The African Development Bank (AfDB) and the West African Development Bank (BOAD) have signed a Memorandum of Understanding (MoU) defining a strategic partnership framework for co-funding the preparation of infrastructure projects from regional public-private partnership (PPP) in Africa, involving at least one WAEMU member state.
As part of this strategic partnership, the AfDB will rely on its Special Fund of the Financing Mechanism for the Preparation of Infrastructure Projects of the New Partnership for Africa’s Development (NEPAD-IPPF). For its part, BOAD will rely on its regional unit for the development of public-private partnership projects (URDPPP).
The two institutions thus intend to cooperate in order to increase the availability of viable regional infrastructure projects in transport, energy, water and information and communication technologies.
The MoU, concluded for a period of five years, covers the identification, selection and prioritization of regional infrastructure projects that can be considered in PPP, the realization of feasibility studies as well as the structuring and support to the transaction. To this end, the two institutions will jointly establish a list of projects that can benefit from co-financing for the preparation and will agree on the project components to be financed, the supervision and supervision of studies as well as the disbursement modalities. For the effective realization of projects, programs and activities related to their area of ​​cooperation, the two parties will cooperate through a range of mechanisms.
The aftermath of the MoU
At the end of the partnership, several results are expected. This involves drawing up a list of regional projects likely to be the subject of joint development under the PPP model; co-financing each year the preparation activities of at least two PPP infrastructure projects, drawn from the list of selected regional projects; capacity building of at least two project promoters or selected executing agencies and the creation and joint management of a database on the financing of PPP infrastructure projects in West Africa. To do this, the ADB and BOAD agree to work in synergy to achieve the objectives of the memorandum of understanding.
This partnership will help the two institutions and the countries of the West African Economic and Monetary Union (UEMOA) to rapidly build up a solid pipeline of prepared, bankable and quality projects of regional infrastructure, as part of the relaunch of investments. in post-Covid-19 infrastructure in the region. Consequently, it will help to accelerate the mobilization of investments in essential infrastructure to fill the financing gap which will worsen following the negative impacts of the pandemic.
Relations between the African Development Bank and the West African Development Bank are governed by a cooperation agreement signed in Abidjan on February 21, 1978, the African Development Bank also being a shareholder and member of the Board of Directors. of BOAD.
