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Overview

Africa Growing Together Fund provides EUR 44 million loan for Programme to Open up Agricultural and Mining Areas – Phase 1 (PDZAM-1) (Linked to Umbrella Record ID#36104)

Commitments (Constant USD, 2023)$43,764,676
Commitment Year•2022Country of Activity•SenegalDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•Other MultisectorFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 24, 2022
End (planned)
Dec 31, 2025
First repayment (originally scheduled)
Feb 22, 2030
Last repayment (originally scheduled)
Feb 18, 2047

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This project will support 482.94 kilometers of roads covering the Kidira-Bakel section (65 kilometers), the Boucle du Riz section (172.44 kilometers), the Louga-Keur Momar Sarr-Richard Toll section (116.27 kilometers), the Orofondé-Matam section in Dandé Mayo Nord (104.23 kilometers), and a 25 kilometer stretch of National Highway No. 2 – RN2 (Thiès-Kébémer). More detailed locational information can be found at: https://www.openstreetmap.org/relation/13049760 and https://www.openstreetmap.org/relation/13067356 and https://www.openstreetmap.org/relation/13006376

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • African Development Bank (AfDB) (ADB) (BAD)

Receiving agencies

Government Agencies

  • Government of Senegal

Intergovernmental Organizations

  • Africa Growing Together Fund (AGTF)

Loan desecription

Africa Growing Together Fund provides EUR 44 million loan for Programme to Open up Agricultural and Mining Areas – Phase 1 (PDZAM-1)

Grace period•8 yearsGrant element•72.6727%Interest rate (t₀)•0.52%Interest type•Variable Interest RateLoan tenor•6-month rateMaturity•25 years

Narrative

Full Description

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 February 24, 2022, AGTF signed a EUR 44 million loan agreement (ID#5050200001352) with the Government of Senegal for the Programme to Open up Agricultural and Mining Areas – Phase 1 (PDZAM-1). On the same day, the African Development Bank (AfDB) issued a EUR 117.62 million loan (ID#2000200005206) to the Government of Senegal for PDZAM-1. The borrowing terms of the AGTF loan are as follows: a 25-year maturity, an 8-year grace period, and an interest rate of 6-month EURIBOR plus a 1% margin, a 0.25% commitment fee, and a 0.25% upfront (management) fee. The conditions precedent to loan effectiveness were met on October 5, 2022. The first disbursement conditions were deemed satisfactory and approved for both loans on January 20, 2023. The AGTF loan had achieved a disbursement rate of 5.2% as of October 2024. PDZAM involves 786.20 kilometers of roads to be developed and/or rehabilitated and will be financed in several phases. Phase 1 will concern 482.94 kilometers of roads covering the Kidira-Bakel section (65 kilometers), the Boucle du Riz section (172.44 kilometers), the Louga-Keur Momar Sarr-Richard Toll section (116.27 kilometers), the Orofondé-Matam section in Dandé Mayo Nord (104.23 kilometers), and a 25 kilometer stretch of National Highway No. 2 – RN2 (Thiès-Kébémer). The implementation of this program will contribute to developing and unlocking the economic potential of Senegal’s northern regions by reducing transport costs. The project’s first phase has commenced and it is expected to be implemented over a period of 4 years (with a completion date of December 31, 2025). The projects carries numerous environmental and social risks, including loss of biodiversity, farmland, and houses. Several action plans are necessarily implemented for this project, addressing the negative impacts to nature (ESIA, ESMP, BAP) as well as people (RAP, SEP).

Staff comments

1. The AfDB project identification number is P-SN-DB0-028. 2. The loan's all-in interest rate (.524%) -- at the time it was issued -- was calculated by adding 1% margin to average 6-month EURIBOR in February 2022 (-0.476%). 3. The margin of 1% was estimated by adding the Funding Cost Margin (unknown) to the Lending Spread (0.8%) and the Maturity Premium (0.2%). 4. The French project title is la phase I du Programme de désenclavement des zones agricoles et minières (PDZAM-1).