ANNUAL REPORT 2016 · 2020-06-08 · BCEAO and the Islamic Development Corporation, member of IsDB,...

ANNUAL REPORT 2016

2ANNUAL REPORT 2016

TABLE OF CONTENTSTABLE OF CONTENTS

PRESIDENT’S STATEMENT

SYNOPSIS ON BOAD AND LOANS GRANTED IN 2016

HIGHLIGHTS OF THE YEAR 2016

LIST OF ACRONYMS AND ABBREVIATIONS

LIST OF ANNEXES

ANNEXES

SECTION ONEECONOMIC AND SOCIAL ENVIRONMENT

SECTION TWOACHIEVEMENTS IN 2016

THEME FOR THE YEARTHEMATIC ASSESSMENT OF THE SUSTAINABILITY OF ROAD PROJECTS

1

2

3

ECONOMIC AND SOCIAL ENVIRONMENT

1. INTERNATIONAL ECONOMIC ENVIRONMENT

2. ECONOMIC ENVIRONMENT IN THE WAEMU REGION

2.1. Economic situation2.2. Human development

ACHIEVEMENTS IN 2016

1. GENERAL PICTURE

2. ACHIEVEMENTS ACCORDING TO STRATEGIC AREAS

2.1. Speeding up regional Integration through sustained financing of infrastructure2.2. Support for inclusive growth, food security and sustainable development2.3. Support for businesses and governments, developping financial engineering and services2.4. Deepening the resource mobilization process2.5. Alignment management and governance


1. REVIEW OF THE BANK’s POLICIES AND STRATEGIES IN THE AREA OF ROAD INFRASTRUCTURE

1.1. BOAD's strategic approach to the road sub-sector1.2. Key information

2. REVIEW OF PORTFOLIO OF ROAD PROJECTS FINANCED

2.1.The predominance of road projects in BOAD's operations2.2. Some development outcomes2.3. Lessons learned from the portfolio review

3. RESULTS OF EX-POST PERFORMANCE EVALUATION

3.1. Ex-post projects evaluations and the results obtained3.2. Lessons learned from ex-post project evaluation

4. CONCLUSION AND RECOMMENDATIONS

http://www.rapportannuel2016-boad.org/english.html

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CHRISTIANADOVELANDE

In 2016, economic growth sloweddown in many countries in sub-Saharan Africa. The 1.5% growth

rate recorded in the region was oneof the poorest performances in over

a decade.

In spite of this poor performance across the continentand the global economic downturn, economies in theWAEMU region were resilient during the year. Econo-mic activity in the region grew by 6.8% up from 6.6%in 2015, while inflation remained low at 0.3% asagainst 1% in 2015. This relatively robust performancein our region was clearly a result of our continued in-vestment in infrastructure, the remarkable performanceof the agricultural sector, gradual improvement in bu-siness climate and stability in our socio-political andsecurity context.

For its part, BOAD supported economies of the Unionby providing financial assistance totaling XOF500.6 bil-lion. These funds went mainly into investment projectsinvolving XOF433.8 billion granted as long-term loans,and XOF51.9 billion in the form of short-term loans.Approximately XOF12.8 billion of these funds wentinto strategic equity investments, while XOF36.2 billionwere used in refinancing national financial institutionsor the WAEMU regional fund for mortgage refinancing(CRRH-UEMOA).

The loans granted by the Bank will foster agriculturaldevelopment, help in rehabilitating road and airport in-frastructure, promoting tourism and hospitality industryand strengthening power generation capacity, particu-larly in the area of renewable energies (solar energy,hydropower). As at 31 December 2016, loans granted during theyear brought net cumulative commitments toXOF4,409.4 billion covering 1,044 operations.

The Bank made disbursements totaling XOF310 billionfor the year, representing a 63.7% disbursement rate.

In terms of resource mobilization, the Bank conductedits maiden bond issue on the international capital mar-ket during the year. The operation involved an amount


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of US$750 million. This was made possible by the "in-vestment grade" rating that the Bank has had since2015. Another roadshow, on a smaller scale, wasconducted on the regional market for an amount ofXOF78.23 billion. Finally, five financing agreementswere signed for a total of XOF225 billion.

The Bank also mobilized XOF155.3 billion for variousclients, under the financing arrangement mandates forproject Financing.

The proposed update of the Bank's loan pricing model,launched at the end of 2013, resulted in recommen-dations that the Board finally endorsed during the yearunder review, for implementation from January 2017.Other procedures were initiated during the year, as partof efforts to strengthen the Bank's financial manage-ment system.

Income for the year stood at XOF10.5 billion, up fromXOF8.8 billion as at the end of 2015, thereby increa-sing the Bank's capital base.

During the year, the Bank obtained accreditation by theGreen Climate Fund as a regional implementing entity.This accreditation, which adds to those from the Adap-tation Fund and Global Environment Facility, bolstersthe Bank's ability to mobilize grants for "climate pro-jects" in WAEMU member countries.

In view of the strong support that the Bank has recei-ved from the highest authorities of member countries,I would like to take this opportunity to express to themmy sincere gratitude. My thanks also go to our partnersfor their multifaceted support. At last, I would like tocongratulate and applaud the efforts of the Bank staff,so that we remain committed to the advancement ofBOAD in achieving its mandate.


