International Finance Corporation (IFC), the private investment arm of the World Bank, has inked a financing deal with Eiffage to extend the Dakar toll road in Senegal.
The institution acted as the lead arranger of a €76 million debt package to SENAC, the Senegalese concession company set up by Eiffage. The 25-kilometre motorway, West Africa’s first toll road public-private partnership (PPP), was inaugurated in August 2013.
IFC’s own investment in the asset, which includes both senior and subordinated long-term debt, will now reach €26 million. An additional €50 million has been committed by the Western African Development Bank, the African Development Bank and CBAO, one of Senegal’s largest commercial banks.
“IFC’s financing for the Dakar toll road significantly improves urban mobility and eases the daily commute for tens of thousands of people,” said Bertrand de la Borde, IFC’s head for infrastructure in Africa. “This new agreement confirms the benefits of collaboration between governments, private sector operators and development institutions to establish the infrastructure projects essential to Africa’s development.”
The 17-kilometre expansion will require about €130 million to be invested in the project through a 25-year concession contract to design, build, operate and maintain the dual carriageway toll road.
This expansion will connect the existing motorway to Dakar’s new international airport and to the country’s seaside tourism areas. It also aims to improve connectivity between Dakar and Thiès, Senegal’s second-most populous city.