Africa Growing Together Fund provides EUR 46.67 million loan for Dakar-Tivaouane-Saint Louis Dual Carriageway Project (Linked to Umbrella Record ID#36104)

Project narrative

On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and administered by AfDB. Then, on November 18, 2022, a EUR 46.67 million loan agreement with the Government of Senegal was approved for the Dakar-Tivaouane-Saint Louis Dual Carriageway Project. On the same day, the African Development Bank (AfDB) approved an EUR 119.69 million loan to the Government of Senegal for the same project. Then, on February 6, 2023, the loan agreements were signed. The borrowing terms of these loans are follows: a 25-year maturity, an 8-year grace period, an interest rate of EURIBOR plus a 1% margin, a 0.25% commitment fee, and a 0.25% upfront (management) fee. Other co-financiers of the project include the Islamic Development Bank (IsDB), the West African Development Bank (BOAD), the OPEC Fund, the Kuwait Fund for Arab Economic Development (KFAED), the Arab Bank for Economic Development in Africa (BADEA), the Saudi Development Fund (SDF), the ECOWAS Bank for Investment and Development (EBID), the private operator, and the Government of Senegal. The purpose of the project is to construct the Dakar-Tivaouane-St. Louis Highway. The project has three components. The first component concerns the construction of a highway and will comprise : (i) construction work on a 2x2 lane, 3.5 meter wide, climate resilient highway expandable to 2x3 lanes over 55 km on private sector financing (section 1) including the construction of 4 interchanges, the development of 32 32 crossings including 14 underpasses and 18 overpasses; (ii) construction work on 2x2 lane, 3.5 meter wide highway extendable to 2x3 lanes over 145 km on public sector financing (section 2) including the construction of 4 interchanges, 81 crossings (68 underpasses and 13 overpasses); (iii) control and supervision of works; and for both sections (iv) environmental and social measures (PGES); (v) climate resilience measures and nature-based solutions; and compliance with the axle load; and (viii) land acquisition and release of rights-of-way (implementation of the resettlement action plan - RAP). The second component aims to amplify the impacts of the project and consists of: (i) the improvement of 50km of rural roads; (ii) the construction of 8 km of urban roads with solar-powered street lighting, including 3 km in Mékhé, 2 km in Guéoul and 3 km in Kébémer; (iii) the construction and/or rehabilitation of solar-powered social and marketing facilities (3 health centers/posts, 3 motor parks and a Gaston Berger Health Sciences Research Laboratory (LARESS); (iv) support for youth and women’s agricultural product processing associations (30 APU, 9 multifunctional platforms, 20 MITs); (v) dunefixing covering 50 Ha in the Louga region; (vi) restoration of degraded plant cover in the agricultural, silvicultural, pastoral and reforestation zones of the Pire and Rao classified forests; (vii) strengthening of the piezometric monitoring system with 14 new piezometers with remote management systems along the road in the Niayes region; (viii)the construction of wet retention basins with small irrigation schemes and 67 ha of market gardening areas and 30 boreholes; (ix) protection of the highway from sand encroachment by planting 200 km of trees in 2x2 rows and support for road safety through the acquisition of 4 medicalized ambulances; (x) control and supervision of integrated facilities; (xi) detailed designs and preparation of BDs for integrated facilities; (xii) support for women and youth employability and (xiii) implementation of environmental, social and climate measures (ESMP and RAP) for the integrated facilities. The third component aims to ensure effective monitoring of the implementation of components 1 and 2 and comprises: (i) assistance to project management who assists AGEROUTE in carrying out technical studies, the concession process and ensures the coordination of the participants in the execution of the works; (ii) monitoring and evaluation of the project’s socio-economic impact; (iii) technical, socioeconomic and environmental studies to prepare future road projects; (iv) ESMP and RAP implementation monitoring; (v) recruitment of 10 specialists to strengthen the Project Management Team (PMT); (vi) technical audit; (vii) road safety audit; (viii) accounting and financial audit; (ix) procurement audit; (x) annual E&S performance/compliance audit including the hygiene safety and environmental audit; (xi) the RAP implementation completion audit; (xii) communication; (xiii) the midterm and final audits of climate and low carbon performance/compliance; (xiv) the organization of a start-up workshop; and (xv) the equipment (vehicles, IT equipment and furniture) and operation of PMT. The project's originally expected commencement and completion dates were May 1, 2023 and December 31, 2027, respectively. Project implementation officially commenced on February 10, 2023.