Investments in Guadeloupe and French Polynesia, port renovation in French Guiana and Mayotte, equity investment and urban development on Reunion island, AFD pledges over 150 million euros in Overseas France at its Overseas France Committee meeting on 17 December and its Board of Directors meeting on 18 December 2008.

AFD operates in France’s Overseas local authorities in its traditional capacity as a financial institution when financing requests are made by the relevant authorities. The guidelines for AFD’s general policy are defined in close cooperation with the French Secretariat for Overseas France, which is one of the State representatives on AFD’s Overseas France Committee and Board of Directors.

The following decisions were taken during the proceedings of the 17 December Overseas France Committee meeting and the 18 December Board of Directors meeting:

Guadeloupe: investments in Sainte-Anne

AFD approved the allocation of a 12 million euro loan to Sainte-Anne municipality to finance its 2006-2013 pluriannual investment program.

Sainte-Anne, with almost 30 000 inhabitants, is experiencing strong demographic growth. The municipality has a strong rural identity, yet it enjoys considerable potential for tourist development thanks to its coastline where the beaches are protected by a coral reef. The municipality has been implementing a development strategy for several years, within the framework of a development project that covers economic development, promoting employment and integrating people in difficulty, protecting and managing the environment, organizing means of transport and implementing equipment and infrastructure for education, culture and sport.

This program will improve the local environment for populations and will upgrade public infrastructure and equipment. Its impacts on the local environment will be essential to this fast-growing municipality.

Guadeloupe: investments in Baie-Mahault

AFD approved the allocation of a 15 million euro loan to the municipality of Baie-Mahault to finance its 2009-2014 pluriannual investment program.

Baie-Mahault, with a population of 30 000 inhabitants, is one of the most active municipalities in the Department thanks to the extension of the Guadeloupe Autonomous Port on its territory and the development of the Jarry industrial and commercial estate. The local authority’s development program is to be scaled up in the coming years; the fiscal year 2009 will bear the bulk of the investment effort. The program is based on five main areas: (i) to support economic development around Jarry, (ii) to boost the city center, (iii) to develop the natural heritage, (iv) to improve the local environment and (v) education.

These projects will consolidate the municipality’s position as an important economic hub. They will also help create a harmonious municipal space and will improve the local environment for populations.

French Guiana: port renovation

AFD approved the allocation of a 14.7 million euro loan to the Guiana Chamber of Commerce and Industry (CCIG) to rehabilitate quay N°1 on Dégrad-des-Cannes port.

The Dégrad-des-Cannes deepwater port deals with over 90% of the Department’s maritime trade and is vital to French Guiana’s economy. The company is managed by the CCIG which has a concession to operate the equipment. An investment program was designed to modernize infrastructure, some of which dates back to over 30 years ago. Thanks to this financing, the CCIG will have the technical support and financing required to rehabilitate quay N°1 which has been closed to handling since 2002 when part of the roof decking collapsed. The rehabilitation will increase freight at the port from its current level of 619 000 tons 718 000 tons in 2013.

Reunion Island: creation of an equity investment mechanism

AFD approved a 6 million euro equity investment for the creation of the Risk Mutual Fund that aims to strengthen the equity of Reunion’s VSEs and SMEs.

Reunion’s company failure rate is higher than in Metropolitan France and companies need to strengthen their equity in order to develop. An equity investment mechanism has consequently been designed and includes a Risk Mutual Fund and a portfolio management company. A support and supervision system for companies has also been planned. The mechanism has been designed in close partnership with the Regional Council and has a 36 million euro investment capacity target. It will mobilize resources from institutional and private actors, particularly local banks. The project will help increase companies’ investment and development capacities and will give them easier access to credit. It will consequently help create jobs and secure long-term employment in Reunion.

Reunion Island: urban development and respecting the environment

AFD approved the allocation of a total of 10.6 million euros of financing to SIDR, the Reunion real estate company, and Ville du Port for the implementation of urban development programs and social housing improvement with high added value for the environment.

