EIB’s fifth credit line (EUR 60 million) to BOAD supports regional projects in energy, industry, transport, agribusiness, tourism and other sectors, with a specific focus on environmentally sustainable projects. Individual projects will be able to borrow up to EUR 5 million under favourable conditions. Private sector projects will be able to access funds at market rates. Public infrastructure projects, with a regional or environmental focus, will be able to benefit from an interest rate subsidy, under regular arrangements to alleviate borrowing costs for Heavily Indebted Poor Countries in the region. The EIB funding will cover 50% of the project costs.
During 2015, the EIB has disbursed more than EUR 21m to support financing four infrastructure projects in the water and sanitation sector in Ivory Coast, Senegal (two projects), and Togo. Prior to this, a total amount of EUR 23.9m had been disbursed to support financing projects in several sectors. This includes EUR 8.9 m to support financing two infrastructure projects in Burkina Faso and in Senegal.
The overarching objective of the EU-AITF TA Operation is to contribute to further vertical and horizontal integration within BOAD’s climate strategy. The TA Operation, as defined in the preliminary study (“BOAD – Phase I”) will contribute to:
(1) Development and implementation of an environmental and social strategy (encompassing climate, environment and social risk management, as well as climate-specific project finance) which will allow BOAD to institutionalize its environmental and social management system.
(2) Development and implementation of tools, processes and operational plans to allow for climate-specific project finance; the evaluation of climate, environmental and social risks; as well as the identification of financing opportunities for climate projects within BOAD’s framework of current projects.
The first studies were finalized in January 2013: analysis of relevant E&S strategy, policies, procedures, and comparison with standards from other IFIs; evaluation of E&S assessment during the entire project assessment cycle of projects financed by BOAD and analysis of TA programs and other climate projects. A consultant has been selected for the second phase, which constitutes the implementation of actions points depicted in phase one. The inception report has been provided in June 2015. The TA is progressing according to the time schedule. Training has been carried out and a communication strategy has been implemented.