Creation of a wind farm in Ethiopia, access to information technologies in Africa, access to water in Kenya, budget support in Togo, AFD pledges a total of 162 million euros for development at its 13 November 2008 Board of Directors meeting.

Ethiopia: creation of a wind farm

AFD approved the allocation of a 45 million euro loan to Ethiopian Electricity Power Corporation (EEPCo) to finance a 120 MW wind farm.

EEPCo is a public company with the monopoly for electricity production, transport and distribution in Ethiopia where energy demand per capita is one of the lowest in the world (only 6% of the population has direct access to electricity). Consumers also often face repeated power cuts due to under-investment and strong demand mainly from industrial growth and a rise in the number of households connected.

The wind farm will be built in Ashegoda in the Tigray region in northern Ethiopia. It will strengthen the security of electricity supply in the country and reduce its dependence on hydropower. The project, by its size and exemplary nature, is an opportunity for the Ethiopian government and EEPCo to show their commitment to promoting low-carbon energies. It will be implemented by the French company Vergnet which will also subcontract to other French players.

Djibouti: submarine international telecommunications cable

AFD approved the allocation of a 25 million US dollar loan to Djibouti Telecom SA to partially finance its connection to the Europe India Gateway (EIG) submarine international telecommunications cable.

The 17 000km EIG fiber optic submarine cable, with a capacity of 1.280 gigabytes, will supply Asia, Africa and Europe via around ten landing stations between Bombay and London from 2010 onwards and for a 15 to 25 year period. Djibouti will be the only site in Africa to have an interconnection with the East African Submarine System (EASSy), East Africa’s longest submarine telecommunications cable.

Telecommunications and information and communication technologies (ICTs) are instrumental in speeding up economic development, trade, creating wealth and employment and reducing poverty. In addition to domestic needs, the Djiboutian operator will serve the interests of a number of African operators and TeleYemen by providing a technical interconnection between these international telecommunications cables as well as access to the global internet network.

Kenya: water and sanitation in Mombasa

AFD approved the allocation of a 40 million euro loan to the Republic of Kenya to finance a priority phase of the rehabilitation and extension of drinking water and sanitation infrastructure around Mombasa.

The water sector is a priority for the Kenyan government which has set a 100% access rate target for drinking water for the population by 2010. This is a considerable challenge, in particular in terms of the coastal region. The city of Mombasa with a population of 900 000 inhabitants receives hardly more than 55 000 m3 a day with almost 35% wasted, whereas demand is estimated at 135 000 m3. The sanitation service only covers 12% of needs and suffers from a number of problems.

The project will meet indispensable rehabilitation needs and will contribute to strengthening local capacities. It will supply an additional 32 000 m3 of water to populations and will raise water availability from 6 to 12 hours a day. The project will reduce health risks and will help increase the region’s economic activity.

Togo: budget support

AFD approved the allocation of a 2.5 million euro grant to the Republic of Togo to support its budget and subsistence production.

The 2.5 million euros of budget support allocated in June 2008 was used to purchase State-subsidized fertilizer for subsistence crops as a result of Togo’s fragile socio-economic situation and the food crisis. By doubling this aid, again for the purchase of fertilizer, Togo will be able to prepare its next subsistence harvest in the current context of rising food and oil prices.

Real estate and mortgage loan sector in Africa: strengthening Shelter Afrique

AFD approved the allocation of a 10 million euro loan to Shelter Afrique for the development of mortgage loans in several African countries.

Shelter Afrique is a credit institution founded in 1982 by 41 African States to finance real estate development in Africa. It is based in Nairobi and started its activity in Kenya which today accounts for 21% of its commitments. It consequently extended its activity to West Africa and today focuses on a few countries where markets to finance private real estate loans and real estate development remain under-developed.

AFD’s financing will help strengthen Shelter’s technical and management capacities and will support the institution in the development of its activity in mortgage loan markets within its intervention area. Populations will eventually have greater access to safe housing thanks to the extension of financing in the housing sector where the activity of commercial banks remains underdeveloped. This initiative will support the structuring of the real estate sector in Africa and will promote the emergence of large-scale real estate developers and the expertise of banking establishments in the home loan segment.

Surinam: rehabilitating the road linking Paramaribo to French Guiana

AFD approved the allocation of a 25 million euro loan to the Republic of Surinam for the rehabilitation of the road linking the capital Paramaribo to French Guiana.

The project has a total cost of 102 million euros and involves renovating a 137 kilometre road section linking Meerzog, near Paramaribo, to Albina, Surinam’s most eastern city near the border with French Guiana. The main objective is to promote Surinam’s regional integration and implement an economic and social rebalancing in the country’s East region. This will be achieved by providing access to a large agricultural area and reducing transport time and costs.

In addition to road rehabilitation works, AFD’s financing will be used for works supervision, measures to mitigate sexually transmitted diseases and will strengthen administrations directly concerned by this infrastructure.

Agence Française de Développement (AFD), a public institution, has been working to combat poverty and promote the development of South countries within the framework of France’s official development assistance for over 60 years. AFD is active in the field in over 70 countries and Overseas France and finances and supports projects to improve living conditions for populations, boost economic growth and protect the planet: education for children, support for farmers, support for small businesses, water supply, tropical forest preservation, fight against climate change… In 2007 AFD pledged 3.5 billion euros to finance operations in South countries and Overseas France. Thanks to this financing 5.8 million children received schooling and 4 million people gained access to drinking water. Energy efficiency projects for the same year saved 2.7 million tons of CO2 annually. www.afd.fr

Press relations - AFD

Laure Weisgerber, weisgerberl@afd.fr - Tél.: 01.53.44.30.57
Anne-Sophie Morizot (Hopscotch), asmorizot@hopscotch.fr – Tél. : 01.58.65.00.88