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ANNUAL REPORT 2016


AFD : Agence française de développement (French

Development Agency)

AfDB : African Development Bank

BADEA : Arab Bank for Economic Development in

Africa

BCEAO : Central Bank of West African States

BCP : Business continuity plan

BOAD : Banque Ouest Africaine de Développement

(West African Development Bank)

CDP : ECOWAS Community Development

Programme

CILSS : Permanent Inter-State Committee on

Drought Control in the Sahel

CPDN : Intended Nationally Determined

Contributions

ECOWAS : Economic Community of West African States

EIB : European Investment Bank

ERP : Enterprise resource planning

FAO : United Nations Food and Agriculture

Organization

FCFA : Franc de la Communauté Financière

Africaine (Franc of the African Financial

Community)

FCFA/XOF BLN : Billion francs CFA

FDC : Fonds de Développement et de Cohésion

(Development and Cohesion Fund)

FDE : Fonds de Développement Energie (Energy

Development Fund)

FED : European Development Fund

FER : Road Maintenance Fund

GDP : Gross Domestic Product

GEF : Global Environment Facility

HDI : Human Development Index

ICD : Islamic Corporation for Private Sector

Development

IDB : Islamic Development Bank

3IE : International Initiative for Impact Evaluation

IFAD : International Fund for Agricultural

Development

IMF : International Monetary Fund

IRED : Initiative Régionale pour l’Energie Durable

(Regional Initiative for Sustainable Energy)

MLT : Medium and long-term

PER : Programme Economique Régional (Regional

Economic Programme)

PIR : Programme Indicatif Régional (Regional

Indicative Programme)

PPIAF : Public-Private Infrastructure Advisory Fund

PPP : Public Private Partnership

RCC : Regional Collaboration Centre

SAP : Systems, applications and products for data

processing

SME : Small and medium-sized enterprises

ST : Short-term

UNIDO : United Nations Industrial Development

Organisation

UNDP : United Nations Development Programme

URDPPP : Regional Public-private Partnership Project

Development Unit

WAEMU : West African Economic and Monetary Union

WAPP : West Africa Power Pool


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SYNOPSIS ON BOAD AND LOANS GRANTED IN 2016TABLE OF CONTENTS





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Date of creation 14 November 1973 Commencement of activities in 1976 Shareholders - WAEMU member countries: Benin, Burkina Faso, Côte d’Ivoire,

Guinea Bissau, Mali, Niger, Senegal, Togo - BCEAO (Central Bank) - Non-regional shareholders: AfDB, EIB, France, Belgium, Germany,

Export-Import Bank of India, People’s Republic of China, Kingdom ofMorocco

Mission Promoting the balanced development of member countries andcontributing towards the economic integration of West Africa

Vision BOAD: a solid development bank for the economic integration andtransformation of West Africa.

Authorized capital as at 31 December 2016 XOF1,155 billion Subscribed capital as at 31/12/2016 XOF1,097.8 billionTotal balance sheet as at 31/12/2016XOF2,263.3 billion Operational staff of the Bank as at 31/12/2016 272 staff members Loans granted in 2016 50 loan operations involving a total of XOF500.6 billion

Direct loans :XOF451.6 billion, representing 90.0% Indirect loans :XOF36.2 billion, being 7.0% Equity investments :XOF12.8 billion, representing 3.0%

Breakdown of loans per sector:

Non-commercial sector : XOF261.0 billion, representing 52.1%(25 operations)

Public commercial sector : XOF113.4 billion, representing 22.7%(8 operations)

Private sector : XOF126.2 billion, representing 25.2%(17 operations)

Breakdown of loans per category

National projects : XOF342.5 billion, representing 68.4% Regional projects : XOF158.1 billion, representing 31.6% Cumulative approvals, 1976 - 2016 XOF4,409.4 billion for 1,044 operations


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22-24 February

Regional workshop on the preparation of thebiennial report of the Parties not included inAnnex I of the United Nations FrameworkConvention on Climate Change (UNFCCC)

From 22-24 February, the Regional CollaborationCenter (RCC), created in partnership by and bet-ween BOAD and the UNFCCC Secretariat, held a re-gional workshop in Lome on the preparation ofupdated biennial reports. The meeting, which was supported by the UNDPand FAO, was part of the agenda by African coun-tries that are party to the UNFCCC to formulate na-tional communications on climate change. The meeting provided an opportunity for expertsfrom 44 African countries to have a better unders-tanding of the international system of measure-ment, reporting and verification (MRV), in a bid toavoid cases of double counting of reductions ingreenhouse gas emissions.

28 April

BOAD's maiden bond issue on the internationalcapital market

As part of efforts to diversify and secure its refinan-cing resources, the Bank obtained an international

"investment-grade" rating. This rating enables theBank to carry out its maiden bond issue on the in-ternational capital market.The operation raised US$750 million, over a 5-yearmaturity. The bonds were issued at a 5.75% rate ofreturn and an annual coupon of 5.5%. The interestrate stood at 3.83% after a swap in Euros.

