Active Mixed AidData Chinese Aid

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)

$44M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Africa Growing Together Fund (AGTF)\|Government of Senegal
Country	Senegal
Start Date	Feb 24, 2022
End Date	Dec 03, 2031
Duration	3,569 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`92657`

Grant Description

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

📋 Loan / Grant Terms

💰 Loan Amountare as follows: a 25-year maturity

📅 Maturity25 years

⏳ Grace Period8 years

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

The AfDB project identification number is P-SN-DB0-028.
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%).
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%).
The French project title is la phase I du Programme de désenclavement des zones agricoles et minières (PDZAM-1).

📚 Sources & References

Sénégal : la Banque africaine de développement accorde plus de 161 millions d’euros de prêt pour désenclaver des zones agricoles et minières au nord du pays
Sénégal - Programme to Open up Agricultural and Mining Areas – Phase 1 (PDZAM-1)
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER)
PROGRAMME TO OPEN UP AGRICULTURAL AND MINING AREAS –PHASE 1
EER December 2023
EER November 2024 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.