Diamniadio VRD Urban Pole
This summary covers a proposed investment by Deutsche Bank Aktiengesellschaft of Germany (DB). DB intends, subject to all internal approvals, to provide a non-shareholder loan to the Government of Senegal (GoS) represented by the Ministry of Economy, Cooperation and Planning (MoE) and the Ministry of Finance and Budget (MoF), to support the construction and integrated management of a sanitation and water system and primary road network at the urban pole of Diamniadio, together with various associated infrastructure (the Project). DB has applied for a MIGA guarantee covering up to US$200 million (or equivalent in other currency) of loan principal and future interest for a term of up to 15 years against the risk of Non-Honoring of Sovereign Financial Obligations (NHSFO).
Located 30 kilometers from the capital city Dakar, the Project aims to respond to the rapid urbanization in Senegal and the spatial planning challenges that came with it. The city of Dakar concentrates more than 25% of the population in less than 2% of the country’s surface. The urgency to decongest the city Dakar makes the Project a strategic and priority component in the GoS’ Plan Senegal Emergent (PSE), which aims to promote economic growth through infrastructure development.
If there are any material changes in the Project’s scope from what has been shared with MIGA during the due diligence phase and presented in this review summary, MIGA may update the Environmental and Social Review Summary and Environmental and Social Action Plan as needed. Such information disclosure will be governed by MIGA’s Access to Information Policy.
Based on initial environmental and social information received, the Project has been categorized Environmental Category A according to the MIGA Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary (ESRS) and Environmental and Social Action Plan (ESAP) prepared by MIGA for this Project.
The Project will provide additional infrastructure and public utility services to the city of Diamniado, create new jobs, and help promote Diamniadio as a major economic hub. The Project has potential to attract private sector investment through subsequent commercial and residential real estate developments. The Project is also complementary to other World Bank Group interventions in Senegal, particularly the ones targeting the transportation sector or addressing the rampant congestion in Dakar.
MIGA’s participation in the Project will facilitate compliance with higher environmental and social standards than the local ones, in line with MIGA’s Performance Standards. MIGA’s support for this Project is also consistent with MIGA’s strategic objective of supporting IDA countries and high impact investments channeled through the private sector.