AfDB Signs Financing Agreements With Its Regional Member Countries

15 May 2008
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African Development Bank (Abidjan)
press release

Maputo, Mozambique, 15 May 2008 - Highlights of the 2008 meetings include the admission of Turkey as the 26th Non-regional member of the Bank Group, the signing of an agreement extending the Nigerian Trust Fund (NTF), the second concessional loan window Group.

The Board of Governors (finance and/or economy ministers) representing 78 member countries of the Bank Group also considered and endorsed ongoing reforms at the institution and the Bank's preliminary response to the recommendations of an Independent High Level Panel set up to reflect on the future of the Bank.

Meanwhile, the African Development Bank (AfDB) Group and the Eastern and Southern Africa Trade and Development Bank (PTA Bank) had signed agreements for a line of credit of US$ 50 million and a payable Equity Capital increase of US$ 6.8 million as well as a callable US$ 40.8 million investment in the regional development Bank.

The support to the PTA Bank also includes, a US$ 1 million grant for institutional capacity building provided by the AfDB-managed Fund for African Private Sector Assistance (FAPA), a trust fund established by contributions from the Japanese government.

The agreements, signed by the Vice President in charge of the Private Sector, Infrastructure and Regional Integration of the AfDB Group, Mandla Gantsho, and PTA Bank President, Michael Gondwe, were among several loan and grant agreements of over US$300 million signed on the sidelines of the two-day Annual Meetings of the Bank Group which ended on Thursday, 15 May 2008, in Maputo, Mozambique.

Apart from the PTA Bank, Uganda also signed a loan and grant agreements with a combined value of US$ 93 million for a road support project, while Ghana endorsed similar documents to the tune or US$ 12.89 million to finance a Gender Responsive Skills and Community Development Project. Nigeria signed a loan agreement of US$ 65 million for an African Development Fund-assisted Rural Water and Sanitation Programme to be implemented in Osun and Yobe states.

Seychelles signed an agreement for a grant of $1.47 million from the African Water Facility Special Fund to improve water supply in the three main islands of Seychelles - Mahe, Praslin and La Digue. Burkina Faso also signed an agreement for a grant of US$ 989,000 to finance a sanitation feasibility study in towns on the outskirts of Ouagadougou.

Botswana signed a US$ 763,000 technical assistance grant to finance the country's agricultural sector review programme while Chad and the African Water Facility signed an agreement for a grant of US$ 724,000 to finance the preparation of an inventory of the country's needs regarding water and sanitation programmes.

CONTACT: Felix Njoku - Tel.: +216 71 10 26 12 - E-mail: f.njoku@afdb.org

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