17-18 May

Meeting of the Advisory Group on thefinancing of Cote d'Ivoire's 2016-2020 nationaldevelopment plan

The Bank took part in the Advisory group meetingheld in Paris on 17 and 18 May on the financing ofCôte d'Ivoire’s 2016-2020 national developmentplan.The event was organized by the Governmentof Côte d'Ivoire in partnership with the World Bankand other bilateral and multilateral technical and fi-nancial partners.The main objective of the meeting was to share theGovernment's economic vision with its partners andto mobilize external, public or private funding forthe implementation of the national developmentplan.


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20 June

Renewal of BOAD's accreditation as an imple-menting entity of the Adaptation Fund (AF)

Following a reassessment by its accreditation panel,which concluded that BOAD continues to meet therequirements of fiduciary standards as well as envi-ronmental, social safeguards, the Board of the Cli-mate Change Adaptation Fund, on 20 June 2016,renewed BOAD's accreditation as a regional imple-menting entity for another term of five years.

27 July

Conference on the theme "Governance for theprevention of fraud: challenges and innovativesolutions for corporate leaders in the WAEMUregion"

A conference on the above theme was held atBOAD headquarters on 27 July. The conference pro-vided a platform for discussions on the specific chal-lenges facing directors and senior executives ofcompanies in line with the adoption of new gover-nance principles and mechanisms, and new strate-gies for preventing fraud in the WAEMU region. Were in attendance at the conference, banks orcompanies’ heads and managers in Togo and Benin,

representatives of the Togo Bar Association , nota-ries, and officers from Togo national police, customsservice and public treasury. Representatives of theAssociation of Chartered Accountants of Togo andBenin, as well as those from civil society, also atten-ded the conference.

13-15 September

Press trip to Côte d'Ivoire

The Bank organized a press trip to Côte d'Ivoire,from 13 to 15 September, for journalists fromAgence France Presse (print media and television),“Le Monde”, "Le Moniteur du Commerce Interna-tional (MOCI)", "Jeune Afrique", as well as journa-lists from the "MondAfrique" information site Through field visits and discussions with officials andthe President of BOAD, the press trip provided anopportunity for media professionals to have a first-hand assessment of the impact of projects financedby the Bank in various sectors, including transportfacilities, energy and agro-food industry.


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20 September

BOAD's participation in the regional confe-rence organized by BCEAO and the IMF onthe theme "Finance for all: promoting finan-cial inclusion in West Africa"

On 20 September in Dakar, BOAD President tookpart in a regional seminar co-hosted by BCEAO andthe IMF on the above theme. The meeting brought together decision-makersfrom ECOWAS, consultants from international ins-titutions and the private sector, representatives ofcivil society and academia, to share ideas on variousoptions for promoting access to financial services inWest Africa. This was to identify factors that hamper access tofinancial services, as well as ways of addressing suchchallenges, particularly through non-conventionalfinancial services and the use of new technologies.

28-29 September; 3-4 October; 1-2, 6-7 December

Training seminars on BOAD’s new fiduciarystandards

On 28 and 29 September, in Ouagadougou, the Bankheld a training seminar on its new fiduciary standards.This was followed by training seminars in Niger (3-4October), Cote d'Ivoire (1-2 December) and Senegal(6-7 December). These seminars helped in introducing the newmeasures put in place by BOAD in four areas:

i) procurement contracts funded under its opera-tions, ii) prevention and fight against fraud and cor-ruption, iii) prevention and fight against moneylaundering and terror financing, iv) verification ofcompliance and dispute settlement.Participants were from civil society organizations andgovernment agencies.

12-14 October

Accreditation of BOAD as partner entity of theGreen Climate Fund (GCF)

During its 14th session held at Songdo (SouthKorea), the Board of Directors of the Green ClimateFund approved the accreditation of BOAD as regio-nal implementing entity for medium-sized pro-jects/programmes.This accreditation was an addition to those alreadyobtained from the Adaptation Fund and the GlobalEnvironment Facility (GEF).

17 November

BOAD wins the "Special Award" during the2016 Corporate Edition of the Law Awards

The Bank was awarded the "Special RecognitionTrophy" during the 2016 Corporate Edition of theLaw Awards held in Paris on 17 November 2016 bythe Leaders League. This award was in recognitionof the Bank’s achievements in management andlegal certainty.


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25 November

BOAD Vice-President appointed Vice-Chairmanof AFRACA

During the 19th General Meeting of the AfricanRural and Agriculture Credit Association, Mr. BassaryToure, BOAD Vice-President was appointed Vice-Chairman of the Association. Nairobi-based AFRACA is an international organiza-tion whose mission is to improve the rural credit en-vironment through the promotion of appropriatepolicy framework and to support member institutionsfor a sustainable supply of good quality financial ser-vices to rural populations. The Association has 126members including central banks, developmentbanks and commercial banks.

7-8 December

The Conference of Burkina Faso’s Partners forthe financing of the country's 2016-2020 natio-nal socio-economic pevelopment plan (PNDES)

A BOAD delegation led by its President, took partin the Conference of Burkina Faso’s Partners, heldin Paris on 7 and 8 December for the financing ofthe country's PNDES.

