The African Development Bank (AfDB) and the West African Development Bank (WADB) signed on March 1 a memorandum of understanding defining a strategic partnership framework for co-financing the preparation of regional public-private partnership (PPP) infrastructure projects in Africa, involving at least one WAEMU member state. The two institutions were represented respectively by Solomon Quaynor, Vice President in charge of Private Sector, Infrastructure and Industrialization at the AfDB and Serge Ekue, President of the BOAD.
The Memorandum of Understanding, concluded for a period of five years, covers the identification, selection and prioritisation of potential regional infrastructure PPP projects, the conduct of feasibility studies as well as the structuring and support of the transaction. To this end, the two institutions will jointly draw up a list of projects eligible for co-financing for preparation and will agree on the project components to be financed, the supervision of the studies and the disbursement modalities. For the effective implementation of projects, programmes and activities related to their field of cooperation, the parties will cooperate through a range of mechanisms.
Expected results at the end of the partnership
Elaboration of a list of regional projects likely to be jointly developed under the PPP model, co-financing each year of preparation activities for at least two PPP infrastructure projects drawn from the list of selected regional projects, capacity building of at least two selected project promoters or executing agencies, and the joint creation and management of a database on the financing of PPP infrastructure projects in West Africa AfDB and BOAD agree to work in synergy to achieve the objectives of the MoU.
This partnership will help the two institutions and UEMOA countries to rapidly build a strong pipeline of prepared, bankable and quality regional infrastructure projects ready for investment as part of the revival of post-COVID-19 infrastructure investments in the region.
This partnership will help accelerate the mobilization of much needed infrastructure investments to fill the financing gap that will be widened as a result of the negative impacts of the pandemic.
Relations between the AfDB and the BOAD are governed by a cooperation agreement signed in Abidjan on February 21, 1978. The AfDB is also a shareholder and member of the BOAD Board of Directors.
About the West African Development Bank
The West African Development Bank is the development finance institution of the West African Economic and Monetary Union member states. Created in 1973, its shareholders include, to date, the eight member states of the UEMOA, their central bank (the Central Bank of West African States - BCEAO), and several international institutions and non-regional states, including the African Development Bank (AfDB), the European Investment Bank (EIB), KFW, France, Belgium, China, India, and Morocco, etc. It is rated 'Baa1' with a stable outlook by Moody's and 'BBB' with a stable outlook by Fitch. It is headquartered in Lomé, Togo.
About the African Development Bank
In accordance with the Agreement Establishing the African Development Bank (AfDB) signed between its member states on August 4, 1963 in Karthoum, Sudan, the AfDB Group aims to contribute to the economic development and sustainable social progress of its member states individually and socially. To this end, it mobilizes resources to promote investment in these countries and provides them with technical assistance and policy advice.
