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Niger, Niger Dry Port

DevCo supported IFC to develop the Niger Dry Port Project to improve efficiency of trade in Niger

 

Niger Dry Port Icons

 

Click here to read more about DevCo’s achievements in 2015.

 

Context

Niger is a landlocked country which is entirely reliant upon the infrastructure and maritime access of neighbouring countries for its imports and exports. The time-consuming sorting and processing of merchandise from Niger takes place in the congested sea ports of Cotonou (Benin), Lome (Togo), Tema (Ghana) and Abidjan (Côte d’Ivoire). Transport costs are prohibitively high; presenting a major obstacle to Niger’s development. The Government of Niger (GoN) are keen to pursue the development of dry port facilities and transport infrastructure to improve Niger’s access to affordable trade.

 

Project

The IFC was engaged as the lead transaction advisor to the GoN and, with DevCo’s support, was instrumental in structuring and implementing the Niger Dry Port Project, a two-site facility in Dosso (corridor of Benin) and Niamey Rive Droite (corridors of Togo, Ghana and Côte d’Ivoire).

The Niger Dry Port will be multi-modal with a connection to a new railway project linking the Port of Cotonou (Benin) and Niger. When completed, Dosso dry port platform will be the largest multi-modal cargo handling centre for imports from Benin. IFC and DevCo worked to attract the private sector to the development and operation of the greenfield Dosso site and existing Niamey Rive Droite platform. As the first of its kind in Niger, the Niger Dry Port Project required extensive legal and technical support to structure an attractive, bankable deal with appropriate regulatory frameworks in place to ensure its success. Following IFC recommendations, the GoN created a Dry Port Authority in 2014 with responsibility for conceding and monitoring the concession.

Having established a transparent and competitive bidding process, IFC and DevCo were involved in helping to select a private operator, Bolloré Africa Logistics (BAL), to build, develop and operate both dry ports. BAL won a 20-year concession, investing $77m and guaranteeing fees to the GoN of $48m over the concession lifespan.

Impact

By moving essential sorting and processing of goods inland, the Niger Dry Port will reduce congestion at the regions’ seaports. Inland processing will provide employment opportunities in Niger and will add value further up the supply chain. The Niger Dry Port will provide faster, more affordable links with coastal ports, facilitating efficient international trade while investment in transportation assets will enable Niger to accelerate the flow of cargo from ships to inland destinations. With improved access to trade within West Africa and internationally, the project has the potential to position Niger as an important trade hub.