AfDB and DP World Sign €47.5 Million Loan Agreement for Dakar Container Terminal
Dubai, 31 March 2010 - The African Development Bank (AfDB) Group and the Dubai Port World Dakar (DPWD) on Wednesday, 31 March 2010 in Dubai signed an agreement for a €47.5 million senior loan to finance the upgrading of the container terminal at the Dakar sea port in Senegal.
The agreement was signed by the AfDB Private Sector Department Director, Tim Turner, and the DPWD Business Development Manager, Manuel V. Pascua.
The Dakar Port is one the busiest in West Africa, handling 90% of the total value of Senegal’s foreign trade. Its geographical location is at crossroads between Europe, North America, South America, and Sub-Saharan Africa.
The project comprises equipment upgrades, operation, management, and maintenance of the existing container terminal in the Northern Zone of the port: upgrading the stacking areas pavement and improving other infrastructure such as rail installations, electricity, road and buildings in the port.
Speaking at the ceremony, Mr. Turner underscored the importance of the project. “We see a bright future for Dakar as a major trading center, serving the surrounding region as well as Senegal's own development needs. We look forward to a long and mutually beneficial relationship with DP World and we welcome them as partner to create a modern Senegal nation, connected with the rest of the region and the world through trade and other business links,” he said.
Port infrastructure is among the basic facilities that allow a country to unlock its potential and gain access into the global supply chain. On completion, the Dakar port will improve efficiency and lower the delivery cost of both imported and exported goods as well as stimulate new export activities, thereby benefiting shippers, shipping lines, consumers and the government.
The project will also support knowledge transfer, build local capacity, create jobs for the people and make a positive contribution to the economy.
The project is well aligned with Senegal’s development strategy, and Bank support to public-private partnerships (PPPs), which helps to reduce pressure on stretched public finances. It also helps to ensure that projects are managed according to the highest good governance and environmental sustainability standards . The project is in line with the Bank Group’s private sector operations priorities, which encourage infrastructure development and regional integration through PPPs.