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Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature.
 
Project Name DP World Dakar
Guarantee Holder Standard Chartered Bank, DP World
Investor Country United Arab Emirates,United Kingdom
Host Country Senegal
Sector Infrastructure
Gross Exposure ($million) 150
Fiscal Year 2009
Status Proposed
Project Number 7843
Environmental Category B
Date SPG Disclosed November 26, 2008
Project Board Date January 15, 2009
 

This summary covers a proposed investment by Standard Chartered Bank of the UK and DP World of the United Arab Emirates for the Phase 1 upgrade of the Port of Dakar facility in Senegal. The investors have applied for a MIGA guarantee of up to Euro 116.0 million ($150 million) for a period of up to five years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.  The total value of the Phase 1 investment is estimated at Euro 150 million ($193.6 million).

The Port of Dakar lies in Senegal on the west coast of Africa. DP World FZE has been awarded a 25 year (renewable) concession to operate container terminals (“TAC”) 1, 2, and 3 at the existing port and to develop a new container terminal (“Port of the Future”) at an adjoining site. Phase 1 of the project consists of modernizing the above terminal facilities.

Environmental Categorization

The project is a Category B under MIGA’s environmental review procedures.  Click here to view the Environmental and Social Review Summary.

Development Impact

Phase 1 of the project is expected to result in a doubling (by 2010) of container handling capacity from the current 250,000 of twenty foot equivalent unit (“TEUs”) to 550,000 TEUs at the port, achieved via enhanced operational and management efficiencies and investment in additional capital equipment such as gantry, mobile, and RTG cranes. It is expected that this will yield other positive developmental impacts in the form of lowered trade (shipping) costs in general, and greater access to shipping services by the landlocked territories of the region. Moreover, it is aligned with the government’s declared strategy of promoting investments in large scale infrastructure projects to accelerate economic growth. These objectives are outlined in full in the World Bank Group’s country assistance strategy for Senegal.

This proposed project addresses three of MIGA’s priority areas: an investment in an IDA-eligible country, which is among the world’s poorest; an investment in an African country; and a South-South investment.

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