Africa Growing Together Fund provides EUR 11 million loan for Support Project for Cotonou Stormwater Drainage Programme (PAPC) (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 the AfDB. Then, on September 25, 2019, the AfDB approved a loan with the Ministry of Finance of Benin for the Support Project for Cotonou Stormwater Drainage Programme (PAPC). The EUR 50 million loan agreement (ID#2000200004555) was signed on November 14, 2019. The loan was expected to carry a 25 year maturity, an 8 year grace period, and an interest rate of the 6-month EURIBOR plus an (unknown) bank financing margin from the AfDB and 80 basis points (0.8%). The loan also carried a 0.25% front-end fee and a commitment fee of 0.25% per year on the undisbursed portion of the loan. Repayments were to be made semi-annually. Then, on August 31, 2020, a loan agreement between AGTF and the Ministry of Finance of Benin for the Support Project for Cotonou Stormwater Drainage Programme (PAPC) was approved by the AfDB. On November 3, 2020, the EUR 11 million loan agreement (ID#5050200001102) was signed by AGTF and the Ministry of Finance of Benin. The borrowing terms for the loan are unknown. The loan went into effect on February 3, 2021 and the final date on which disbursements could be made is December 30, 2025. As of January 9, 2025, EUR 3,968,406.82 (approximately 36.08%) of the loan had been disbursed. The Government of Benin also received the following loans for the project: EUR 40 million from the French Development Agency (AFD), EUR 60.98 million from the West African Development Bank (BOAD), EUR 50 million from the European Investment Bank (EIB), EUR 88 million from the World Bank, and EUR 52.8 million from the Islamic Development Bank (ISDB). The Government of Benin provided EUR 9.65 million in counterpart financing. The purpose of the project is to improve resiliency against flooding in the city of Cotonou. This will be achieved through both the construction and reconstruction of flood-resistant infrastructure, as well as capacity-building and awareness-raising activities. The Support Project will specifically target the 6th district (neighborhoods of Minonkpo, Aïdjedo 1, Gbèdjromedé, Agata, Ahouansori-Agué and Towéta 1) and 10th district (neighborhoods of Vèdoko, Missogbé, Midédji and Yénawa) of Cotonou. Major activities funded through the project include the construction of the 220,500 cubic meter Pa2 retention basin, the construction of 33,140 meters of collectors and gutters for the Pa2 and QaQc basins, and the construction and paving of 12,220 meters of roads associated with the Pa2 and QaQc basins. The project will also involve reconstructing and equipping the Benin School for the Deaf, the Vèdoko 2 Government Primary School, and a community health center. The institutional support and capacity-building elements of the project include support for the Cotonou City Council (including providing waste disposal equipment and garbage bins, as well as training), literacy and vocational training for women and girls, and awareness-raising to reduce flood risks and promote adaptation to climate change. An Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP) were created for the project. A Full Resettlement Action Plan (FRAP) was also created, and 1,766 people affected by the project were to be compensated. The project's official launching ceremony took place on April 21, 2022. The project's originally scheduled completion date was June 29, 2027.