The conference organized by the Government ofBurkina, with technical and financial support fromdevelopment partners including the World Bankand UNDP, was aimed at engaging the country'spartners as well as other public and private investorsin the financing of its national socio-economic pe-velopment plan.

14 December

Funding for a first PPP hydropower project pro-moted by private investors in the sub-region

The Bank’s Board of Directors approved on 14 De-cember the first hydropower project under a PPP ar-rangement and financed by investors within theWAEMU region. The Bank confirms its commitment to provide fun-ding for renewable energy projects aimed at reducinggreenhouse gas and other forms of pollution. Theproject will cut the emission of 4.6 million tons ofCO₂, which will generate about 4.34 million units ofcarbon credits.








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19-22 December

The Bank receives ISO 27001 Certification forinformation system security

After an audit by the certification authority (AFNORCertification), which took place from 19 -22 Decem-ber, the Bank obtained the ISO 27001 certificationversion 2013. In its quest for excellence, the Bank had taken stepsto better protect its information assets. The Bank re-corded positive incomefor the financial year, therebyimproving its image.

26 December

Handing over of the first batch of houses atBOAD staff quarters

On 26 December, BOAD President approved thehanding over of the first batch of completed villasat the BOAD staff quarters. The said quarters, located atBaguida, a suburb ofLomé, is part of the Bank's corporate policy and ef-forts at staff retention. Based on housing loans, the villas designed in va-rious formats, are made available to interested staffand who meet the pre-determined access criteria.




1SECTION ONEECONOMIC AND SOCIAL ENVIRONMENT1. INTERNATIONAL ENVIRONMENT2. ECONOMIC ENVIRONMENT IN THE WAEMU REGION

2.1. Economic situation

2.2. Human Development



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SECTION ONEECONOMIC AND SOCIAL ENVIRONMENT1. INTERNATIONAL ENVIRONMENT2. ECONOMIC ENVIRONMENT IN THE WAEMU REGION





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1. INTERNATIONAL ENVIRONMENT

In 2016, the global economy grew by 3.1%, comparedwith 3.2% in 2015. This performance was due to a slow-down in advanced economies and a good pace of growthobserved in developing and emerging economies.

Thus, in developed countries, economic activity droppedfrom 2.1% in 2015 to 1.6%, due to various sources ofuncertainty that had affected corporate investment. Thisuncertainty was also felt across Europe, particularly, be-cause of the Brexit vote in June.

Economic activity in developing and emerging economieshowever maintained its momentum from 2015 (+ 4.1%),and was supported by a robust performance in China(+6.7% compared to 6.9% in 2015) and India (+6.6%against 7.6%).

Economies in sub-Saharan Africa were affected by theprolonged decline in oil prices, despite a gradual rise inthe price per barrel and prices of other commodities. Thisunfavorable situation particularly affected the region'slargest economies, Nigeria and South Africa. Nigeria re-corded a recession (-1.5% as against 2.7% in 2015) whileSouth Africa saw a slowdown in its growth (+0.3% com-pared with 1.3% in 2015). In total, the rate of economicgrowth in sub-Saharan Africa stood at 1.5% in 2016down from 3.4% in 2015.

However, in most low-income countries, growth was ge-nerally resilient due to massive investment in infrastruc-ture and private consumption. The resilience of the

economies of Côte d'Ivoire, Kenya, Senegal and Tanzania,partly offset the slowdown in economic activity across theentire the region.

Prices increased slightly in 2016. Inflation stood at 0.8%in advanced economies compared to 0.3% in 2015. Inthe United States, price variation was 1.2% in 2016, upfrom 0.1% in 2015, while in the Euro zone, the rate ofinflation was estimated at 0.3% in 2016, after staying atalmost zero in 2015. Inflation in developing and emer-ging economies was 4.5% in 2016 down from 4.7% in2015.

In the foreign exchange markets, the Euro appreciatedslightly against the US dollar and the Swiss franc, andmuch more against the pound sterling. Among the emer-ging countries’ currencies, the “renminbi” continued todepreciate gradually. In the West African market, and ac-cording to official data, the CFA franc posted a strongperformance against the major currencies in the sub-re-gion.

The outlook for 2017 was positive with respect to the in-ternational economic environment. Global economicgrowth was expected to reach 3.4% as against 3.1% in2016, as a result of a significant fiscal stimulus in the Uni-ted States. However, certain factors influenced this out-look, including the gradual slowdown and therestabilisation of the Chinese economy, the effect ofBrexit and internal conflicts in some parts of the MiddleEast and Africa.









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0

1

2

3

4

5

201620152014

Sub-Saharan AfricaEmerging & developing countries

Euro zone Advanced countriesWord

Graph 1Growth in economic activity from 2014 to 2016 (%)

Source: IMF Data (PEM, January 2017).









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In 2016, the WAEMU region recorded a 6.8% economicgrowth rate up from 6.6% in 2015. This favourable resultwas due to the good performance of the primary sectorin most of the countries, the dynamism in the construc-tion industry and sustained performance in the transportand communications industry. The Union's economy wasalso supported by the reduction in oil bill, decline in crudeoil prices, unlike the main oil exporting countries in sub-Saharan Africa.

