Thanks to support from IFC, Benin and its neighbors will benefit from a new port container terminal that promises to increase trade between landlocked countries in West Africa and the rest of the world.
IFC has announced the signing of a 25-year concession agreement for the South Wharf Container Terminal between Benin and the Groupement Bolloré, led by Bolloré Group of France. IFC advised Benin's government on the bidding process.
The terminal is intended to improve port performance and security, expand capacity, and cut costs. It is expected to significantly reduce delays at the port and help increase opportunities to develop external markets for the agriculture and fishing industries.
In addition to Benin, the port will serve countries such as Burkina Faso, Mali and Niger.
Pascal Koupaki, Benin's minister of Prospective, Development, Evaluation of Public Policies, said, "This signing completes a bidding process that sets a high standard in efficiency and fairness for awarding this public-private partnership concession. We look forward to continued high standards in the port's development that will encourage increased trade and government revenues for Benin.”
Increased Trade and Development
Groupement Bolloré’s proposal included a commitment to pay fees of $200 million over the first eight years of operations, and to invest $256 million in operating equipment and civil works over the life of the concession.
“Benin’s development will require increased trade and investment,” said Yolande Duhem, IFC Director for West and Central Africa. “This signing takes us a further step toward improved port and other infrastructure facilities will create new opportunities for this nation’s people and businesses.”
This port sector reform is also made possible with a $169 million grant from the United States’ Millennium Challenge Corporation (MCC). The MCC funding allows for the construction of the quay wall behind which the container terminal will be constructed.
IFC advised Benin's government with the support of DevCo, a multidonor affiliate program that incorporates the Private Infrastructure Development Group, supported by the U.K.’s Department for International Development; the Dutch Ministry of Foreign Affairs; the Swedish International Development Agency; and the Austrian Development Agency.
For more information contact:
Kimberlee Brown
Communications Officer
Dakar, Senegal
Tel: +221 33 859 7126
Email: kbrown@ifc.org
