BOAD grants new loans totalling XOF90 billion
Ouagadougou, 23 September 2016. The Board of Directors of the West African Development Bank (BOAD) held its 102nd ordinary meeting at the premises of the Central Bank of West and Central African States (BCEAO) in Ouagadougou (Burkina Faso) under the chairmanship of Mr. Christian Adovelande, Chairman of the Board of Directors and President of BOAD.
Having approved the minutes of its 101st meeting held on 20 June 2016 in Lomé (Togo), the Board considered and approved BOAD interim financial statements as at 30 June 2016 as well as the guidelines for the updating of the 2016-2020 financial outlook and the preparation of the 2017-2019 programme budget.
Nine new medium and long-term loans totalling XOF85 billion were approved and brought the total amount of BOAD medium and long-term loans to XOF3,971.4 billion covering 990 projects.
A new XOF5 billion short-term loan further brought the total amount of short-term loans to XOF241.4 billion covering 30 projects.
Overall, cumulative loans granted by BOAD stood at XOF4,212.8 billion for 1,020 projects.
Approved loans are meant for the partial funding of the following projects:
- Buba-Catiò road planning and asphalting project – phase 2 (Guinea Bissau). This second phase involves the construction of the Sintcham Paté-Catio section over a stretch of 53.7 km. The overall project aims to open up access to the southern part of Guinea Bissau. Loan amount: XOF13 billion;
- Construction of the Sikasso township crossing into a 2×2 lane road (Mali). The purpose of the project is the widening and asphalting of the crossing over a stretch of 4.6 km and the rehabilitation of connected roads over a distance of 2.4 km. Loan amount: XOF20 billion;
- Surface water mobilization and development project in the Central Plateau (Burkina Faso). The project involves the construction of 5 dams at Wéotenga, Taba, Pougma, Kouldisgou and Niou, as well as the development of 195.3 ha downstream of the said dams for the production of rice, maize and vegetable crops. Loan amount: XOF10 billion;
- Decentralized rural electrification of 62 communities in the 5 regions from solar energy (Togo). This project represents the first phase of the solar energy development programme (PROVES) in a total amount of XOF80 billion. Its implementation will make it possible to connect low voltage customers, provide public lighting and indoor electrical wiring for customers. Loan amount: XOF6 billion;
- Guinea-Mali electric power interconnection project: construction of the Sanankoroba-Guinea border 225 Kv transmission line and expansion of the Sanankoroba high voltage substation (Mali). The project aims to reduce the cost of KWh and secure power supply to Mali. Loan amount: XOF18 billion;
- Construction and operation of a 50 MWc photovoltaic power plant at Kita under a “Build-Own-Operate-Transfer (BOOT)” contract by AKUO KITA SOLAR SA (Mali). The project is justified by its role in improving power supply and reducing greenhouse gas emissions in Mali. Loan amount: XOF11 billion ;
- Renovation and expansion of the AZALAI Hôtel Indépendance in Ouagadougou by Société Burkinabè de Promotion Hôtelière (SBPH SA) (Burkina Faso). Upon completion of the works, the accommodation capacity of the hotel will increase from 176 to 230 rooms. Loan amount: XOF7 billion;
- Renewal of the short-term loan to the Road Maintenance Fund (FER) of Côte d’Ivoire for the partial funding of its road maintenance programme. Loan amount: XOF5 billion.
The Board further approved:
- The granting of a seventh line of credit to BOAD by the French Development Agency (AFD). Worth €100 million or XOF65.59 billion, these funds will be used to consolidate BOAD’s concessional financing activity;
- The provision of an overdraft facility involving €50 million or XOF32.8 billion to BOAD by ICD;
- A grant from International Initiative for Impact Evaluation (3ie) to BOAD for conducting impact evaluation of two hydroagricultural development projects at M’Bahiakro (Côte d’Ivoire) and Matam -Phase 2 Extension (Senegal), involving US$442,029 or XOF261,239,139.
- The readjustment of conditions for the partial funding of the construction of a 90 MW thermal power plant at Kayes by ALBATROS ENERGY MALI SA;
- The cancellation of the line of credit granted by US EXIMBANK to BOAD for the refinancing of the AZITO project in Côte d’Ivoire.
Members of the Board expressed a positive opinion on the statement of recovery of BOAD loans as at 31 August 2016 and reviewed the following items:
- Note on the allocation of the FY2015 annual ordinary appropriations paid-in;
- Status report on the utilization of resources mobilized by BOAD as at 31 July 2016;
- Information note on the updating of BOAD’s equity investment strategy;
- Minutes of the ordinary meeting of the WAMU Council of Ministers held on 24 June 2016 in Lomé.
In closing the session, Chairman Christian Adovelande, on behalf of the Board of Directors, thanked the Burkinabe authorities and the Governor of BCEAO for the warm and brotherly welcome extended to members of the Board, as well as for the logistic and organizational support that ensured a smooth holding of the session.
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