Benin and the Islamic Development Bank signed two co-financing agreements totalling 326.06 million euros on Monday, 12 October, in Bangkok. The funds will mainly upgrade the Godomey-Ouidah-Hillacondji route and support farming systems based on legumes.
The largest envelope amounts to 306.89 million euros for a road project with an estimated total cost of 576.06 million euros. The Islamic Development Bank says the works are intended to increase the road's capacity, improve safety and reduce transport times and costs on this section of the Abidjan-Lagos corridor.
The second agreement covers 19.17 million euros for an agricultural programme estimated at 20.70 million euros. It is intended to promote legume crops that can improve soil fertility, food security and resilience to climate shocks across five development hubs.
The road financing concerns a strategic route for Benin's trade with Togo and other coastal West African economies. Documents published in September by the African Development Bank describe, in particular, the dualling of the Ouidah-Hillacondji road, service roads between Godomey and Ouidah, access roads to tourist sites and a truck park at the border.
For transporters and businesses, the economic impact will depend on the timing of the works, the continuity of traffic during construction and coordination with other sections of the corridor. The Islamic Development Bank did not specify in its statement the interest rate, maturity, grace period or disbursement schedule for either agreement.
The signings took place on the sidelines of the annual meetings of the IMF and World Bank in Thailand. They are co-financing commitments, not confirmation that the full amounts have already been disbursed.