Release date: 5 October 2021
Promoter – Financial Intermediary
REPUBLIQUE DU TCHADLocation
Description
The project consists of the rehabilitation of several sections of the road corridor from N'Djamena to the Cameroon border in the South. Once rehabilitated, this 596 km long corridor will enable Chad to have access to the nearest seaport located in Douala, Cameroon.
Additionality and Impact
The project concerns the design, reconstruction and upgrading of some 229 km of the road corridor N'Djamena - Moundou - Cameroon Border.
The project addresses market failures related to accessibility and connectivity of Chad as a landlocked country and offers local inhabitants and workers a safer environment. It improves transport conditions, including service level, road safety and climate resilience.
The project contributes to Chad and EU development priorities and policy towards Africa, being one of the strategic corridors of the Global Gateway Africa initiative. The operation contributes to the NDICI objectives and is in line with Chad's National Development Plan (2017 - 2021) still active.
Most of the benefits of the project are travel time, vehicle operating cost savings and safety benefits obtained through better infrastructure quality. The project will have a positive impact on employment.
The Bank provides technical contribution on project preparation and implementation with particular attention to road safety and climate resilience concerns. The Bank also offers a set of favourable financial conditions to the borrower.
The proposed operation is expected to contribute to the achievement of most of the UN Sustainable Development Goals (SDGs), in particular 1, 3, 8, 9, 10, 13 and 17.
Objectives
The project aims at addressing the transport and mobility constraints in Chad for both individuals and goods. The proposed project will cover the rehabilitation and limited widening of several sections totalling some 280 km out of the 596 km of the road corridor from N'Djamena to Moundou, on the Cameroon border. Overall, the project aims at improving transport conditions, including level of service, road safety and climate change resilience. The project will improve the access of Chad, a landlocked country, to trade and economic activities thanks to the improvement of this main portal road link to the Douala seaport. The project will contribute to most of the Sustainable Development Goals (SDGs) in particular to SDG 9 and SDG 13, respectively aiming at improving Industry, Innovation and Infrastructure and contributing to Climate Action. It will also contribute to other more general SDGs such as SDG 1 (reducing poverty) and SDG 8 (providing decent work and economic growth).
Sector(s)
- Transport - Transportation and storage
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 176 million
Total cost (Approximate amount)
EUR 283 million
Environmental aspects
If located within the EU, the project would fall under Annex II of 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 environmental impact assessment (EIA) was required. The project is, in any case, categorised as requiring a full EIA under applicable domestic legislation, LOI Nº014/PR/98 "définissant les principes généraux de la protection de l'environnement." Therefore, an EIA procedure, in accordance with applicable standards, needs to be undertaken and submitted to the Competent Authority (Le Haut Comité National pour l'Environnement) 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.
Procurement
The Promoter is a public authority and the operation is considered a public sector operation. The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Status
Signed - 22/09/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).