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FEATURE STORY

The Public and Private Sectors Join Forces to Fund Infrastructure in Senegal

July 7, 2015


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STORY HIGHLIGHTS
  • The Dakar-Diamniadio toll road is the first highway funded under a Public-Private Partnership (PPP) arrangement in Sub-Saharan Africa.
  • An innovative financing mechanism, the PPP is a driver of infrastructure development that combines the strengths of both the public and private sectors.
  • Annual infrastructure needs in Sub-Saharan Africa are estimated at $93 billion over a ten-year period, or 15% of Africa’s GDP.

DAKAR, June 22, 2015 — For years, travel to and from the Senegalese capital was disrupted by bottlenecks, leading to traffic jams that could last anywhere from one to four hours. The peninsula of Dakar, where 80% of the economic activity is concentrated and 25% of the country’s population lives, faced critical congestion issues stemming from inadequate road infrastructure that inhibited the smooth flow of traffic, persons, and goods.

In 2013, the Dakar-Diamniadio toll road transformed the urban landscape in record time, providing a major socioeconomic boost to more than two million Senegalese. At the heart of this successful project lies an innovative financing model—a public-private partnership (PPP)—employed for the first time in West Africa to fund a highway. 



" Leveraging PPPs for infrastructure development enables the public and private sectors to join forces and create innovative solutions to current challenges "

Fatouma Ibrahima

Public-Private Infrastructure Advisory Facility (PPIAF) Regional Manager for West and Central Africa


The annual infrastructure needs of Sub-Saharan Africa are estimated at $93 billion over a ten-year period, a figure equivalent to 15% of Africa’s GDP. “Bearing in mind the shortage of public resources, private sector participation offers an alternative source of infrastructure funding. Leveraging PPPs for infrastructure development enables the public and private sectors to join forces and create innovative solutions to current challenges,” explains Fatouma Ibrahima, the Public-Private Infrastructure Advisory Facility (PPIAF) Regional Manager for West and Central Africa.

The Public-Private Infrastructure Advisory Facility (PPIAF) provides technical assistance to governments to help create an environment conducive to the provision of private services. In Senegal, PPIAF’s support played a decisive role in the financing and execution of the Dakar-Diamniadio highway project.

From May 20-22, 2015, the PPIAF held its annual meetings with donors, providing an opportunity for them to reaffirm their support for the PPIAF and to assess the facility’s achievements during FY2015. The meetings were also a forum to discuss PPIAF’s governance, intervention strategy, and activity program for FY2016. With the recent reopening of the regional PPIAF office in Dakar, the facility seeks to expand its activities in Sub-Saharan Africa and its presence in West Africa in particular.

In the margins of these meetings, PPIAF organized a round table with its partners and the entities responsible for infrastructure development in Senegal and the sub-region.  Chaired by the Minister for the Promotion of Investments, Partnerships, and the Development of State Teleservices, Khoudia Mbaye, the round table provided a forum for government representatives, the Dakar mayoral office, specialized agencies and organizations, regulatory commissions, and the private sector to share their experiences and the main challenges related to the development of PPPs in Senegal.

The partners underscored the need to improve the legal framework and the establishment of appropriate institutional processes, capacity-building (particularly in the areas of the analysis and preparation of financial packages for PPP projects), contract negotiation, and the supervision of operator performance.

The PPIAF recently launched an initiative aimed at assisting the Government of Senegal with the development and improvement of its PPP program. Through its advisory services, it will help Senegalese government ministries, departments, and agencies with the identification and preparation of PPP projects and lend support to institutions as they implement PPP projects.

The PPIAF also plans to strengthen its partnership with the Government of Senegal in order to develop new PPPs in the country.  To this end, it will engage in ongoing dialogue with Senegal’s main partners and in particular with the PPP unit, so as to participate in the execution of PPP infrastructure projects in four key sectors: energy, transport, water, and information and communication technologies (ICT).


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