Notice

Category B project supported: Roads and Bridges Project, Côte d’Ivoire

Published 30 November 2021

1. Project description

UK Export Finance (UKEF) has agreed to provide support to the Government of Côte d’Ivoire, represented by the Ministry of Economy and Finance, to facilitate the rehabilitation and construction of two existing trunk roads and four bridges in the east and west of Côte d’Ivoire. The Côte d’Ivoire Ministry of Infrastructre and Road Maintenance, represented by the Côte d’Ivoire Road Management Agency (“AGEROUTE”), will be responsible for the operation and maintenance of the road and Colas UK Limited (“the Exporter”) will provide construction services.

The Project comprises the reinforcement of the asphalt on the Agnibilékrou to Bondoukou road and ashpalting the Agnibilékrou to Takikro road. The Agnibilékrou to Bondoukou trunk road is an existing 133km paved road located in the Gontougo region. The road is in poor condition, with numerous cracks and potholes. The Agnibilékrou to Takikro trunk road is an existing 33km road in Indénie Djuablin region. The road is currently unpaved. There will be limited widening of this road in some sections. Four bridges will also be constructed (Guiglo Bridge on the N’Zo river; Bac de Siemen Bridge on the Sassandra river; Anniasué on the Comoe River; and Vonkoro Bridge on the Black Volta river). Aggreagate materials will be sourced from one new and several exsiting quarries.

The Project does not include any Associated Facilities^{[footnote 1]}.

2. Project sector

The Project is in the civil construction sector.

3. Project sponsors

The Project is being developed by AGEROUTE. Colas UK Limited will provide construction services for the Project.

4. UK exporters

Colas UK Limited

5. Export credit agent bank

Société Générale

6. Amount of UK Export Finance support

The Buyer Credit facility amount is £100 million.

7. OECD Common Approaches and Equator Principles

UKEF categorised the Project as a Category B i.e. having environmental, social and human rights (ESHR) impacts that are few in number, site-specific, few (if any) of which are irreversible, and for which mitigation measures are more readily available) in accordance with the definition in the 2012 (Revised 2016) OECD Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the “OECD Common Approaches”).

The Project does not fall under the scope of the Equator Principles (June 2013).

8. Environmental, Social and Human Rights standards

Project related ESHR documentation was reviewed for alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were:

• PS1: Assessment and Management of Environmental and Social Risks and Impacts
• PS2: Labour and Working Conditions
• PS3: Resource Efficiency and Pollution Prevention
• PS4: Community Health, Safety and Security
• PS5: Land Acquisition and Involuntary Resettlement
• PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
• PS8: Cultural Heritage

The applicable World Bank Group EHS Guidelines were:

• General EHS Guidelines (2007)
• EHS Guidelines for Construction Materials Extraction (2007)
• EHS Guidelines for Toll Roads (2007)

9. Nature of ESHR impacts

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project:

• climate change
• worker welfare
• occupational health and safety
• management of third-party contractors and suppliers
• grievance mechanisms
• noise, vibrations, dust and air emissions
• hazardous materials, waste and drainage management
• water and energy resources
• community engagement
• community health, safety and security
• emergency planning and response
• traffic management
• land acquisition
• biodiversity
• cultural heritage
• decommissioning and restoration

10. Assessment of ESHR impacts

A review was undertaken in line with the requirements of the OECD Common Approaches to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

The review included:

• Desk-based review of Project-related documentation, including Environmental and Social Impact Assessment (ESIA), Environmental and Social Management Plan, and Stakeholder Engagement Plan
• Site visits to the Project area conducted by the ESIA team. These included interviews with relevant personnel, meetings with AGEROUTE, local authorities and community representatives
• Follow-up meetings and interviews with relevant Project representatives.

The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

11. Climate change considerations

UKEF considered the Project’s potential direct and indirect greenhouse gas (GHG) emissions and effects of climate change factors on the Project as part of its ESHR review. The Project is not considered to be a carbon intensive undertaking (such as fossil fuels or petrochemical) and so “high” Scope 1 and 2 emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged. The Project’s largest source of emissions will be from vehicles using the road (i.e. its Scope 3 emissions). Whilst the Project will create some additional traffic, much of the expected traffic growth that will be accomodated on the Project roads is expected to occur irrespective of the Project, i.e. due to broader economic activity in the country. The associated increases in GHG emissions are considered in line with the Project’s positive development impacts. The ESHR review revealed that the Project design has considered potential physical impacts of climate change such as floods and extreme temperatures.

12. Decision

Various actions have been agreed between the Project developers, operators, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle. UKEF has therefore decided to provide its support in respect of the supply of capital goods and services by UK exporters to the Project.

A condition of support is that the Project will be subject to environmental and social monitoring to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.

UK Export Finance

November 2021

1. The OECD Common Approaches defines “Associated Facilities” as: those facilities that are not a component of the project, but that would not be constructed or expanded if the project did not exist and on whose existence the viability of the project depends; such facilities may be funded, owned, managed, constructed and operated by the buyer and/or project sponsor or separately from the project. ↩