Africa Growing Together Fund provides EUR 32.1 million loan for First Libreville Integrated Drinking Water Supply and Sanitation Sub-Programme (PIAEPAL) (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 the administered by AfDB. Then, on February 7, 2019, AGTF signed an EUR 32,170,000 loan agreement (ID#5050200000651) with the Government of Gabon for the First Libreville Integrated Drinking Water Supply and Sanitation Sub-Programme (PIAEPAL). On the same day, the African Development Bank’s African Development Fund issued a EUR 56,070,000 loan (ID#2000200003602) to the Government of Gabon for the same project. The borrowing terms of the AGTF loan are as follows: a 20-year maturity, a 5-year grace period, an interest rate of 6-month EURIBOR plus a 0.8% margin, a 0.25% management fee, and a 0.25% commitment fee. The first AGTF loan disbursement took place on September 17, 2019. However, as of May 2022, the AGTF loan had only achieved a 0.12% disbursement rate (EUR 9,732.58 out of EUR 32,170,000). The project is structured around the following main components: (A) development of DWS infrastructure including: (i) renovation of 149 km of the Libreville water supply network, (ii) reinforcement and extension of 131 km of the Libreville water supply network; and (iii) repair of leakages in administrative buildings; (B) improvement of sector governance and capacity building, including: (i) equipping beneficiary ministries; (ii) training the main stakeholders; (iii) technical studies for infrastructure development and knowledge of water resources; (iv) sector studies and assistance for institutional reform of the sector; and (C) project coordination and management, including: (i) equipment for the Coordination Unit; (ii) technical assistance for project implementation; and (iii) operating costs. The project will cover four Greater Libreville municipalities: Libreville, Akanda, Owendo and Ntoum. Libreville's total population in 2016 was estimated at 967,095. It is expected that 300,000 additional people, or 31% of the city's population, will have access to drinking water as a result of the network extension works. Due to the project, the drinking water access rate for the Libreville urban population is expected to increase from 55% to 90%. In addition to Libreville residents, the project is expected benefit local industries and other production and service structures such as government departments, including the Ministry of Water and Energy, the Ministry of Works, barracks, the Service Company, schools and hospitals. Other expected beneficiaries include economic operators that will execute works and provide services during project implementation. The project has encountered various contracting obstacles during the COVID-19 pandemic. As of January 2022, the project had achieved a 25% completion rate. The project was originally expected to reach completion in December 2022.