PPIAF

October 19, 2009

As an affirmation of the groundbreaking nature of the Dakar-Diamniadio Toll Highway (DDTH) project, the Senegalese project was recently selected to be highlighted in the Innovation Days held at World Bank headquarters. The selection of this project, which has been subject to PPIAF technical assistance, confirms the success of the ambitious infrastructure development program established by the Government of Senegal to accelerate economic growth and development. Confronted by growing and competing budgetary needs from different development programs, the Government decided to involve the private sector in the design, financing, and construction of new infrastructure projects such as the Dakar-Diamniadio Toll Highway project.

Background

In 2000, within the context of its infrastructure development strategy, the Government of Senegal established l’Agence nationale chargée de la promotion de l’investissement et des grands travaux (APIX). APIX, in coordination with Government authorities and international institutions, promotes investment in Senegal within the framework of the Presidential Council on Investment. With a mutual focus on eliminating poverty and achieving sustainable development through public-private partnerships (PPPs) in infrastructure. APIX and PPIAF are currently working together on both the toll highway and, more broadly, on strengthening the institutional capacity of APIX.

The transport sector, specifically roads, is a priority infrastructure sector for the Government of Senegal and APIX based on the negative externalities associated with high traffic levels and heavy congestion, which act as significant constraints on economic and social development. The issue is particularly severe in the Dakar region during peak hours. Rapid population growth in Dakar has seen the city grow from 500,000 inhabitants in 1967 to about 2.5 million in 2003, leading to heavy urbanization and the creation of new neighborhoods. Consequently, residential areas have become distanced from working areas, and the increasing demand for transport services between Dakar and the surrounding districts is now unsustainable.

In a 2003 study, the number of vehicles circulating between Dakar and surrounding cities such as Pikine, Colobane, and Thiaroye was estimated at 70,000 vehicles per day. The inadequacy of the current transport system decreases productive work time and constrains economic activity.

Dakar-Diamniadio Toll Highway (DDTH) Project

In order to alleviate Dakar’s congestion problem, the Dakar-Diamniadio toll highway was conceived as a priority requirement in preparation for Dakar’s development as a sub-regional economic center. The DDTH project was conceptualized to decongest Dakar and stretch to the projected business center of Diamniadio, thereby improving accessibility from and to Dakar’s metropolitan area. The ambitious and highly innovative project is the first PPP toll road to be built in Sub-Saharan Africa (excluding South Africa), and will have a significant socio-economic impact on the two million Senegalese who live in Dakar and its surrounding cities.

In 2007 PPIAF approved a $250,000 grant to support the establishment of the institutional and regulatory framework for the project. In particular, technical assistance from PPIAF was requested by APIX to consolidate the institutional framework and procedures for the supervision of the PPP contract.

The design and aims of the Dakar-Diamniadio Toll Highway fit within PPIAF’s strategy to encourage public-private partnerships for the development of priority infrastructures projects in sub-Saharan Africa. PPIAF support was focused on five areas:

1. Design and propose a framework for the oversight of the toll road project reflecting Senegal’s context and institutional characteristics; 
2. Help build consensus on the option or models preferred by the Government, through specific stakeholder seminars; 
3. Propose the operations organization of the administrative structure that will be responsible for the oversight of the highway concession between Dakar and Diamniadio; 
4. Participate in technical and operational capacity building efforts of the entity in charge of the oversight of the highway concession, on the basis of a tailored technical assistance program; 
5. Contribute to a broader reflection on the institutional management of PPPs in Senegal under the direction of APIX

The 32-kilometer toll highway is being developed through 3 phases under a build-operate-transfer (BOT) design for a duration of 25 years. The project is co-financed by the Senegalese Government (US$186 million), the concessionaire, Eiffage Group, (US$110 million); the French Development Agency (US$ 80 million), and the African Development Bank (US$49 million).

World Bank Innovation Days

The selection of the Dakar-Diamniadio Toll Highway project for the World Bank’s innovation showcase came after a stringent selection process. Each regional department had been asked to identify six projects that exemplified innovation in process, approach or product for special prominence in the Innovation Days event on October 14-15, 2009 in Washington, DC.

The specific criteria for selection for the showcase were i) tangible innovation; ii) demonstrated results; and iii) potential for replication in other countries or regions. The Africa Region staff submitted 41 activities to be considered by sector directors. A shortlist was then proposed to the Senior Leadership Team, who made a final decision on the six Africa activities to be showcased.