MIGA Supports Senegal’s First Bus Rapid Transit System
Washington, November 22, 2023 – The Multilateral Investment Guarantee Agency of the World Bank (MIGA) has issued guarantees amounting to €19.9 million to Meridiam, an independent investment Benefit Corporation and asset manager specializing in public and community infrastructure, to cover its investments in Dakar Mobilité SA (DM) in Senegal for up to 15 years.
MIGA’s guarantees protect Meridiam against the risks of expropriation, transfer restriction and inconvertibility, war and civil disturbance, and breach of contract for up to 15 years. DM will acquire, operate, and maintain the electric buses that will provide service in Senegal’s first 100% electric Bus Rapid Transit (BRT) system.
The population in Dakar and its surrounding areas is expected to reach 5 million by 2030. To support this growth and facilitate urban mobility, the government of Senegal is building an inclusive, safe, and low-carbon mobility system to serve the population. The country’s first BRT will be integrated with existing public transport services. It will run through Dakar’s busiest and most populous districts. Residents will be connected to businesses, educational and health care facilities, and many other service providers located along the BRT route.
“MIGA’s guarantees facilitated foreign direct investment to support Senegal’s first electric bus rapid transit system. We are pleased that this project will greatly improve the quality of life and accessibility to jobs and services for residents in the Dakar area,” said Hiroshi Matano, MIGA Executive Vice President. “In addition, the operation of the BRT will create employment opportunities for local people.”
The BRT route extends some 18.3 km, from downtown Dakar to 14 municipalities, and is expected to transport more than 300,000 passengers daily. The system is expected to cut travel times from 90 to 45 minutes. Senegal received €280.9 million in 2017 and €66 million this year from the World Bank’s International Development Association and €80 million from the European Investment Bank to build the BRT infrastructure in 2017.
Area residents will enjoy shorter wait times, real-time bus updates, convenient mobile and online payment options, and increased comfort provided by new world-class vehicles. Additionally, the project’s security plan has been designed to reduce harassment and gender-based violence via alert buttons and video monitoring on buses, bus stops, and car parks, and more frequent bus arrivals.
The use of electric buses will improve operational flexibility and significantly reduce operating costs. With the BRT system, Senegal becomes a pioneer in the implementation of a technology that avoids greenhouse emissions. The project is expected to generate 59,000 tons of carbon dioxide equivalent (CO2e) savings every year.
About MIGA
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.
About Meridiam
Meridiam was founded in 2005 by Thierry Déau, with the belief that the alignment of interests between the public and private sector can provide critical solutions to the collective needs of communities. Meridiam is an independent investment Benefit Corporation and asset manager. The firm specializes in the development, financing, and long-term management of sustainable public infrastructure in three core sectors: sustainable mobility, critical public services, and innovative low-carbon solutions.
Contact:
In Washington:
Elizabeth Howton, (202) 458-5922 or ehowton@worldbankgroup.org
For more information, please visit: https://www.miga.org
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