.
- Report of the ordinary meeting of the WAMU Council of Ministers held on 22 December 2017 in Dakar.
In his closing remarks, Mr. Christian Adovelande, on behalf of the Board of Directors, sincerely thanked the Senegalese authorities and the Governor of BCEAO, for the warm and fraternal welcome extended to the Directors, as well as for the material arrangements that facilitated the organization of this meeting under congenial conditions.
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