AfDB approves US$428 million in energy and infrastructure, transport and water projects in eight African countries

Abidjan Cote D’Ivoire , Capital Markets in Africa — The Board of Directors of the African Development Bank Group (AfDB) on Wednesday, September 30, 2015 approved combined loans and grants amounting to US $428.43 million to finance projects in energy, infrastructure, transport and water and sanitation in eight African counties – Ghana, Tanzania, Zimbabwe, Guinea Bissau, Guinea, Senegal and Côte d’Ivoire.

Under the approvals, Ghana Airports Company Ltd. will receive a loan of US $120 million to finance its capital investment programme which entails the construction of a new terminal at Kotoka International Airport in Accra and the rehabilitation of other airports at Kumasi, Temale, Ho and Wa, respectively.

In Tanzania, the approved investment comprises a US $97.42-million AfDB loan and US $44.29 million from the Africa Growing Together Fund (AGTF) to finance phase two of the Dar es Salaam’s Bus Rapid Transit (BRT) Project. The project involves the construction of 20.3 km of exclusive BRT lanes and Non Motorised Transport (NMT) facilities along Kilwa Road corridor as well as Kilwa road itself.

Zimbabwe will receive a US $16.15-million grant from the resources of the Zimbabwe Fund (ZIM-FUND) to finance the second phase of the country’s Urgent Water Supply and Sanitation Rehabilitation (UWSSRP) project to be implemented in Harare, Chitungwiza, Ruwa and Redcliff with an estimated 1.9 million population. The project aims to protect public health through service improvement, preservation of physical assets, and resuscitation of capacity and improvement of financial sustainability of the water and sanitation service providers.

The Board also approved a multinational Gambia River Basin Development Organisation (OMVG) Energy Project which will benefit The Gambia, Guinea-Bissau, Guinea and Senegal with combined loans and grants financing amounting to US $64.93 million.

The project, which falls within the framework of the countries’ regional cooperation and integration, seeks to promote the sharing of energy and improve electricity supply by providing renewable, clean and affordable power. It comprises: (i) the development of a 128-MW hydro-electricity dam with an annual output of 402 GWh; and (ii) an interconnection network of 1,677 km, comprising 15 transformer stations and two dispatching centres.

The Gambia and Guinea-Bissau will each receive a soft loan and a grant amounting to US $5.26 million and US $6.32 million, respectively; while Guinean and Senegal will each receive US $64.94 million and US $59.66 million in soft loans.

Finally, the Board approved a US $14.4-million grant to help Côte d’Ivoire rebuild its production capacity destroyed during the conflict which affected the country throughout the 2000s. 

The Support to Industrial Competitiveness Enhancement Project (PARCSI) will leverage the competitiveness of (1) industrial sector firms; (ii) associations of fruits and vegetables producers; (iii) companies involved in the fruits and vegetables value chain (suppliers of inputs, packaging, transport, etc.); (iv) provide decent job opportunities to youths and women within the modern Ivorian economy; and (v) strengthen State agencies in charge of supporting the enhancement of the industrial sector’s competitiveness.