The situation per country was as follows: Benin (5%),Burkina Faso (5.4%), Côte d'Ivoire (9.3%), Guinea

Bissau (5.4%), Mali (5.4%), Niger (4.6%), Senegal (6.6%)and Togo (5.0%).

Economic activity took place in a context of price stability,with an inflation rate of 0.3% down from 1.0% in 2015,due to the drop in oil prices and bumper harvest in mostof the member countries.

The region's economies are expected to record a 7.3%growth rate in 2017, on the back of a strong perfor-mance from all sectors of the economy.

2. ECONOMIC ENVIRONMENT IN THE WAEMU REGION

2.1. ECONOMIC SITUATION









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2

4

6

8

Sub-Saharan AfricaWAEMU

20162015201420132012

Graph 2Comparative economic growth between WAEMU and Sub-Saharan Africa (%)

Source: WAEMU Commission, IMF.









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In 2016, gender equality and the role of women in theeconomic and social development of countries was oneof the major themes that contributed to reflections anddiscussions at international meetings. These issues havebeen discussed at various fora by various internationalinstitutions (IMF, AU and UNDP in particular), as part oftheir analytical work and advisory mandate to membercountries. The African Union, in particular, proclaimed2016 'African Year of Human Rights', with special em-phasis on women's rights, while it declared 2015 “theYear of Women’s Empowerment and Development".

The theme is not new, but finds justification in the per-sistence of gender disparities, which is a real obstacle tothe enhancement of the economic potential of women,as it limits their contribution to development.

The 2016 UNDP Human Development Report titled "Ac-celerating Progress on Gender Equality and EmpoweringWomen in Africa", provides a framework for the imple-mentation of the SDGs, particularly SDG 5 which dealswith gender equality.

According to this report, gender disparities would costSub-Saharan Africa an average of about US$95billion perannum (6% of the region's GDP). These would thereforehamper the continent's efforts for inclusive economicgrowth and human development.

Governments in the WAEMU region, recognizing the ne-gative impact of gender inequality on human develop-ment, are making efforts to address gender gaps,including gender-sensitive planning and budgeting, gen-der equality in national legislation (constitutions, laws),as well as in national development planning. For its part,BOAD has systematically included the gender dimensioninto projects financed, with a view to improving women'saccess to credit (especially productive capital) and econo-mic opportunities.

Although progress has been made on many fronts, gen-der equality is still far from being achieved. Progress inthis area is slower than expected, and irregular in achie-ving the goal of gender parity.

2.2. HUMAN DEVELOPMENT









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Women are still a minority and under-represented in de-cision-making bodies. Unemployment is higher amongwomen and socio-cultural constraints continue to impedewomen's full political and economic empowerment, es-pecially in rural and peri-urban areas. Statistics show thatgender inequality remains high in the region (See chartbelow). Countries that have a low level of gender inequa-lity have a high human development index. These coun-tries include Senegal, Togo and Benin.

The 2016 UNDP HDI report proposes measures to bridgethe gap between men and women. These include: i) ad-dressing the contradiction between legislation and prac-tice in order to move from legal gender equality to actualequality, ii) break away from certain social norms that af-fect women, and iii) transform discriminatory institutionalframeworks to ensure women's political, economic andsocial participation.

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

GII

HDI

Niger

Côte d'ivoire

Mali

Burkina Faso

Benin

Togo

Senegal

Graph 3Levels of the human development and gender inequality index



ACHIEVEMENTSIN 20162


SECTION TWOACHIEVEMENTS IN 20161. GENERAL PICTURE

2. ACHIEVEMENTS PER STRATEGIC AREA

2.1. Accelerating regional integration throughsustained infrastructure financing

2.2. Support for inclusive growth, food security andsustainable development

2.3. Support for businesses and governments,developing financing engineering and services

2.4. Deepening the resource mobilization process

2.5. Aligning management and governance


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1. GENERAL PICTURE

The amount of loans granted by the Bank in 2016 totaledXOF500.6 billion, including XOF433.8 billion in mediumand long-term loans and XOF51.9 billion of short-termfinancing.

Financing per sector during the year in review is brokendown as follows:

Direct loans during the year, amounting to XOF451.6 bil-lion, accounted for 90.2% of approvals. These will contri-bute to the implementation of new investment projectsand the financing of business operating cycle.Thus, investment projects financed by the Bank will faci-litate the development of agricultural production, moder-nization of infrastructure, roads and airports, promotetourism and the hospitality industry, and strengthen as

well energy generation capacity, especially through theinstallation of renewable energy facilities (solar energy,hydropower).

Refinancing facilities stood at XOF36.2 billion, or 7.2%of financing for the year. These loans are intended to in-crease the capacity of products designed for SMEs or forthe financing of social housing projects. Equity invest-ments stood at XOF12.8 billion (2.6%) as a result of in-creases in the equity of CRRH-UEMOA and twoinvestment funds.

New loans granted bring the Bank's total net commit-ments to XOF4,409.4 billion as at 31 December 2016 co-vering 1,044 development projects.

