African Development Bank Group approves historic agreement with European Commission
13-07-2017 10:58:40 | by: Andrea Ayemoba | hits: 5683 | Tags:

The Board of Directors of the African Development Bank Group has approved a historic framework agreement known as the Pillar Assessed Grant or Delegation Agreement (PAGODA) between the Bank group and the European Commission (EC). The agreement – which further enhances the Bank Group’s franchise value as the premier development finance institution in Africa – will leverage and catalyze grants for the Bank’s Regional Member Countries (RMCs) via EC blending instruments. This scaled-up cooperation will enable the Bank to focus on the High-5 priority areas from its 10-Year Strategy by supporting both sovereign and non-sovereign operations.

Highlighting the relevance of the agreement, Bank Group President, Akinwumi Adesina said the EU policy priorities are in line with the Bank’s Ten Year Strategy and High 5 priorities, including the golden threads related to gender, climate resilience and fragility. “What is particularly important is it allows us to push on High 5s in the areas of transport and energy,” he observed.

Following consultations with various RMC governments, regional economic communities and civil society, the EC has already approved grants amounting to €434 million to support 15 large-scale infrastructure projects in West and Central Africa. These EC grants will be blended with concessional financing from the African Development Fund (ADF) to support projects in energy and transport such as the 330KV Nigeria-Niger-Burkina Faso-Benin interconnection, the rehabilitation of the Lome-Cotonou Road and the Rosso Bridge Construction project connecting Mauritania and Senegal.

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