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World Bank's IFC and Eiffage, a leading European public works and concessions firm, announced on Monday a financing agreement for the extension of the Dakar toll road in Senegal.

This road will connect central Dakar with a new international airport and the nearby rural areas, spurring economic growth, employment and new opportunities that contribute to poverty reduction by facilitating transport between key infrastructure and outlying areas with the capital city.

The existing Dakar toll road was inaugurated in August 2013 by SENAC, the Senegalese concession company set up by Eiffage. As the first greenfield toll road public-private partnership in West Africa, this is widely considered a flagship project for Senegal and the region. The 25 kilometer toll road has markedly improved urban mobility by reducing commute times between central Dakar and its outlying neighborhoods from more than two hours to less than 30 minutes.

IFC acted as the lead arranger and global coordinator of a €76 million debt financing package to SENAC. IFC's own investment in SENAC to finance both the existing Dakar toll road and its expansion will now reach €26 million, including senior and subordinated long-term debt for IFC's own account. An additional €50 million has been mobilized from the Western African Development Bank, the African Development Bank and CBAO, one of the main Senegalese commercial banks.

Bertrand de la Borde, IFC Head for Infrastructure in Africa, said:

"IFC's financing for the Dakar toll road significantly improves urban mobility and eases the daily commute for tens of thousands of people. This new agreement confirms the benefits of collaboration between governments, private sector operators and development institutions to establish the infrastructure projects essential to Africa's development."

The planned 17 kilometer expansion will require approximately €130 million in total new investment in the project carried out by SENAC, through a 25-year concession contract to design, build, operate and maintain the dual carriageway toll road. This expansion will connect the existing motorway to Dakar's new international airport, and to the seaside tourism areas on the coast while streamlining the road link between Dakar and Thiès, Senegal's second most populous city.

Didier Payerne, Effiage Chief Operating Officer, said:

"The secret to the success of the complex Dakar toll road project lies in the effective collaboration and strong relationships between the government, the financiers and the developers. Our new agreement to finance the extension is the result of the strong partnership established on the existing project."

By filling a missing motorway link, this extension is expected to play a significant role for the development of the Senegalese road network. The important transport project supports economic development in line with the objectives of the Emerging Senegal Plan.