Approvals Number of %

(XOF'bln) operations Approvals

NON-COMMERCIAL SECTOR (a) 261.0 25 52.1

COMMERCIAL SECTOR (b = i + ii) 239.6 25 47.9

Commercial public (i) 113.4 8 22.7

Private (ii) 126.2 17 25.2

TOTAL (a+b) 500.6 50 100

Table 1LOAN APPROVALS IN 2016 (long, medium1 and short-term)

1 including equity investments













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Loans granted for regional economic integration projectstotalled XOF1,435.6 billion, for 326 operations, or 32.6%of commitments as at the end of December 2016.

As part of the implementation of the Regional initiativefor sustainable energy (IRED), 14 power projects havebeen funded since 2010 in the form of FDE loans, makinga total of XOF229.7 billion. Disbursements stood atXOF94.7 billion, representing a 41.2% disbursementrate. A subsidy in an amount of XOF5.7 billion was alsogranted to the WAEMU Commission to finance activitiesunder the regional programme for energy saving.

With regard to financing arrangement, five new fundrai-sing mandates were signed with a view to mobilizing atotal of XOF155.3 billion on behalf of various clients.

The Bank's financial advisory activity saw the signing, inJune 2016, of a mandate with the Government of Gui-

nea-Bissau to support a diagnostic survey of the country’scashew nut sub-sector. BOAD has also continued its ad-visory services to the Government of Niger for the awardof the Gaweye Hotel management concession.

In terms of support for project preparation, an amountof XOF2.2 billion was spent on feasibility studies, bringingthe total of this category of financial assistance toXOF30.8 billion at the end of December 2016. The acti-vity aims to improve the generation capacity of publicprojects.

Disbursements made as at 31 December 2016, stood atXOF310.0 billion as against XOF318.8 billion in 2015.

At the end of 2016, cumulative disbursements totalledXOF2,763.1 billion, corresponding to a total disburse-ment rate of 62.7% (cumulative disbursements/ cumula-tivecommitments).













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%

7 3

90

0

00

00

00

00

00

00

00

00

2015 20162014201320122011201020092008200720062005

Graph 4DISTRIBUTION OF LOAN APPROVALS PER TYPEOF FINANCING IN 2016

Graph 5CHANGES IN NET CUMULATIVE COMMIT-MENTS OF BOAD (in XOF’bln)

Refinancing facilities36.2 bln Equity

investments12.8 bln

Direct loans457.6 bln

958,5 1051,61143,5

1243,5

1483,3

1848,4

2223,6

2712,0

3292,3

3602,33878,5

4409,4













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Over the period, the 2015-2019 Strategic Plan served as the reference framework for the Bank's operations.Below is a brief summary of the main actions carried out, based on the strategic areas of the plan.

The Bank continued its contribution towards developmentand implementation of regional initiatives or programs.

In the area of infrastructure, a financing of XOF158.1 bil-lion was granted to governments or private operators forthe development of regional transport or energy facilitiesin Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Nigerand Senegal.

A. DEVELOPMENT AND INTERCONNECTION OF TRANSPORT INFRASTRUCTURE

Loans granted to the road transport sub-sector totalledXOF75.0 billion for the rehabilitation and asphalting of atotal of 502.5 km of roads to facilitate movement of peo-ple and goods across the region.

In the aviation sub-sector, the Bank contributed XOF5.1billion toward the expansion and upgrading of facilitiesat the Félix Houphouët-Boigny international airport inAbidjan, especially with the construction of hangars anda parallel taxiway, aimed at easing the traffic flow. Theoverall objective is to improve the operations of the Abid-jan international airport, which integrates quality and sa-

fety in order to handle a traffic of two million passengersby 2020.

B. STRENGTHENING THE ENERGY INFRASTRUCTURE

Loan facilities totalling XOF78.0 billion were devoted tothe implementation of regional power projects. Thesemainly involved the following operations:

- A project for an additional capacity of 20 MW to the100 MW Gorou Banda thermal plant in Niger;

- Three projects for the construction of 127.7 km-long225 kV power interconnection lines between Guineaand Mali, and 1,677 km across the OMVG countries.The two OMVG projects were financed with FDE loansgranted to Senegal and Guinea-Bissau under IRED.These power projects will particularly reduce the costper KWh sold and secure power supply to the countriesconcerned;

- The construction and operation of a 44 MW hydropo-wer plant at Singrobo-Ahouaty in Côte d'Ivoire under a“Build-Own-Operate and Transfer (BOOT)” arrange-

2.1. ACCELERATING REGIONAL INTEGRATION THROUGH SUSTAINED INFRASTRUCTURE FINANCING













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ment. This project will contribute, among other things,to better coverage of domestic demand and address thepower export commitments to neighboring countries;

- The second component of Phase 1 of the RenewableEnergy and Energy Efficiency Development Project (PRO-DERE), involving the supply and installation of approxi-mately 4,050 solar street lamps as well as 130 mini solarphotovoltaic plants of different capacities supplying pu-blic lighting and pumping systems for the supply of drin-king water in member countries of the Union. The overallobjective of the project, also financed with funds fromthe FDE, is to improve the rate of electrification in themember countries, as part of the IRED initiative. An ad-ditional 300,000 people will be able to access electricity.

