Active Development AidData Chinese Aid

Africa Growing Together Fund provides EUR 43.19 million loan for Kérou-Banikoara Section of Djougou-Péhunco-Kérou-Banikoara Road Project (Linked to Umbrella Record ID#36104)

$43.19M USD

Funder	People's Bank of China (PBC)
Recipient Organization	Government of Benin
Country	Benin
Start Date	Jan 18, 2019
End Date	Oct 02, 2032
Duration	5,006 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`91641`

Grant Description

Africa Growing Together Fund provides EUR 43.19 million loan for Kérou-Banikoara Section of Djougou-Péhunco-Kérou-Banikoara Road Project 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 the administered by AfDB.

Then, on January 18, 2019, AGTF signed an EUR 43.19 million loan agreement (ID#5050200000601) with the Government of Benin for the Kérou-Banikoara Section of the Djougou-Péhunco-Kérou-Banikoara Road Project.

On the same day, the African Development Bank (AfDB) issued an EUR 119.93 million loan (ID#2000200003551) to the Government of Benin for the same project.

📋 Loan / Grant Terms

📅 Maturity25 years

⏳ Grace Period8 years

The purpose of the project is upgrade and tar the 64.26 km Kérou-Banikoara section of the Djougou-Péhunco-Kérou-Banikoara Road (or ‘Cotton Road’). The 64.26 km road section is divided into 2 lots (a 41 km lot and a 23.26 km lot).

The 41 km lot is being financed by AGTF and AfDB and the 23.26 km lot is being financed by BOAD and the Government of Benin. This modern earth road is in a very poor state. Its geometric and structural features are not appropriate for traffic and the rainfall and topographic environment. The purpose of the project is, therefore, to improve the level of service of the road.

The expected outcomes of upgrading and tarring the road are increase in traffic and trade, reduction in generalized transportation costs and improvement of the living conditions of the population along the road.

The reduction in generalized transportation costs on the road will lead to a fall in the cost of production and export of cotton, Benin’s main export crop, and, hence, an improvement in the country’s competitiveness.

The expected project beneficiaries are transport service users and the municipalities of Djougou, Péhunco, Kérou and Banikoara. Sinohydro Corporation Ltd. is the contractor responsible for implementation. The project’s environmental categorization was established on November 17, 2015.

The project’s Environmental and Social Impact Assessment (ESIA) and the Full Resettlement Plan (FRP) were updated in April 2018 and approved through the issuance of a compliance certificate on July 31, 2018. Project implementation officially commenced on October 28, 2021.

📋 Staff Comments

The AfDB project identification number is P-BJ-DB0-017.
This project is also known as the Djougou-Pehunco-Kerou-PK 183+980 (183.98 km) Road Project and the 209.68 km Djougou-Péhunco-Kérou-Banikoara Road Project. The French project title is travaux d'aménagement et de bitumage de la route Djougou-Péhunco-Kérou-Banikoara (section PK 184-Banikoara).
The total project cost is EUR 195.32 million. The project was financed with an EUR 119.93 million AfDB loan, an EUR 43.19 million AGTF loan, an EUR 9.41 million EU-AITF loan, an CFAF 10,000.00 million BOAD loan, and funding from the Government of Benin.
The Djougou-Péhunco-Kérou-Banikoara road starts from Djougou, the headquarters of Djougou municipality in Donga Division, crosses Péhunco and Kérou municipalities in Atacora Department, and ends in Banikoara, the headquarters of Banikoara municipality in Alibori Division.
An economic analysis was carried out based on the HDM IV model entailing a cost-benefit analysis between the “with project” and “without project” situations over a twenty-year period, and a 12% discount rate. The analysis showed economic rates of return (ERR) by road section ranging from 14.60% to 21.20% and an average net present value (NPV) of CFAF 38.82 billion.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.
The margin of 1.0% is calculated by adding the Funding Cost Margin (unknown) to the Loan Margin (0.8%) and Maturity Bonus (0.2%).
The AGTF loan agreement can be accessed in its entirety via https://www.dropbox.com/s/littkhgv9bjaw2j/0192584001559137801.pdf?dl=0.

