The European Investment Bank (EIB) has signed a new financing agreement with the government of Senegal to support post-COVID-19 recovery. The $135 Million USD financing will be applied to improve access to drinking water and waste management in several smaller towns in Senegal.
The new financing is part of a larger ($22 Billion USD) comprehensive recovery plan that targets key sectors in the economy that focus on providing “abundant, high-quality and resilient” structures to deliver inclusive health and education and to strengthen social protection and offer digital transformation.
The larger initiative will run through 2023, with the aim to accelerate recovery and to stimulate GDP growth.
EIB’s financing will go to strengthen drinking water supply in three smaller cities. It will offer new access to drinking water to over 600,000 people. EIB’s focus will help to support the government’s effort to “balance” its development efforts, to reduce geographical disparity and ensure regional equity. In addition, the financing supports Senegal’s efforts to make its cities more sustainable and resilient in the face of rapid urbanisation and demographic pressure.
EIB will also co-finance projects to improve waste management in light of the COVID-19 pandemic. The partners in this portion are the World Bank, the Spanish Agency for International Development Cooperation (AECID) and the French Development Agency (AFD).
The COVID-19 project will benefit about 3 million people. It part of the country’s “zero waste” programme and is expected to produce ancillary benefits such as less air pollution, soil and river improvement. There is expected to be a knock-on economic effect in improved fishing and tourism sectors.
Both projects are designed to strengthen the country’s resilience to the ongoing pandemic and to offer resilience in the future, particularly for vulnerable populations in suburban areas.
“The long-standing partnership between Senegal and the EIB spanning more than 55 years has secured long-term investment that is helping to improve lives and increase economic opportunities across our country. We know that we can count on the EIB’s support to implement the government’s priorities for the second phase of the Emerging Senegal Plan. In particular, we would like to thank the EIB for the emergency operational measures it has taken in response to the COVID-19 crisis. The Bank’s additional funding has enabled the government to free up the financing capacity it needs in this pandemic situation,” said Amadou Hott, Minister of the Economy, Planning and Cooperation.
“Within the framework of the emergency operational measures adopted by the Bank in the context of the pandemic, the EIB will exceptionally finance 90% of the project costs, as opposed to the standard maximum of 50%,” commented Werner Hoyer, head of EIB.