The project will also achieve an energy mix with 82% re-newable energy, which will help reduce greenhouse gasemissions in the region (around 12,725 tons per year).

C. IMPLEMENTATION OF REGIONAL STRATEGIES AND PROGRAMMES

The Bank has continued to support the organization ofevents under the ECOWAS Community DevelopmentProgramme (CDP: preparation of a donor roundtableconference on financing), the implementation of variousregional programs, including PER II, IRED and the foodsecurity program (see Inset 1).

Working sessions have also been held with the WAEMUCommission on the possibilities of BOAD's support for aproject aimed at setting up a network of specialized high-level care centers in the Union. Similarly, the Bank hasparticipated in the activities of the Regional IntegrationCommittee, to promote synergy of action among inter-governmental organizations in West Africa.













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The state of progress of each pro-ject is as follows:

1. Regional Economic Program(REP) 2012-2016: BOAD loansfor projects under the PER IIstood at XOF241.8 billion, ofwhich XOF240.1 billion weregranted in the form of directloans for 19 projects, whileXOF1.7 billion was granted forfour feasibility studies.

The Bank participated in the va-rious phases of the ongoing pro-cess to establish a multi-donortrust fund to support PER pro-jects. The fund is scheduled to becreated in 2017.

2. Regional Initiative for SustainableEnergy (IRED): In an attempt tofind a lasting solution to theenergy crisis that has hit theWAEMU region over the last de-cade, the highest authorities ofthe Union adopted the IRED, with

a view to: (i) increasing the elec-trification rate from 17% in 2007to 80% in 2020 and to 100% by2030, (ii) reducing the averageprice of electricity to XOF30/KWhby 2030, (iii) increasing the shareof renewable and sustainableenergy (hydro, solar, biomass,wind) in the energy mix from36% in 2007 to 82% by 2030.

This initiative was made operatio-nal through the FDE's project im-plementation mechanisms. TheFDE was originally allocatedXOF250 billion for the financingof the emergency phase. BOADmanages the FDE funds.

.As at 31 December 2016, the Fundhad granted loans to 14 projects in-volving a total amount of XOF229.7billion, fully disbursed from theFund's initial allocation. Disburse-ments made stood at XOF94.7 bil-lion, representing a 41.2% rate ofdisbursement.

Actual implementation of the pro-jects is follows:

i) Completed works: two projects (1in Burkina Faso and 1 in Senegal),

ii) Ongoing works: six projects (1 inMali, 2 in Niger, 2 in Côte d'Ivoireand 1 in Togo),

iii) Commencement phase: two pro-jects (1 in Benin and 1 in Senegal),

iv) Contract award and controlphases: three projects (1 in Gui-nea-Bissau and 2 under the in-terconnection of power grids inOMVG member states, to whichSenegal and Guinea Bissau be-long).

There have been improvements incommitment, disbursement and im-plementation of funded projects.There is however the need to conti-nue the ongoing actions and strive toaccelerate project implementation.

BOAD also continued the process ofcreating a start-up fund for private

INSET 1

State of progress of major regional integration projects involving BOAD

In 2016, the main integration programmes and projects involving the Bank include: (i) Regional Economic Program(PER); (ii) Regional Initiative for Sustainable Energy (IRED); (iii) Food Security Program; (iv) ECOWAS CommunityDevelopment Program (CDP); (iv) 11th EDF Regional Indicative Program (RIP).













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investment, especially in the energysector.

3. Food security programme: in2016, the Bank financed six (6)food security projects, with atotal of XOF40.5 billion, accoun-ting for 8.9% of the commit-ments for the year. The Bankparticipated in the WAEMU mee-ting of food security experts,held in Niamey from 8 to 10 Oc-tober 2016. Moreover, six (6)projects identified by the institu-tion, together with the WAEMUCommission, are being assessedfor allocation of an amount ofXOF10 billion in subsidy, obtai-ned as budget aid from France

.

4. ECOWAS Community Develop-ment Programme (CDP): BOAD,as a member of the CDP resourcemobilization committee, tookpart in a technical meeting orga-nized by the organizing commit-tee of the High-level Conferenceand Roundtable for the financingof the CDP, in May 2016. TheBank also allocated XOF20 mil-lion to the ECOWAS Commis-sion, as part of its financialcontribution toward the organi-zation of high-level regionalconference on domestic finan-cing of regional developmentand the CDP Donor Roundtable.The two events will be held inthe first quarter of 2017.

5. The 11th EDF regional indicativeprogramme (RIP): BOAD tookpart in the regional workshop ofexperts from WAEMU, ECOWAS,Mauritania and regional institu-tions, held from 6-10 June 2016in Ouagadougou. It also tookpart in the 3rd meeting of theStrategic Advisory Committee(COS) of the RIP-11th EDF, heldon 23-24 June 2016 in Lomé.BOAD is engaged in a process ofaccreditation for the indirect ma-nagement of funds from the Eu-ropean Union. To this end, it willundergo the "Audit of the seven(7) pillars”.

INSET 1 (CONTINUED)













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2.2 SUPPORT FOR INCLUSIVE GROWTH, FOOD SECURITY AND SUSTAINABLE DEVELOPMENT

A. DEVELOPMENT OF BASIC INFRASTRUCTURE

The Bank granted funding to the tune of XOF163.2 bil-lion to support irrigation and surface water mobilizationprojects, urban roads and sanitation, urban and ruralelectrification, and water projects.