Operation “Le Mail de l’Océan” will be implemented as part of the Ville du Port Urban Renewal Plan. It is the last stage in opening the city to the sea which involves reorganizing the urban fabric. The operation comprises 410 new dwellings including 120 in the private sector (for first-time buyers). The housing program is diversified in order to promote a social and functional mix. SIDR will implement two social (76 dwellings) and intermediate (76 dwellings) programs in compliance with the “PERENE” label defined by ADEME, the French Environment and Energy Management Agency, that aims to ensure constructions have optimal thermal and solar comfort. SIDR will also equip its social housing patrimony in Ville du Port with solar water heaters.

This financing will improve living conditions for the inhabitants and will minimize the environmental impacts of urban development. It is part of the GERRI program that aims to make Reunion Island a model in terms of energy efficiency.

Mayotte: port investment

AFD approved the allocation of a 10 million euro loan to the Departmental Local Authority of Mayotte for the extension of Longoni port.

The Departmental Local Authority of Mayotte (CDM) is currently in a transition phase as it will be changing status to become a Department. Mayotte is lagging in all sectors in comparison with Metropolitan France and Overseas France. This stems from the low level of qualification of the population, limited markets and shortcomings in infrastructure and public equipment. The public authorities wish to undertake a catching up process and integrate Mayotte better into the region. AFD’s funding will complete the financing for port Longoni’s second quay. The old quay has now reached saturation point due to a sharp increase in maritime freight. The project will help open up Mayotte and will contribute to its economic development.

French Polynesia: investments in transport, development, environment and health

AFD approved the allocation of a total of 30 million euros of financing to French Polynesia to finance investments on its 2008 general budget (20 million euros) and its health program in the form of pluriannual financing (10 million euros).

The financing of the health program marks an important change in AFD’s financing policy for French Polynesia. It aims (i) to give priority to financing sectoral programs (in order to promote the construction of public policies based on sustainable development issues) and (ii) to earmark annual budget financing for the local authority’s financial needs and to pursue dialogue on cross-cutting issues (public finance management and the integration of environmental issues).

French Polynesia gathers a population of 260 000 inhabitants over a scattered area of 3 521 km². This “Overseas country” has enjoyed a widely autonomous status since the 27 February 2004 laws. The Local Authority of French Polynesia is a major actor in the economic and social balancing policy for the archipelagos and is leading a strong investment policy in the sectors of health, education and road and port infrastructure. The project contract signed in May 2008 for the period 2008-2013 provides for 440 million euros of investment. AFD’s financing will be allocated partly for transport infrastructure, development and the environment and partly for health program investments under the project contract.

French Polynesia: financing the activity of Socredo

AFD approved the allocation of 52 million euros of financing (30 million euro line of refinancing and 22 million euro first-demand guarantee for the implementation of a discount line) to Socredo to finance its activity.

Socredo is French Polynesia’s biggest commercial bank. It has the status of a semi-public company with 50% of its capital held by French Polynesia, 35% by AFD and 15% by the bank BRED. Its statutes and shareholding give it a special role in the economic and social development of the Polynesian islands. The bank makes a decisive contribution to the development of several structuring industries, such as tourism, pearl farming, fishing and inter-island maritime transport. Socredo has the biggest network in Polynesia with 26 branches. It has consequently helped to open up the archipelagos and to promote the use of banking services by the bulk of the population. Socredo provides general banking services and has the same range of products and services as a classic bank for all client segments.

Agence Française de Développement (AFD) is a public establishment with a mission of general interest: financing for development. It finances projects to reduce poverty, support economic growth and preserve the environment on the five continents and in France’s Overseas Local Authorities. These projects can be led by local public authorities, public companies, the private sector or associations. In 2007 Group commitments (AFD and Proparco its subsidiary specialized in financing and promoting the private sector) totaled 771.3 million euros in Overseas France (out of a total of 3.5 billion euros) and were allocated to its three intervention areas: support for public policies, SME financing and promoting sustainable development. 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