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Paris, France & Dakar, Senegal, November 15, 2010
—IFC, a member of the World Bank Group, and Eiffage, a leading European construction and concessions company, announced today the signing of the financing of the Dakar-Diamniadio toll road connecting Senegal’s capital city and the rest of the country. This toll road will dramatically reduce the burden to tens of thousands of local commuters and greatly improve access to markets for businesses.
IFC served as the lead arranger and global coordinator for this landmark €230 million toll road project, a 30-year concession, won by Eiffage, to build, finance, operate and maintain a 25 kilometer toll road from Dakar to Diamniadio. IFC provided €22.5 million in senior and subordinated long-term debt facilities alongside an additional €40 million of long-term financing from the West African Development Bank, the African Development Bank and CBAO, a leading Senegalese commercial bank.
The Dakar-Diamniadio Toll Road Project is the private component of a larger €419 million Public Private Partnership led by the World Bank with the support of the African Development Bank and the French Development Agency. The World Bank played a key role in the structuring of this toll road concession which is the first of its kind in West Africa. This partnership also supports an integrated urban development plan to upgrade and restructure the impoverished Pikine neighborhood located on the outskirts of Dakar.
“The private sector has a key role to play in accelerating the development of infrastructure in Africa, and the World Bank Group is committed to helping governments leverage their role for the benefit of citizens”, said Sanjivi Rajasingham, World Bank Transport Sector Manager for the Africa Region.
“The development of this toll road exemplifies the potential of Public Private Partnerships and cooperation between governments, financial development institutions and the private sector, working together to create sustainable and innovative solutions to meet Africa’s infrastructure needs,” said Bertrand de la Borde, IFC Manager for Infrastructure in Africa.
“We are very pleased to finalize the financing of this innovative project and fully appreciate the Global Coordinator role played by IFC and overall, the strong commitment of all lenders supporting Eiffage. This public private partnership further cements the long-term partnership between Eiffage and the Republic of Senegal,” said Max Roche, Chief Financial Officer of Eiffage Group.
Currently, over 100,000 vehicles enter and exit Dakar on a daily basis using a single double lane road, leading to severe traffic congestion affecting the movement of goods and people. The Dakar-Diamniadio toll road is expected to cut the average commute to and from Dakar from 2 hours to less than 30 minutes. It will likewise contribute to an upgrade of Dakar’s road infrastructure creating a new and efficient gateway to the country’s economic center directly supporting Senegal’s economic growth objectives.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About Eiffage
Eiffage is a leading figure in the European concessions and public works sector, operating through five business lines: Concessions and public-private partnerships, Construction, Public works, Energy, and Metal. These interlocking areas of expertise enable the Group to tackle ambitious projects such as the Millau viaduct, and Lille Métropole stadium,. Other projects illustrating the Group’s scope of activity include the A65 Pau-Langon motorway, the Southern Paris Region hospital centre and the national police headquarters. The combined experience of more than 70,000 employees helped Eiffage to generate revenues of more than €13 billion, of which 15 percent from international projects in around fifteen, mainly European, countries. Some 85 percent of Eiffage employees in France are also Group shareholders. For more information about Eiffage, please visit:
www.eiffage.com
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