DP World Dakar SA

Project Description:

This summary covers an application made by Standard Chartered Bank of the United Kingdom; J.P. Morgan Chase Bank N.A., London Branch of the United Kingdom; Credit Agricole Corporate and Investment Bank of France; and other financial institutions to be identified (together referred to as the Lenders), to cover their non-shareholder loans of up to EUR 290 million (the Loans), to the Government of Senegal (GoS), represented by the Ministry of Finance and Budget (MoF).

MIGA has been requested to provide guarantees of up to 18 years against the risk of Non-Honoring of Sovereign Financial Obligations (NHFSO) covering up to 95% of the GoS’ payment obligations under the Loans and associated interest rate swaps. The MIGA-covered Loans will refinance public expenditures and debts previously contracted to increase Senegal’s shareholding in DP World Dakar S.A (DPWD) from 10% to 40% (the Project). DPWD is the holder of a Concession Agreement for the operations of the northern container terminal of Senegal’s national port, as well as for the development and operation of a container terminal at Senegal’s upcoming new port.

The GoS is proceeding to this ownership increase in recognition of the fact that port activities play an important role in Senegal’s regional connectivity and trade, as well as to capture a better share of the profits generated by said activities.         

Environmental Categorization:

The Project is a Category A under MIGA’s Policy on Environmental and Social Sustainability. Click here for the Project’s Environmental and Social Review Summary.

Development Impact:

The Project will allow the GoS to refinance existing debts on more favorable financial terms, during a time of fiscal constraints and financial markets’ volatility exacerbated by the Covid-19 pandemic and global geopolitical conflicts. The increase in dividend flows to the GoS by virtue of its greater shareholding in DPWD is expected to yield a positive return on investment, demonstrating value for money.

The increased shareholding in DPWD will enable the GoS to consider a subsequent sale of a portion of its shareholding to the local private sector, in line with the country’s 2021 PPP law. The onward sale of shares to Senegal’s domestic private sector could potentially lead to replications for other strategically important public companies in the context of the GoS' ongoing portfolio management exercise for public companies.