Project detail - MINISTÈRE DE L'ECONOMIE ET DES FINA

MINISTÈRE DE L'ECONOMIE ET DES FINA

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Who is our client

Our client is the Ministry of Economy and Finance of the Republic of Guinea.

Funding objective

The FMO funding will be provided in the form of a buyer’s credit facility to be used to finance ~50% of a design-build construction contract between a Dutch construction company and the Ministry of Public Works of Guinea. The construction contract relates to the construction of 5 bridges with access roads located in Guinea’s capital Conakry (4 bridges) and neighboring prefecture Coyah (1 bridge). The FMO facility will also be used to finance the premium for the credit insurance that Atradius Dutch State Business NV (the Dutch ECA) will provide for this transaction. The remaining ~50% of the construction contract amount shall be funded by a grant from the Dutch Ministry of Foreign Affairs, through its DRIVE facility, managed by RVO.

Why we fund this project

The rationale for funding this Project is: • The transaction supports the development of critical infrastructure in a low-income country. • The transaction aims to support the reduction of inequalities between countries and contributes to economic growth, infrastructure & innovation and partnerships. • With a significant percentage of the construction contract amount being used to source products and services from the Netherlands, the Project has a significant Dutch interest. • The Project is a showcase of how FMO, RVO and Atradius Dutch State Business can combine efforts to support a Dutch company and create impact in places where it is most needed. • High financial and ESG additionality.

Environmental and social rationale

FMO has played an active role in guiding the ESIA process and is providing Capacity Development support in the development of Resettlement Action Plans for the project. The ESIA has shown that all IFC Performance Standards are triggered, except PS7 (no indigenous populations affected by the project) . E&S category is A.

Region
Africa
Country
Guinea
Sector
Infrastructure, Manufacturing and Services
Signing date
5/5/2021
Total FMO financing
EUR 35.49 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A