The Board of Directors approved new loans totaling over XOF256 billion

Irène ASSIONGBONNews

Logo BOADDakar, 27 June 2017. The Board of Directors of the West African Development Bank (BOAD) held its 105th ordinary meeting at the headquarters of the Central Bank of West African States in Dakar (Senegal), under the chairmanship of Mr. Christian Adovelande, BOAD President and Chairman of the Board of Directors.

Following the approval of the minutes of its 104th Board meeting held on 22 March 2017 in Dakar (Senegal), the Board also approved the statement of interim accounts as at 31 March 2017, as well as fifteen new short, medium and long-term operations totaling XOF256.377 billion. These new loans brought the total amount of BOAD loans to XOF4,694.78 billion spent over 1,071 operations.

PARTIAL FUNDING OF PROJECTS: 

  • Rehabilitation and expansion of irrigated village lands in the Donaye-Diattar, Guédé, Mboyo and Podor areas in the Podor Department (Senegal). This project aims to produce additional 30,000 tons of paddy rice per annum, while the domestic production is about 350,000 tons for a demand estimated at 800,000 tons. Amount: XOF18.5 billion.
  • Upgrading and asphalting of the Lokossa-Deve-Aplahoué-Togo border road (Benin). Due to the strategic position of this road connecting Benin and Togo, the project implementation will bring closer cross-border markets. Amount: XOF25 billion.
  • 2017-2019 programme for periodic maintenance of surfaced roads (Senegal). This involves the periodic maintenance of 722 km of the surfaced road network, as well as the widening and strengthening of the Kaffrine-Mbacké and Fatick-Foundiougne-Passy surfaced roads over a stretch of 167 km. Amount: XOF30 billion.
  • Safe water supply network upgrading project in the city of Abidjan (Côte d’Ivoire). This project should contribute, along with other ongoing projects, to increase the volume of potable water produced from 460,000 m3 to 744,000 m3 in December 2017 for a demand estimated at 500,000 m3 per day. Amount: XOF15 billion.
  • Site preparation and construction of 1,300 social housing units at Ouèdo in the municipality of Abomè-Calavi (Benin). This project will be developed on an area of 25 ha and will provide housing to 9,500 people and promote new modes of homeownership by the population. Amount: XOF20 billion.
  • Construction of a commercial and residential building complex at Dakar and residential hotels at Saly by Société Immobilière de la Presqu’île (SIPRES) (Senegal). This involves the construction of apartments, office spaces and scalable centres over an area of 3,900 m² and 140 parking spaces, on the one hand, and 40 fully equipped residences, on the other, in the resort town of Saly. Amount: XOF4.5 billion.
  • Construction and operation of a 5-star hotel under the “Marriott Hotels and Resorts Cotonou” banner by Société d’Hôtellerie, de Restauration et de Loisirs (SHRL Benin) in Cotonou (Benin). With 202 rooms, this hotel will improve supply of high-standard hotel facilities in Cotonou. Amount: XOF7.4 billion.
  • Construction and operation of a 3-star hotel under the APPART’CITY banner by Société ELYTIS Gestion Hôtelière in Abidjan (Côte d’Ivoire). This hotel will include 154 apartments. The project forms part of the niche industry (provision of apartments with hotel services) still poorly covered. Amount: XOF4 billion.
  • World Bank credit facility to BOAD for on-lending to the Caisse Régionale de Refinancement Hypothécaire (CRRH-UEMOA). This credit facility will be used to finance housing projects. Amount of the operation: US$130 million, or XOF80.158 billion.

GRANTING OF REFINANCING FACILITIES:

Two operations were approved in a bid to support productive investments made by small and medium-sized enterprises in sectors eligible for BOAD financing. These included:

  • Banque de Développement du Mali SA (BDM SA): XOF10 billion.

 Société Générale Bénin (SGB) SA: XOF10 billion.

  EQUITY INVESTMENTS:

 In the third capital increase of Air Côte d’Ivoire (Air CI). This operation forms part of the airline’s capital increase from XOF63 billion to XOF130 billion. Amount: XOF5.319 billion.

  • In the share capital of the Société Immobilière et d’Aménagement Urbain (SImAU) (Bénin). This company will be in charge of the implementation of the proposed construction of 20,000 low-cost housing units initiated by the Beninese Government. Amount: XOF500 million.

 SHORT-TERM LOANS:

 Loan to the Cimenteries de l’Afrique Burkina Faso for the partial funding of the importation of raw materials for the production of cement to be sold in Burkina Faso. Amount: XOF6 billion.

  • Loan to the Société Nationale d’Electricité du Sénégal (SENELEC) for the partial funding of its operating cycle. Amount: XOF20 billion.

The Board of Directors further approved changes in loan conditions for two projects:

  • Construction of an integrated cement plant by the Nouvelle Cimenterie du Niger (former SNC) at Malbaza in Niger. The loan amount was brought up from XOF12.5 billion to XOF16.107 billion.
  • Construction of a pharmaceutical plant for the production of solutes by Société DO PHARMA at Avéta in Togo. The loan amount increased from XOF2.3 billion to XOF3.167 billion.

Furthermore, the Directors expressed favourable opinion on the following items:

  • Statement of recovery of BOAD loans as at 31 May 2017;
  • Mid-term review of 2017 financial outlook;
  • Proposed review of the compensation paid to PricewaterhouseCoopers as External Auditor of BOAD for 2016-2018.

At last, they took notice of the following items:

  • Proposed cancellation of a portion of loan granted to the Government of Togo by the Energy Development Fund (FDE) for the partial funding of the power facilities upgrading and construction project in Togo
  • Loan proposal for the partial funding of the interconnected domestic power grid upgrading project (PR-RNI) in Burkina Faso
  • Loan proposal for the partial funding of the decentralized rural electrification project covering 62 communities in 5 regions using solar PV system in Togo
  • Report on the 2017 annual review of BOAD credit rating by rating agencies
  • Review of the Regional PPP Project Development Unit’s activities (from January 2014 to May 2017
  • Proposed revision of BOAD’s Articles of Association
  • Minutes of the ordinary session of the WAMU Council of Ministers held on 31 March 2017 at Dakar

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

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