BOAD Board of Directors approved new loans involving XOF64.3 billion

Lomé, 20 June 2016. The Board of Directors of the West African Development Bank (BOAD) held its 101^st ordinary meeting at the headquarters in Lomé (Togo) under the chairmanship of Mr. Christian Adovelande, BOAD President and Chairman of the Board of Directors.

Following the approval of the minutes of its 100^th Board meeting held on 22 March 2016 in Dakar (Senegal), the Board also approved 11 medium and long-term loan proposals totalling XOF59.6 billion, one (1) equity investment proposal amounting to XOF793 million and one (1) short-term loan proposal of XOF4 billion.

These new loans brought to XOF3,862 billion the total amount of medium and long-term loans extended by BOAD in respect of 783 projects. As regards the total amount of short-term credit facilities, it stood at XOF242.9 billion spent over 27 operations.

Overall, the Bank’s cumulative funding (all operations combined) stood at XOF4105 billion for 810 operations.

Loan proposals approved were meant for the partial funding of the following projects:

• Rural economic growth support project (PACER, Benin). The aim of the project is to develop 405 ha of shallow lands for rice production and market gardening as well as the construction of back-up and marketing infrastructure. Loan amount: XOF6.5 billion; 
• Molodo-Nord area hydro-agricultural project: final stage under project phase 2 at Office du Niger (Mali). The implementation of this project will make it possible to produce 25,800 tons of paddy rice and 24,080 tons of vegetable products. Loan amount: XOF7.5 billion; 
• Improvement and rehabilitation of farmlands in the Mission-Tové area (PARTAM) – consolidation phase (Togo). This phase consists of protecting the works completed under the project from floods. Launched in 2011 with a loan of XOF8 billion from BOAD, the project aims to rehabilitate 360 ha of a former land and develop a new area of 300 ha. Amount of this new loan: XOF4 billion; 
• Phase 2 of the priority accessibility programme (PPD): planning and asphalting of the Boucle du Boudier (Senegal). This phase consists of planning and asphalting the Sédhiou-Kamoya -Marsassoum road over a stretch of 54 km, constructing thoroughfares in the townships of Sédhiou and Marsassoum over a stretch of 8 km, and rehabilitating the 81 km earth road between Marsassoum-Djibabouya-Bambaly and Sédhiou. Loan amount: XOF20 billion;
• The Buba-Catio road planning and asphalting project – phase 1: Buba-Ntunhane road (Guinea-Bissau). This first phase covers a section of 21.4 km. The purpose of the project is to make accessible the southern part of Guinea Bissau. Loan amount: XOF5 billion; 
• Expansion and upgrading of the Félix Houphouët-Boigny international airport facilities at Abidjan by AERIA SA (Côte d’Ivoire). The overall objective is to improve service delivery with a view to handling 2,000,000 passengers by 2020. Loan amount: XOF5.1 billion; 
• Construction and operation of a 5-star hotel under “HYATT CENTRIC Kermel Dakar” brand by Lacoste & Compagnie (L&C SA) (Senegal). With 150 rooms, this new hotel will expand supply of standard hotels in the Senegalese capital city. Loan amount: XOF5 billion; 
• Installation of an additional power genset as part of the construction of a combined cycle thermal power plant by TOBENE POWER SA at Tobène (Senegal). This additional power genset of 18.5 MW will increase the total installed capacity of the plant to 115 MW. Loan amount: XOF2.5 billion; 
• Agricultural development project for rice, onion, potato and maize farming at M’Bewani-Office du Niger by AGRO-INDUSTRIE ZED (AGRIZED) SA (Mali). This project will make it possible to produce, as from year 3 of operation, 1,900 tons of whole grain rice, 900 tons of broken rice, 6,500 tons of potato, 4,000 tons of onion and 3,900 tons of maize. Loan amount: XOF2.5 billion; 
• Granting of a second refinancing facility to ASUSU SA (Niger). This new line is meant for the refinancing of productive investments in sectors eligible for financing by the Bank. It comes under a programme initiated by BOAD and KfW to improve access for SMEs in the WAEMU region to financing through financial institutions. Loan amount: XOF1.5 billion; 
• Importation of raw materials by Ciments de l’Afrique Burkina Faso for the production of cement to be marketed in Burkina Faso: this short-term credit facility will contribute to the importation of raw materials required for the production of about 87,500 tons of cement per quarter. Loan amount: XOF4 billion.

The Board further approved a proposal for additional equity investment by BOAD in the share capital of the WEAMU Regional Mortgage Refinancing Fund (CRRH-UEMOA). BOAD thereby contributed to increasing the capital of CRRH-UEMOA from XOF5.83 billion as at present to XOF8.22 billion. Loan amount: XOF793 million.

The Directors expressed favourable opinion on the mid-term review of the financial outlook for 2016 and the statement of recovery of BOAD loans as at 31 May 2016.

Furthermore, they took notice of the following items:

• Memo on the status of BOAD equity investments;
• Report on the execution of BOAD debut bond loan in the international capital market;
• Report on the execution of BOAD 2016-2023 bond loan issuance;
• Report on the 2016 annual review of BOAD credit rating by rating agencies;
• Loan proposals to Guinea-Bissau and Senegal for the partial funding of the power interconnection project of OMVG member countries;
• Loan proposal for the partial funding of regional programme for renewable energy development and power efficiency (PRODERE) in the WAEMU region:  component 2 under phase 1;
• Enforcement of the charter applicable to BOAD and affiliated entities’ board directors;
• Minutes of the ordinary session of the WAMU Council of Ministers held on 24 March 2016 at Dakar;

In closing the meeting, President Christian Adovelande sincerely thanked, on behalf of the Board, the Togolese authorities for the warm and fraternal welcome extended to Directors, and the material and organizational arrangements that facilitated the organization of this meeting under congenial conditions.