Africa Growing Together Fund provides EUR 45.5 million loan for Secondary Cities Stormwater Drainage Project (PAPVS) (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 July 17, 2023, AGTF signed an EUR 45.5 million loan agreement [ID#5050200001752] with the Government of Benin for the Secondary Cities Stormwater Drainage Project (PAPVS). On the same day, the African Development Bank (AfDB) signed an EUR 118.75 million loan agreement [ID#2000200006056] with the Government of Benin for the same project. The borrowing terms of these loans are follows: an 25-year maturity, an 8-year grace period, an annual interest rate of EURIBOR plus an 1% margin, a 0.25% commitment fee, and a 0.25% upfront (management) fee. The first disbursements under both loan agreements took place on September 2, 2024. The purpose of the project is to develop stormwater drainage infrastructure in four cities: Porto-Novo, Ouidah, Bohicon and Abomey, with a combined population of around one million. Upon completion, the project is expected to improve the living conditions of the people in the target cities and strengthen their resilience to flooding. It has three components: the first involves stormwater drainage infrastructure and related works, such as the construction of 42.7 km of primary and secondary collectors (large culverts) and 62.3 km of culverts; the asphalting of 18.7 km; and the paving of 16.1 km of roads. It also covers the construction of 72 classrooms, 18 blocks of toilets with 36 hand-washing kits, housing for health workers, four drying sheds for fish smoking, two boreholes equipped with hand pumps, a public square and a public garden. Some 5,521 seedlings will be planted, in addition to the reforestation of 17.22 hectares. The various communities will be sensitized to prevent gender-based violence, including sexual harassment. The second component involves setting up a waste management and facility maintenance mechanism (training, equipment, elimination of existing dumps) that includes a gender dimension, and strengthening flood-risk warning and management system. A water retention basin and a market gardening area will be created. The third component covers project management, monitoring and evaluation. The project will significantly improve hygiene, help reduce water-borne diseases, and increase the enrollment and retention of girls in school. It will also foster employment opportunities. The project’s originally expected commencement and completion dates were July 2023 and December 2027, respectively. However, the project did not officially commence until October 22, 2024.