📚 Sources & References

ACCORD DE PR-ET Es-TRE LA REPUBLIQUE DU BENIN ET LA BANQUE AFRICAINE DE DÉVELOPPEI\,IENT (PROJET D'AMENAGEN{ENT DE LA ROUTE COTONNIERE DJOUGOU. PEHUNCO-KEROU-BANIKOARA)
Approbation d’accords de prêt par la BAD et la Chine: 212 kms de route pour Djougou - Péhunco – Kérou – Banikoara
China's Sinohydro sweeps the board on Djougou-Banikoara road contract
Cotonou retains Sinohydro for €93 million cotton roads backbone project
DJOUGOU-PEHUNCO-KEROU-BANIKOARA COTTON ROADDEVELOPMENT PROJECT APPRAISAL REPORT
Lancement des travaux de la route Djougou-Péhunco-Kérou-Banikoara; et Béroubouay-Kandi-Malanville
Le Bénin décroche deux accords de prêt de la BAD et de la Chine pour le bitumage de 212 km de route
LOt N' 20',1 9 - 19 DU 05 AVRIL 2019
PPEL D’OFFRES INTERNATIONAL: TRAVAUX D'AMENAGEMENT ET DE BITUMAGE DE LA ROUTE DJOUGOU-PEHUNCO-KEROU-BANIKOARA: SECTION DJOUGOU-PEHUNCO-KEROU-183+980Date de publication05 février 2020Pays :BENINAgence d’exécution :Direction Générale des Infrastructures (DGI)Nom du Projet :PROJET D'AMENAGEMENTET DE BITUMAGE DE LA ROUTE DJOUGOU-PEHUNCO-KEROU-BANIKOARA: SECTION DJOUGOU-PEHUNCO-KEROU-183+980(Code SAP: P-BJ-DB0-17)Numéro de Prêt :Prêt BAD N° 2000200003551 du18 janvier 2019Prêt AGTF N°5050200000601 du18 janvier 2019Don EU-AITFNom de l’appel d’Offres:TRAVAUX D'AMENAGEMENT ET DE BITUMAGE DE LA ROUTE DJOUGOU-PEHUNCO-KEROU-BANIKOARA: SECTION DJOUGOU-PEHUNCO-KEROU-183+980Numéro et nom du lot :Trois (03) lots:LOT 1 : Section Djougou-Péhunco long de 72,478 kmLOT 2 : Section Péhunco-Kérou long de 72,940 km;LOT 3 : Section Kérou-PK 183+980 long de 38,560 kmMéthode d’acquisition :Appel d’OffresOuvert International (AOI)Préférence nationale (Oui ou Non) :NonPréférence régionale (Oui ou Non):NonNuméro d’appel d’Offres de l’Emprunteur : AOI N°0224/PRMP/MIT/DGI/DTN/CSEPR-BAD/SMT/S-PRMPDate de réception par la Banque du projet de DAO : 18/03/2019Date d’approbation par la Banque du DAO : 18/12/2019Date d’émission du DAO : 04/02/2020Date limite de remise des offres : 16/06/2020Date d’ouverture des offres : 16/06/2020Date de réception par la Banque de la dernière version durapport d’évaluation des offres : 29/03/2021Date d’approbation parla Banque de l’évaluation : Lot1: 26/04/2021Lot 2 & 3: 15/03/2021FRATERNITE –JUSTICE–TRAVAIL
PROJET D’AMENAGEMENT DE LA ROUTE COTONNIERE DJOUGOUPEHUNCO-KEROU-BANIKOARA
PROJET D’AMENAGEMENT ET DE BITUMAGE DE LA ROUTE DJOUGOU-PEHUNCOKEROU-BANIKOARA : SECTION DJOUGOU-PEHUNCO-KEROU-PK 183+980 (183,980 KM)
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Apr 2024
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Dec 2019
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Dec 2021
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Jun 2021
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Jun 2022
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - May 2020
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Nov 2022
RAPPORT SUR L’ETAT D’EXECUTION ET SUR LES RESULTATS (EER) - Oct 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.