China Eximbank provides buyer’s credit loan for Ferlo Region Ecosystem Resilience Project (PREFERLO)

Project narrative

In December 2021, Changjiang Institute of Survey, Planning, Design and Research (CISPDR) Corporation began a dialogue with Senegalese representatives about the Ferlo Region Ecosystem Resilience Project (PREFERLO). Additional discussions took place between Senegal’s Ministry of Hydraulics and Sanitation, Senegal’s Office des Lacs et Cours d’Eau (OLAC), CIE, and CISPDR Corporation on March 15, 2022. By that time, the project’s environmental impact assessment (EIA) was completed and approved by the Senegalese authorities and Sinosure had approved a buyer’s credit insurance policy for the project. A project feasibility study was also completed, discussed, and amended. Engineers and technicians from the Chinese and Senegalese sides also conducted site visits to Richard Toll, Keur Momar Sarr and Mboula in the Ferlo area during calendar year 2022. Then, on or around October 16, 2023, China Eximbank signed a buyer’s credit loan agreement -- through an EPC+F arrangement -- worth approximately $265,600,000 (CFA 166 billion) with the Government of Senegal for Phase 1 of the Ferlo Region Ecosystem Resilience Project (PREFERLO). The borrowing terms of the loan are unknown. However, it is known that the loan is backed by a Sinosure credit insurance policy. The purpose of the first phase of the project is to transfer 1.53 billion cubic meters per year of irrigated water from Lac de Guiers (Lake Guiers) to Linguère through a set of canals that measure 115 km in length. The project scope includes (a) dredging and extension of the Taouey canal to Richard Toll to increase the water supply from Lac de Guiers (Lake Guiers) by 20%; (b) dredging, reprofiling and damming of the Bas Ferlo miner over 70 km from Keur Momar Sarr to Mboula; (c) construction of 2 pumping stations in Mboula to serve the 2 canals supplying the Vélingara Ferlo and Dahra areas; (d) construction of an open-air canal, 110 km long, to serve the Vélingara-Ferlo area via Linguère and Barkédji; (e) construction of a second open-air canal, 60 km long, to serve the Dahra area; (f) construction of a 35 MKVA photovoltaic solar power plant to ensure the energy supply of the 2 pumping stations; and (g) construction of artificial lakes, secondary canals to supply production areas, and crossing structures. Changjiang Institute of Survey, Planning, Design and Research (CISPDR) Corporation and CIE are the contractors responsible for Phase 1 implementation. Their work will be supervised by Senegal’s Ministry of Hydraulics and Sanitation through OLAC. On October 31, 2023, a partnership agreement was signed by OLAC and the Yangtze River Commission of the People's Republic of China.