The Board of Directors authorizes new commitments totaling XOF79.808 billion and approves KfW’s €5 million or XOF3.28 billion grant proposal meant for the implementation of “loans adapted to natural disasters (PACAN) in the WAEMU region”
Ouagadougou, 25 September 2019. The Board of Directors of the West African Development Bank (BOAD) held its 114th ordinary meeting at the premises of the Central Bank of West African States (BCEAO) in Ouagadougou (Burkina Faso) under the chairmanship of Mr. Christian Adovelande, President of BOAD, and Chairman of the Board of Directors.
Following approval of the minutes of the 113th meeting held on 20 June 2019 in Cotonou (Benin), the Board endorsed the Bank’s interim financial statements as at 30 June 2019, then the guidelines for the updating of the 2019-2023 financial outlook and the preparation of the 2020-2022 programme budget.
During this meeting, the Directors also approved seven new operations totaling XOF79.808 billion. These operations further brought the total amount of commitments (across all sectors) by BOAD to XOF5,769.108 billion since the commencement of its operational activities.
Approved loans were meant for the partial funding of the following projects:
Rehabilitation of the Ouarack-Dahra road in the Republic of Senegal. The project will help: i) improve road traffic by reducing the travel time by nearly 50%; ii) reduce vehicle operating costs by 30% as from the first year of the road commissioning; and iii) provide access to the project zone. Loan amount: XOF22 billion.
First tranche of the Ouédo site development project as part of the construction of 10,849 affordable housing units in the Abomey-Calavi municipality in the Republic of Benin. The project overall objective is to contribute to improved living conditions and poverty reduction. Its implementation will help: i) provide access to the site through the construction and asphalting of a road network; ii) equip the Ouédo site with a functional stormwater drainage system; iii) ensure continuous and reliable power supply to meet current and future demand; iv) ensure quality drinkable water supply by drilling two boreholes and constructing a network with water tower and water storage tank; and v) provide pleasant living conditions to future dwellers. Loan amount: XOF10 billion.
Construction of 519 classrooms as part the emergency phase of the proposed construction and equipment of school facilities in the Republic of Côte d’Ivoire. The project objectives in the communities involved, consist of: i) facilitating access for pupils to primary education by providing school facilities at distances not exceeding 5 km between two (2) schools; and ii) bringing pupils closer to schools by strengthening secondary school set-up through the construction of a centre school for three (3) villages. Loan amount: XOF16 billion.
Promotion of financial inclusion to provide access for low-income populations to financial services in Burkina Faso (PPFIB). The purpose of the project is to provide access to financial services for 300,000 beneficiaries through financial institutions, including decentralized financial systems. Loan amount: XOF5 billion.
Construction and operation of a solar PV power plant by the company KORHOGO SOLAIRE SA at Korhogo in Côte d’Ivoire. The project objective is to ensure better coverage of electric power demand in Côte d’Ivoire while reducing greenhouse gas emissions. Loan amount: XOF6.808 billion.
Provision of a specialized comprehensive advance package to Banque de l’Habitat du Sénégal for the partial refinancing of the proposed construction and marketing of a building complex at Mbao in Dakar by the company SERTEM IMMO SA. This advance package will allow BHS to increase its medium and long-term lending to productive investment projects, particularly, the SERTEM RIDWAN Mbao project and contribute to increased housing supply in Dakar. Loan amount: XOF10 billion.
Partial counter-guarantee to a short-term credit facility extended by Société Générale Côte d’Ivoire (SGCI) to Côte d’Ivoire Energies (CI-ENERGIES). The operation consists of providing a counter-guarantee to SGCI to partially cover the bond issuance, by order of Côte d’Ivoire Energies, of a standalone guarantee of XOF31 billion to AZITO ENERGIE SA (AZITO). Loan amount: XOF10 billion.
In addition, the Board endorsed the provision to the Bank by KfW of a grant meant for “loans adapted to natural disasters (PACAN)”. Indeed, at the initiative of Germany, a partnership titled “InsuResilience Global Partnership (IGP)” was launched as part of the COP23 in order to strengthen resilience to climate hazards in the developing countries. In line with IGP goals, KfW has broadened the range of products provided to its partners and has recently developed a new type of loan referred to as loans adapted to natural disasters. The grant amounts to € 5 million, or XOF3.28 billion. This project is based on an innovative approach, aimed at increasing resilience of the classical loan beneficiary to natural disasters. These loans will be extended as part of the regular lending to the public sector by BOAD. This grant, the first of its kind in the region, will help the Bank deal, to some extent, with issues related to natural disaster management oftentimes facing member countries.
Members of the Board expressed a positive opinion on the statement of recovery of BOAD loans as at 31 August 2019, the information memo on the support to administrative process digitalization in the WAEMU member countries and the memo on the issue of compensation of populations as part of BOAD-supported projects. Furthermore, they took note of the following items for information purposes: (i) the minutes of the 31th meeting of BOAD Audit Committee, (ii) the status of resources mobilized by BOAD as at 31 July 2019, (iii) the summary report on the country portfolio performance evaluation of non-commercial public projects financed by BOAD in Togo over the 2000-2015 period.
In closing the meeting, Chairman Christian Adovelande, on behalf of the Board of Directors, thanked the Burkinabe authorities and the Governor of BCEAO for the warm and fraternal welcome extended to members of the Board and for making the necessary arrangements for the meeting.
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