AfDB Approves FCFA 32 Billion Loan for Dakar-Diamniadio Highway
Tunis, 15 July 2009 – Senegal will receive a loan of CFAF 32.4 billion, equivalent to US$ 69.85 million (UA 45 million), to finance the Dakar-Diamniadio highway construction project, approved by the Board of the African Development Fund (ADF), the concessionary window of the African Development Bank (AfDB) Group, on Wednesday in Tunis.
The project, which involves the construction of a 31.60-km highway with toll stations, will provide a rapid link between Dakar and Diamniadio, gateway to a new economic development pole. It is expected to improve the living environment of people living in the vicinity of the road as well as enhance the overall operation of the transportation system, accelerate growth and promote regional integration.
It is one of the first Public Private Partnership (PPP) projects in the road sub-sector, designed to meet NEPAD’s objectives which consist of promoting private sector participation in the financing of infrastructure. The project will serve as a model to give impetus to the PPP mechanism.
This highway project is consistent with the Bank Group’s 2005-2009 strategy for Senegal, which focuses on improving the business environment with a view to achieving accelerated growth and access to basic infrastructure. It will help to improve the movement of goods and people in the Dakar region as well as neighbouring towns and countries.
The project is the first section of the Dakar-Bamako highway (Senegal-Mali), as well as Dakar-Labe-Conakry (Senegal-Guinea), co-funded by the Bank as part of efforts to integrate and link up neighbouring countries. Thus, from 2000 to 2004, the Bank-financed the rehabilitation of the Diamniadio-Mbour-Fatick-Kaolack road with the European Union and is currently financing the Kédougou-Saraya, Saraya-Mali border and the Tambacounda-Medina-Gounass sections in collaboration with other development partners, while the EU is financing the Birkilane-Tambacounda section.
Although the project covers the Dakar region, its impact goes beyond Senegal to the Economic Community of West African States (ECOWAS), since it links the Dakar-Lagos Trans-African Highway. Its impact will be particularly felt in Mali, Guinea, Guinea Bissau and the Gambia. The main beneficiaries are road users, some 300,000 inhabitants of Pikine as well as 3,000 families who will be resettled in Tivaouane Peul. Other beneficiaries will include exporters and economic operators involved in regional transport operations.
The ADF loan represents 13.41% of the entire cost of the project co-financed by the French Development Agency (AFD), the International Development Association (IDA) and the Senegalese government.
* 1 UA Units of Account) = 1.55223 US$ = 720.885 CFAF on 15/07/2009