The Board of Directors approves new loans totaling XOF136.2 billion to WAEMU economies

Irène ASSIONGBONNews, Uncategorized

Cotonou, 20 June 2019. The Board of Directors of the West African Development Bank (BOAD) held its 113th ordinary meeting at the premises of the Central Bank of West African States (BCEAO) in Cotonou (Benin), under the chairmanship of Mr. Christian Adovelande, BOAD President and Chairman of the Board of Directors.

Following the approval of the minutes of its 112th Board meeting held on 20 March 2019 in Dakar (Senegal), the Board took note of the allocation of the ordinary annual appropriation paid by member countries for 2018 and the report on the annual review of BOAD credit ratings by rating agencies.

The Board also approved eleven (11) new operations including seven (7) medium and long-term loans totaling XOF115 billion, two (2) refinancing facility involving XOF15 billion, a short-term loan in an amount of XOF5 billion and an equity investment of XOF1.2 billion.

These operations bring the Bank’s total commitments (all operations combined) to XOF5,684.3 billion since the commencement of its operations.

 The approved loans cover the partial financing of the following projects:

  • Support programme to the development of local economies in six (6) regions (Hauts-Bassins, South-West, Centre, Central Plateau, Cascades and Centre-West) in Burkina Faso. The purpose of the project is: i) the construction for the populations and communities in six (6) regions in Burkina Faso (Hauts-Bassins, South-West, Centre, Central Plateau, Cascades and Centre-West) of a set of production, marketing and communication facilities to support their economic activities; ii) the provision of a LoC of XOF1 billion to 3,000 micro and very small enterprises; and iii) the building of technical capacities for 2,000 informal production units. Loan amount: XOF20 billion;
  • Proposed upgrading and asphalting of the Katchiamba-Sadori road section over the trunk road RN17 in Togo. The purpose of the project is the upgrading and asphalting of the Katchiamba-Sadori road section of the trunk road RN17 over a total stretch of 60 km, and the construction of two (2) bridges across the Kara and Koumongou rivers. The overall objective is to maintain a smooth and permanent road traffic between Katchiamba located in the Kara region and Sadori in the Savanah region whilst making accessible the entire western part of these two (2) regions. Loan amount: XOF20 billion;
  • The Bobo Dioulasso dry port rehabilitation project in Burkina Faso. The purpose of the project is the rehabilitation of roads and utilities of buildings, parking lots and related facilities of the existing multimodal logistics platform of the port over a total area of 19 hectares. The key objective of the project is to improve the quality of transport service and handling of import and export goods. Loan amount: XOF2 billion;
  • Proposed site development and construction of 1085 social and low-cost housing units at Samanko in Mali. The purpose of the project is: i) the development of 42 hectares of land located at Samanko, 15 km away from downtown Bamako, in the rural community of Mandé, and ii) the construction on this site of 1,085 housing units including 785 social housing units (565 of F3-type and 220 of F4-type) and 300 low-cost housing units (175 of F3-type and 125 of F4-type) to be leased to beneficiaries. Loan amount: XOF25 billion;
  • Project for the modernization of the Niamey airport and construction of the Tilabéri airport in Niger. The purpose of the project is: i) the modernization of the Niamey airport and its technical and commercial operation under PPP and ii) the construction of the Tilabéri airport to accommodate non-commercial flights and serves as a back-up airport. For the Niamey airport, works relate to the construction and equipment of a new two-storey passenger terminal as well as the renovation of the former terminal. As regards the Tilabéri airport, works will focus on the construction of a runway with aircraft aprons, a terminal and related facilities meant for the good operation of the airport. Loan amount: XOF14 billion;
  • Proposed construction and equipment of school facilities in Côte d’Ivoire. The purpose of the project is the construction and equipment of 3,000 classrooms in nursery and primary schools, 25 junior high schools and 5 senior high schools and supply of 100,000 semi-metallic tables and benches throughout the national territory. The overall objective is to contribute to the implementation of the government’s national education strategy that aims at making schools accessible to all by 2025. Loan amount: XOF30 billion;
  • Poultry farming complex creation project by AGRO4LIFE SA at Toumodi in Côte d’Ivoire. This complex will include a breeding unit, a feed mill, a waste recycling unit and a sewage treatment unit. The project is justified by the existence of a conducive market for meat products consisting of poultry meat and falls under a Government-supported institutional framework for the promotion of local production, through the Côte d’Ivoire’s 2012-2021 strategic plan for the revival of poultry farming (PSRA). Loan amount: XOF4 billion;
  • Granting of a fourth refinancing facility to Banque Malienne de Solidarité (BMS-SA) in Mali. Meant for the refinancing of productive investment projects in sectors eligible for the Bank’s financing, this facility is as part of the third programme initiated by BOAD and KfW to support MSMEs in the WAEMU region by improving their access to financing through the commercial banking sector. Loan amount: XOF10 billion;
  • Proposal for the granting of a refinancing facility to Banque de l’Union Côte d’Ivoire (BDU CI). Like the loan provided to BMS SA, this second facility will be used to refinance projects promoted by MSMEs in order to improve their access to funding through the banking sector. Loan amount: XOF5 billion;
  • Proposed equity investment by BOAD in the share capital of MANSA BANK in Côte d’Ivoire. The purpose is to create a universal bank with a key focus on financial inclusion through digitalization and merchant banking, whose share capital will be fully owned (100%) by the WAEMU region’s players in order to: (i) foster the emergence of major regional African groups; (ii) promote SMEs/SMIs and facilitate access to financing for private individuals and micro-enterprises excluded from the traditional financial system; and (iii) efficiently support member countries’ economies. Loan amount: XOF1.2 billion;
  • Short-term loan proposal to the Caisse Nationale de Crédit Agricole du Sénégal (CNCAS) for the partial refinancing of farming inputs distribution as part of the 2019-2020 crop season. The set objective is to increase CNCAS’s short-term financial resources to enable it to cover adequately cash requirements of inputs suppliers during the crop season. The loan will make it possible to purchase nearly 44,000 tons of inputs. Loan amount: XOF5 billion.

