Riviera Marcory Bridge
|Signing Date||July 6th, 2016|
|Total Project Cost||Euro 288M|
|ICF Debt Pool Exposure||Euro 20M|
|IFI Exposure||Euro 120M|
The project funded the construction of a 1.5 km-long toll bridge (with a theoretical capacity of 140,000 vehicles per day) over the Ebrié lagoon as well as 5.2 km of highway and access roads in Abidjan, Côte-d’Ivoire. The Project linked Cocody on the north side to Marcory on the south side, two major neighborhoods in Abidjan. The new bridge will also facilitate access to the port and to the airport of Abidjan, both vital to the economic health of the country.
This was a secondary transaction for the ICF Debt Pool. Original Senior debt of €135.6 M included participations by AfDB, Banque Ouest Africaine de Développement, Banque d'investissement et de développement de la CEDEAO, Banque Marocaine du Commerce Extérieur, FMO and Africa Finance Corporation. Financial close took place on June 28, 2012.
Proceeds from the loan were used to build a) 1.5 km-long 2x3 lanes toll bridge over the Ebrié lagoon; b) 3.0 km of 2x2-lanes on the North Section; and c) 2.1 km of 2x3-lanes on the South Section.
Compelling market opportunity: Abidjan has over 5 million people with two existing bridges over the lagoon which has left inhabitants to cope with a rapidly increasing traffic volume. The new bridge is critically needed to ease road congestion in the city and improve access to both the sea and air ports, two strategic gateways for the country.
Experienced Sponsors: Sponsor has track record in development and operation of infrastructure projects operating a large number of toll road concessions in a number of countries around the world.
Supportive environment: The government does provide a minimum revenue guarantee, which in effect covers both traffic and toll levels as the government decided to implement lower toll levels than projected in the initial financing.
Net Job Creation - Direct job creation is estimated at 1500 during construction and 170 during operation, of which 85 females.
Mobilization of Local Capital - The Project will send a positive signal to the private investors’ community as it will be the largest private sector project to be implemented in the country since 2000.
Increased Government Revenue - The Government’s income from the bridge come from three sources: i) Concession profit sharing ii) dividends and iii) corporate taxes. The total amount of Government income is over EUR 1 billion over 30 years.
Reduction in Transaction Costs - The economic benefits from the project include savings in time, fuel, road and vehicle maintenance costs as well as the relief of traffic congestion on the two existing bridges.
Carbon Offsets - By providing a direct link between the southern and northern sides of the Ébrié lagoon, the new bridge will substantially shorten the travel routes and generate positive environmental and climate change benefits (i.e. particularly through a reduction of atmospheric contamination).
Given the country risk, very few institutions had any appetite or limits available to take on Côte d’Ivoire risk with a tenor of 15 years. ICF Debt Pool funding served to fill the gap and complemented existing IFI/DFI funding.