Senegal, Mozambique, Guinea Bissau and Comoros Share US$ 113.85 Million AfDB Group Funding
Tunis, Tunisia, 15 July 2009 –The Boards of Directors of the African Development Bank (AfDB) Group held their regular weekly sessions on Wednesday in Tunis, where they approved five operations in four countries to the tune of US$ 113.85 million (73.36 Units of Accounts*) to finance in infrastructure development, governance and capacity building projects.
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 AfDB Group. The project, designed to improve road transportation, spur economic growth and regional integration, will involve the construction of a 31.60-km highway with toll stations providing a rapid link between Dakar and Diamniadio, gateway to a new economic development pole. 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 and to will give impetus to the PPP mechanism.
The ADF Board approved a US$ 20.6 million loan, equivalent to UA 13.3 million UA, to finance the rehabilitation of the Massingir Dam in Mozambique. The Massingir Dam Emergency Rehabilitation Project aims at ensuring the sustainability of the dam by preventing its total collapse in the event of heavy downpour. Sustainable improvements of the dam’s operational efficiency will improve food production and the living standards of the target group in Xai-Xai province, in particular, and the country at large. This would, in turn, enhance the productive capacity of farmers to produce major crops downstream in Chokwe and Xai-Xai, thereby ensuring food security. The project, to be implemented over a two-year period (2009-2011), comprises the rehabilitation of the bottom outlets of the dam and management that includes consultancy services for the supervision of engineering works.
Guinea Bissau will receive a US$ 12.10-million grant, equivalent to 7.8 million UA to finance the country’s Administrative Capacity Building Support Project, designed to improve the supply as well as , conditions and quality of vocational training in administration. The project will address, with greater commitment, address the problem of inadequate capacity that affects the delivery of public services. The low qualification of workers, the lack of a general capacity building plan, low salaries and weak leadership at various levels are among the challenging issues to deal with. Key outcomes include the establishment and nurturing of the National School of Administration (ENA); improved performance of economic and financial arms of the public administration; as well as project management and monitoring.
The Boards approved two grants amounting to US$ 11.30 million, equivalent to (UA 7.26 million, ) to the Union of the Comoros, to support the government’s efforts to build strong and efficient public institutions as well as develop and nurture good economic governance principles and practices. A US$ 8.2 million (UA5.26 million grant will be devoted to the Institutional Capacity Building Project (ICBP), while the US$3.10 million (UA 2 million UA) budget support will finance the Economic Reform Support and Financial Governance Programme (PAREGF), in efforts to promote more effective and efficient management of public resources. Specifically, the project aims at improving public finance management and streamlining the public finance reform process.
* 1 UA = 1.55223 US$ = 720.885 CFAF= 41.3204 MZN = 540.289 KMF on 15/07/2009