Loans previously extended to Guinea Bissau were rescheduled. These included loans for the partial funding of: i) the emergency phase of the proposed upgrading and aspha lting of 80 km of roads under the national priority road network (construction of the Bissau southern bypass and the Bissau-Birla-Nhacra road) and ii) the proposed rehabilitation and modernization of the Osvaldo Vieira international airport in Bissau.

The Board endorsed the provision of a World Bank line of credit and the management of « Clean Technology Fund (CTF) » grant as part of the refinancing of the Regional off-grid electrification project (ROGEP) in West and Central Africa. The key objective of the project is to increase through harmonized regional approach, access for households, companies and local communities to electricity using off-grid and modern systems. BOAD will act as an intermediary between the World Bank and local banks that will finance solar service providers in the eight WAEMU member countries. Loan amount: XOF79.961 billion. As regards CTF grant, it is meant for covering 50-80% of credit losses associated with technological failures of project equipment. It will be provided by 2020. Grant amount: XOF39.18 billion.

Furthermore, the Board approved the presentation note on the West African Development Bank’s policies in the area of: i) environmental and social management in project financing, ii) environmental and social compliance auditing, iii) grievance procedure, iv) anti-fraud and anti-corruption policy in the Bank’s operations, and v) whistleblower protection.

At last, the Board expressed favourable opinion on the mid-term review of 2019 financial outlook and the statement of recovery of BOAD loans as at 31 May 2019. Furthermore, it took note of the minutes of the ordinary meeting of the WAMU Council of Ministers held on 22 March 2019 in Dakar.

In closing the meeting, President Christian Adovelande warmly thanked, on behalf of the Board, the Beninese 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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