CABO VERDE BLUE ECONOMY SUSTAINABLE PORTS FL

Promoter – Financial Intermediary

CABNAVE - ESTALEIROS NAVAIS DE CABO VERDE SA,EMPRESA NACIONAL DE ADMINISTRACAO DOS PORTOS EP

Location

• Cape Verde

Description

Framework loan to finance the rehabilitation and expansion of various ports in the archipelago of Cabo Verde (on different islands including Santo Antão, São Vicente and Sal), as well as of the country's main shipyard located in São Vicente, contributing to the sustainability and resilience of the sector.

Additionality and Impact

The proposed investment programme consists of the expansion and rehabilitation of several ports in Cape Verde, as well as the shipyard rehabilitation on the island of São Vicente.

 

The government of Cape Verde aims to transform the archipelago into a maritime and logistic hub in the Atlantic and targets the blue economy to contribute 25% of Gross Domestic Product (GDP) by 2030, generating 35.000 jobs and becoming an export sector. However, despite the existence of adequate infrastructure, local port infrastructure requires capacity extension, upgrades and rehabilitation works (including safety and energy efficiency) to cope with future traffic forecast.

Therefore, this project is expected to improve Cape Verde's integration within global and regional maritime transport logistics and trade.

 

Through this operation, the EIB will support the development of the blue economy and the sustainable management of marine resources, which is a component of the EU's MIP for Cape Verde (2021-2027). Moreover, strengthening socio-economic sectors and related infrastructure and sustainable connectivity, including the blue economy is an explicit priority area of NDICI.

 

Through this project, the EIB will materialise further its support to sustainable port infrastructure that enhances operational efficiency and at the same time helps reduce global transport chain emissions. Hence, this operation seeks to support the decarbonisation and depollution of the maritime sector and consequently the project is deemed to provide a significant contribution to climate action and support the Bank's climate finance objectives outside the EU.

 

The project is also expected to deliver relevant social and economic benefits.

Objectives

The objective of the proposed framework loan is to transform Cape Verde ports and main shipyard into a regional centre of excellence, equipped with modern technology, infrastructure and human resources. Indeed, investments in ports and related blue economy infrastructures are necessary to expand the country's economy by unifying a scattered market and creating the necessary conditions to explore international connections, value chains and markets. The project is also aligned with the EU's Multi-Annual Indicative Programme for Cape Verde (2021-2027) and the EU's regional transport integration objectives under the Global Gateway to boost smart and secure transport systems across the world. The proposed investment is also expected to have important regional benefits for it falls within the Praia-Dakar-Abidjan multimodal transport corridor, identified by the EU as a strategic regional corridor in both its (1) regional Multi-Annual Indicative Programme for Sub-Saharan Africa (RIP - 2021-2027) and (2) Global Gateway initiative.

Sector(s)

• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 114 million

Total cost (Approximate amount)

EUR 229 million

Environmental aspects

If the Project was located within the EU its components would fall under Annex I of the EIA Directive (2011/92/EU as amended by Directive 2014/52/EU), which requires an Environmental Impact Assessment (EIA) and Annex II of the EIA Directive (2011/92/EU as amended by Directive 2014/52/EU), which requires the competent national authority to determine the need for an EIA. The Project may also include communication, automation and digitization components that may not require EIA screening. The Project components that will be located in or near protected areas will require appropriate assessments, a condition to their inclusion in the Project. The Bank will review the project's potential environmental impacts in detail at appraisal stage.

Procurement

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. In particular, the Bank will require that calls for international tenders will be published in the OJEU in accordance with the Bank's Guide to Procurement.

Status

Signed - 2/09/2024