French infrastructure group Eiffage has reached financial close on Senegal’s Dakar-Diamniadio toll road, one of West Africa’s first toll road public-private partnership (PPP).
The €230 million PPP project will require Eiffage to build, finance, operate and maintain the 25-kilometre road for a period of 30 years. The Dakar-Diamniadio stretch is the private part of a larger, €419 million road network being developed by Senegal together with the World Bank, the African Development Bank (ADB) and the French Development Agency.
The project closed with €62.5 million in senior and subordinated debt with lead arranger and global coordinator the IFC, part of the World Bank, providing €22.5 million of that amount. The remaining €40 million came from the ADB, Senegalese commercial bank CBAO and the West African Development Bank. The IFC said in a statement that the debt facilities were long-term but did not specify their tenor.
“The private sector has a key role to play in accelerating the development of infrastructure in Africa, and the World Bank Group is committed to helping governments leverage their role,” commented Sanjivi Rajasingham, World Bank transport sector manager for Africa.
Once completed, the Dakar-Diamniadio toll road is expected to cut the average commute to and from Dakar from the current two hours to less than 30 minutes. Presently, over 100,000 vehicles commute to and from Dakar on a daily basis using a single double lane road, the IFC indicated.