The BOAD Board of Directors, in conjunction with BCEAO and the WAEMU Commission, authorizes a financial assistance of XOF196.6 billion to member countries as part of the fight against COVID-19 and approves new loans for projects totaling XOF158,1 billion.
Lomé, 25 March 2020. The Board of Directors of the West African Development Bank (BOAD) held its 116th ordinary meeting, under the chairmanship of Mr. Christian Adovelande, Chairman of the Board and President of BOAD. Due to restrictions related to the coronavirus (COVID-19) pandemic, the meeting was held by videoconference.
After approving the minutes of its 115th meeting held on 18 December 2019 in Dakar (Senegal), the Board reviewed and approved BOAD’s annual financial statements for the year ended 31 December 2019.
Based on a proposal by the President of BOAD, the members of the Board agreed to grant to each WAEMU member country a XOF15 billion loan to be made immediately available, and softened through the BOAD interest subsidy mechanism, recently replenished by BCEAO and the WAEMU Commission for XOF25 billion and XOF15 billion respectively, to support member countries in their fight against the COVID-19 pandemic.
The total amount of these soft loans stands at XOF120 billion for urgent measures to be taken in dealing with the Coronavirus health crisis. They further decided to suspend prompt notices for principal repayments by member countries involving XOF76.6 billion of debts due for the rest of the year, in support for their response to the pandemic. This represents a total support of XOF196.6 billion provided by BOAD in connection with COVID-19.
The Board also approved new operations for a total amount of XOF160.825 billion, including medium and long-term loans totaling XOF148,1 billion and a short-term loan of XOF10 billion. These operations brought BOAD’s total commitments (all operations combined) to XOF5817,8 billion to date.
Approved loans are meant for the partial funding of the following projects:
- Hydro-agricultural development of 1,300 ha as part of the second round of the Kandadji project’s resettlement action plan (PAR 2). The overall objective of the project is to contribute to: (i) poverty alleviation through the development of downstream farmlands that can be irrigated from the river Niger; (ii) regeneration of natural environment; and (iii) food security of the populations. Loan amount: XOF15 billion.
- Upgrading and asphalting of urban roads in the city of Ouagadougou (PAVO) in Burkina Faso. The specific objectives of this project are: i) to improve mobility on the roads concerned by reducing travel time by nearly 50%; ii) to reduce vehicle operating costs by about 40% after commissioning the roads; and iii) to reduce the number of traffic accidents by more than 50%. Loan amount: XOF20 billion.
- Upgrading of the Boulevard de Marseille in Abidjan (consolidation phase) in Côte d’Ivoire. The consolidation phase will consist of (i) reinforcing the carriageway structures to take into account the level of deterioration of the existing sub-traffic carriageway; (ii) improving the sewerage system; and (iii) increasing the density of the public lighting system. These works will help reduce the risks of premature deterioration of the road and flooding of its area of influence. Loan amount: XOF8.106 billion.
- Upgrading of the Sévaré-Mopti section of the trunk road No.6 (RN 6) and urban roads in the town of Mopti in the Republic of Mali. The overall objective of the project is to improve traffic flow on the road linking the town of Mopti to the locality of Sévaré and within the town of Mopti by providing modern infrastructure to improve the safety and living conditions of the citizens. Loan amount: XOF20 billion.
- Upgrading of the Démette-Cas Cas and Louga-Ouarack roads in the Republic of Senegal. The overall objective of the project is to contribute to the economic growth of Senegal by making accessible the production areas and increasing trade. Loan amount: XOF25 billion.
- Site development and construction of 791 social and low-cost housing units as part of the construction of 3,035 social and low-cost housing units at Ouédo in the municipality of Abomey-Calavi (Republic of Benin). The overall objective of the project is to contribute to improved living conditions and poverty reduction in the municipality of Abomey-Calavi. The specific objectives are to: (i) provide housing for approximately 6,000 people and (ii) promote new ways of accessing housing for middle-income populations. Loan amount: XOF20 billion.
- Rehabilitation and equipment of Korhogo and Bouaké airports in the Republic of Côte d’Ivoire. The overall objective of the project is to contribute to the economic growth of Côte d’Ivoire by opening up the country’s regional economic centres through (i) improved safety and security of aeronautical activities in upgrading facilities to aeronautical standards and providing high-performance navigational aid equipment and (ii) contributing to the opening-up and development of the Korhogo and Bouaké regions. Loan amount: XOF25 billion.
- Construction and operation of the “Tour Entente” by the Société de Gestion de la Tour Entente (SGTE) SA in Abidjan (Côte d’Ivoire). The project aims at generating additional revenues to finance community social projects of the “Conseil de l’Entente”, in particular. Loan amount: XOF15 billion.
- Granting of a short-term loan of XOF10 billion to NSIA Banque Côte d’Ivoire for the partial refinancing of the 2019-2020 cocoa season in Côte d’Ivoire.
- Rescheduling of the repayment terms of the loan granted for the partial funding of the solution production capacity upgrading project by PHARMIVOIRE NOUVELLE (PHN) SA in Abidjan (Côte d’Ivoire). Amount of the operation: XOF2.719 billion.
In addition, the Board of Directors approved the proposals for renewal of the Bank’s Audit Committee and Credit Committee membership.
In closing the proceedings, Chairman Christian Adovelande, on behalf of the Board of Directors, thanked all stakeholders, and particularly, BCEAO, for their mobilization and the technical resources made available to BOAD for holding this meeting under congenial conditions. He further reiterated the institution’s support to the affected populations as well as the entire scientific community which has been working hard to address the coronavirus pandemic.
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