GUINEA-BISSAU TAH-7 RESILIENT ROAD CORRIDOR

The project will finance the rehabilitation and climate change resilience enhancement of the N2 highway between Safim and Mpack (115 km), corresponding to a section of the Dakar-Lagos Trans-African Highway corridor No.7 (TAH-7). More specifically, this includes widening the existing road to accommodate hard shoulders, as well as the rehabilitation of two major and five minor bridges. The EIB loan will support road rehabilitation works on the approximately 65 km-long section, starting from PK45 close to village of d'Antotinha to the M'Pack border crossing.

As part of the EU's Global Gateway strategy, this project will bring significant improvements in the country, such as increased mobility and safety, better access to trade and economic activities, as well as essential services. The project will also promote regional integration, enhancing Guinea-Bissau's potential to trade with neighbouring countries and within the wider West African market. Additionally, it will benefit through economies of scale from an expanded market in an integrated African economy under the African Continental Free Trade Area (AfCFTA) which entered into force on 1 January 2021. As a strategic regional corridor, the project is supported by the EU under its Multi-Annual Indicative Programme for Sub-Saharan Africa (2021-2027). The project also forms part of the EU Global Gateway strategic corridor Praia/Dakar-Abidjan, identified under the 2nd Priority Action Plan of the Programme for Infrastructure Development in Africa (PIDA PAP 2). The project will contribute to the following Sustainable Development Goals (SDGs): SDG 9 (Industry, Innovation and Infrastructure), SDG 13 (Climate Action), as well as SDG 1 (reducing poverty), SDG 5 (gender equality), SDG 8 (providing decent work and economic growth) and SDG 17 (partnership and goals).

The project concerns the rehabilitation and climate change resilience enhancement of a 115km long section of the N2 highway between Safim and MPack (border post with Senegal).

The project addresses market failures related to accessibility and connectivity in Guinea-Bissau and offers local inhabitants and workers a safer environment in which to live and trade. The project is expected to foster the sustainable and inclusive economic, environmental and social development of Guinea-Bissau. The project improves transport conditions and road safety, while strengthening the climate resilience of the road corridor.

Falling within the Global Gateway's strategic corridors (the Praia-Dakar-Abidjan strategic corridor), the project is fully in line with the priorities of the NDICI Global Europe mandate for the 2021-2027 MFF. It will allow for the rehabilitation of the only paved strategic road in the country, which is part of the Dakar-Lagos Trans-African Corridor No. 7 (TAH-7), thus improving the country's prospects for international cooperation and trade.

Most of the project's benefits relate to improved travel time, vehicle operating cost savings and safety benefits as a result of upgraded and rehabilitation infrastructure. By improving accessibility, the project is expected to have a positive effect on employment creation in the country.

EIB is providing technical assistance to reinforce the capacity of the promoter with respect to the implementation and operation of the project. The EIB loan is blended with an EU grant, thus offering favourable and highly concessional financing conditions to the borrower, the Republic of Guinea-Bissau.

The Project is expected to contribute toward a number of Sustainable Development Goals (SDGs), and in particular SDG3 (good health and well-being), SDG 9 (improving industry innovation and infrastructure) and SDG 13 (contributing to Climate Action). It is also expected to contribute SDG 1 (reducing poverty), SDG 5 (gender equality), SDG 8 (providing decent work and economic growth), SDG 10 (reduced inequalities), SDG 11 (sustainable cities and communities) and SDG 17 (partnerships for the goals).

If located within the EU, the project would fall under Annex II of environmental impact assessment (EIA) Directive 2014/52/EU amending the EIA Directive 2011/92/EU and would therefore be subject to screening by the competent authority to determine whether an EIA was required. The project is, in any case, categorised as requiring a full EIA under applicable domestic legislation, Law 10/2010 of 24 September (Lei de Avaliação Ambiental) setting general principles for the EIA procedure. Therefore, an EIA procedure, in accordance with applicable standards, needs to be undertaken and submitted to the Competent Authority for approval. The Bank will check the environmental and social aspects during appraisal and verify that the Promoter has complied with the relevant EU principles and the EIB Environmental and Social Standards.

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement. In particular, the Bank will require that calls for international tenders will be published in the OJEU.

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