| Project Detail |
the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, issued for a period of up to 18 years a Non-Honoring of Sovereign Financial Obligations (NHSFO) guarantee totaling c. US$550 million to Standard Chartered Bank of the United Kingdom, Crédit Agricole Corporate and Investment Bank of France, and JPMorgan Chase Bank National Association, London Branch of the United States, for their non-shareholder loan to the Government of Senegal (GoS), in support of investments in DP World Dakar SA (DPWD), one of the operators of the port of Dakar’s container terminals. The proceeds of the MIGA-backed loan will refinance debt contracted by the GoS to increase its shareholding interest in DPWD.
With more than 700 kilometers of coastline and located at the westernmost point of Africa and the Sahel, Senegal has potential to become an important regional hub linking Africa to the rest of the world. At the crossroads of several important maritime routes, the port of Dakar offers competitive navigation time in West Africa and contributes to strengthening regional integration and trade, with a significant portion of Mali’s imports passing through its facilities.
Environmental Categorization
The project is Category A under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary and Environmental and Social Action Plan.
Development impact
MIGA’s NHSFO guarantee provides sustainable, long-term and cost-effective financing to the GoS, in the context of tightening global and regional financial market conditions. The guarantee will allow the GoS to increase its participation in the port sector, which occupies a vital place in the Senegalese economy given the importance of trade and the country’s strategic location as a gateway to landlocked countries in West Africa. The GoS’ increased ownership will help capture a better share of the port’s financial benefits as its operations continue to grow.
The signing of this, our 1,000th project, demonstrates MIGA’s commitment to its mission of supporting economic growth, reducing poverty, and improving people’s lives by mobilizing cross-border private investment into developing countries. |
