Abidjan is a growing metropolis on the southern coast of Cote d’Ivoire with a population of over 20 million. The country’s former capital city has been in desperate need of an infrastructure upgrade in recent years, but in the wake of a military coup in 1999, international investment in the country all but dried up. A Bouygues-led consortium managed to change that trend in 2012 however with the Eu270 million ($326.3 million) Henri Konan Bedie toll bridge project, which reached financial close in July 2012.

Bouygues won the original concession for the Henri Konan Bedie bridge, named after leader that the 1999 coup deposed, in 1997. Over the 2-year period during which the financing was assembled the country has seen three changes of government and a presidential election. Despite these challenges the sponsors managed to close a multi-currency deal that benefited from political risk coverage for private sector lenders, and a minimum revenue guarantee. The government of Cote d’Ivoire, development banks, commercial banks, developers and an equity fund all ended up contributing towards the cost of the project.

Project company Socoprim’s owners are Bouygues (49%), Pan African Infrastructure Development Fund (22%), Total (4%), the government of Cote d’Ivoire and state-owned development bank Banque Nationale d’Investissement de Cote d’Ivoire (25% between them). The total equity contribution is Eu104 million, of which Eu76 million is a government subsidy. In addition to its direct equity investment, the government will also be spending a further Eu40 million to build a road interchange which will connect with the new bridge.

The 1.9km toll bridge will span the Ebrie lagoon in the south-east of the city. It connects the affluent neighbourhoods of Riviera to the north and Marcory to the south. SACPRM, a subsidiary of Bouygues, is the construction contractor for the bridge and the interchange.

Abidjan is Cote d’Ivoire’s economic capital and largest city, housing almost a quarter of the country’s population. Ebrie Lagoon is already crossed by two non-toll roads, the Houphouet-Boigny Bridge and Charles De Gaulle Bridge, but these are more than 4km away from the site of the new development and both currently exceed their combined design capacities by 22% each day. The government has conducted traffic and revenue studies in five of the last 15 years, and these show that local residents are willing to pay for shorter journey times and better serviced roads. The government believes that the project will have an economic rate of return of 58%.

The volume of users on the new bridge will be boosted from late 2014 by renovation work to the Houphouet-Boigny Bridge, and the government is assuming traffic risk on behalf of the lenders. Under its minimum revenue guarantee scheme, the government will have to compensate, on a quarterly basis, the difference between the actual revenue and the guaranteed revenue. This covers both senior and subordinated debt over the life of the loan, excluding grace period. The level of minimum revenue will fluctuate annually between Eu36 million and Eu68 million, with an average of Eu48 million.

“The Henri Konan Bedie Bridge is a highly important project which has been identified as an essential piece of infrastructure of the city of Abidjan for many years,” commented Sebastien Pejoan, project finance director at Bouygues Construction. “Given the current traffic congestion in Abidjan, the government and Socoprim are confident that the minimum traffic predictions will be met. These traffic projections have been checked by auditors appointed by the senior lenders of the transactions.”

The Eu171 million in debt split into a Eu128 million senior facility and a Eu43 million subordinated tranche. AfDB was lead arranger of the senior debt and contributed Eu58 million. FMO (Eu12 million), BMCE (Eu12 million) and the Africa Finance Corporation (AFC, $18.2 million) were the other senior lenders. Banque Ouest Africaine de Developpement (BOAD) and Banque d’investissement et de developpement de la CEDEAO (BIDC) also contributed to this tranche, with the former lending in central African francs – CFA14.3 billion ($26.9 million) and the latter contributing 11.1 million in the IMF’s unit of account ($7.2 million).

All senior debt has a 15-year tenor and a three-year grace period, except BMCE’s loan which has a nine-year tenor with three-year grace period. AFC was lead arranger for the 15-year (three-year grace period) sub debt, of which it provided $23.1 million, Bouygues contributed Eu5 million, FMO Eu8 million and Pan African Infrastructure Development Fund $21 million.

World Bank Group member MIGA has provided political risk insurance of $145 million covering the equity investments and subordinated loans from Bouygues and Pan African Infrastructure Development Fund, subordinated and senior loans from AFC, and senior loans from BMCE and FMO. MIGA’s insurance is for a period of 15 years and covers against the risk of transfer restriction, expropriation, war and civil disturbance, and breach of contract. 

SOCOPRIM
STATUS
Closed 28 June 2012
SIZE
Eu275 million
DESCRIPTION
Design-build-finance-operate concession for a toll bridge over the Ebrie lagoon in Abidjan, Cote d’Ivoire. Construction expected to be completed in approximately two years.
GRANTOR
Government of Cote d’Ivoire
SPONSORS
Bouygues Travaux Publics (BTP) (49%), Pan African Infrastructure Development Fund (22%), Total (4%), the government of Cote d’Ivoire and Banque Nationale d’Investissement de Cote d’Ivoire (25% between them).
LENDERS
AfDB, FMO, AFC, BMCE, BOAD, BIDC, Pan African Infrastructure Development Fund and BTP
ADMINISTRATIVE AGENT
BNP Paribas
LENDER LEGAL COUNSEL
White & Case
SPONSOR LEGAL COUNSEL
In-house and Cabinet Chauveau (local)
INDEPENDENT ENGINEER
Bureau Veritas
TECHNICAL ADVISER
Egis International
TRAFFIC ADVISER
MVA Consultancy
ENVIRONMENTAL CONSULTANT
Burgeap
LENDER INSURANCE ADVISER
Marsh
SPONSOR INSURANCE BROKER
Willis
EPC CONTRACTOR
Bouygues subsidiary SACPRM