A total amount of XOF40.5 billion was approved for sixirrigation and surface water mobilization projects inBenin, Burkina Faso, Mali and Togo. These projects aredesigned to collect water for year-round irrigation, land-scaping and/or rehabilitation of about 5,229 hectares offarmlands, for the development of agribusiness and in-crease in agricultural production (cereals, vegetables,etc.), pastoral and fisheries. These investments are expec-ted to make a significant contribution to the achievementof food and nutrition security, and reduce poverty, createjobs and diversify incomes as well.

Funded projects are also expected to result in the instal-lation of rural infrastructure, particularly those that im-prove access and facilitate the transportation of farmproduce (rural roads, transhumance corridors, etc.), sup-port or marketing (storage, packaging).

Other special forms of assistance have been lined up toimprove the living conditions of the populations as partof the implementation of these projects. These includethe establishment of a loan scheme and farming advisoryservices, as well as construction of small potable watersupply systems.

Under urban roads and sanitation, five projects were fun-ded for a total of XOF85 billion. These include upgradingof the Tansoba boulevard in Burkina Faso, paving andconstruction of street drains in 20 communities in Benin,rehabilitation and upgrading of the Buba-Catió road inGuinea-Bissau (phases 1 & 2), as well as the widening ofthe Boulevard de Marseille in Abidjan (Cote d'Ivoire).About 106 km of roads, 66,000 linear meters of pavedstreets and 3,360 linear meters of drainage will beconstructed, contributing to the improvement of the li-ving environment and traffic conditions in the affectedcities in the region.

In the area of urban and rural electrification, two ruralelectrification projects, one by photovoltaic systems inTogo and the other by hybridization in Niger received fi-nancial support to the tune of XOF18 billion. The objec-tive of these operations is to contribute to the regularpower supply, improve the rate of electrification acrossthe country, increase the access of rural households toelectricity, including through the promotion of renewableenergy.

The Bank also financed two other power projects in Maliand Senegal involving an amount of XOF14 billion, witha view to increasing the power generation capacity ofthese countries.

With regard to access to safe drinking water, a loan faci-lity of XOF5.6 billion was granted for a water supply sys-tem rehabilitation project at Parakou and its environs inBenin. The project is expected to improve the supply of













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safe drinking water with an additional production capa-city of 28,600m3/day and increase service supply to 90%by 2024 up from 72% in 2014.

B. SUSTAINABLE DEVELOPMENT

In the area of environmental governance and greengrowth development project financing, the Bank conti-nued to implement its 2015-2019 environment and cli-mate strategy. Thus, environmental and social aspectshave been systematically incorporated into all projectssubmitted for financing by the Bank.

New procedures and environmental standards have beenimplemented and workshops as well as training on theintegration of climate issues in the Bank's policies andprocedures for environmental assessment have beenheld, in order for the Bank staff, particularly those in theoperational departments to be able to incorporate them.

With technical assistance from the EIB, the Bank is gra-dually implementing control procedures and mechanismsto ensure the integration of environmental, social and cli-mate aspects in project design.

Moreover, following the assessment by the AdaptationFund's accreditation panel, which concluded that BOADmeets its fiduciary standards and requirements to safe-guard environmental and social standards, the Fund'sBoard, at their meeting held on 20 June 2016, agreed tore-accredit the Bank as a regional implementing entity fora new term of five (5) years.

Similarly, at its 14th meeting held at Songdo (in SouthKorea) from 12 to 14 October 2016, the Board of Direc-tors of the Green Climate Fund approved BOAD's accre-ditation as regional implementing entity formedium-sized projects/programs, ranging from US$50million to US$250 million.

The Bank has continued with the required procedures tooperationalize its accreditation with the Adaptation Fund(AF) and the Global Environment Facility (GEF). Activitiescarried out in this regard include the preparation and sub-mission of projects to the above-mentioned facilities, witha view to obtaining grants. Funding to the tune ofUS$12.5 million have already been approved.

Similarly, the Regional Collaboration Center (RCC), anagency created under the United Nations FrameworkConvention on Climate Change (UNFCCC), has suppor-ted the Bank’s activities, particularly through the mobili-zation of funds under climate finance for thedevelopment of carbon projects and implementation ofthe Paris Agreement on Climate (COP21)

In terms of mobilization of resources from climate fi-nance, a partnership was established with the « Renewa-ble Energy Performance Platform », an initiative by UNinstitutions for the financing of preparatory studies forrenewable energy projects initiated by the private sector.An “Energy efficiency-renewable energy” credit facilityfor BOAD is also under negotiation with support from theRCC. Discussions are also underway, together with theBank’s organizational units to mobilize resources throughthe issuance of green bonds













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Assistance from the RCC, as part of efforts to promoteClean Development Mechanisms (CDM), resulted in theprogress of ten programmes and projects towards an ad-vanced stage of the CDM project cycle. The centre conti-nue to provide advisory services to BOAD on carbonprojects appraised for member countries.

As part of the implementation of the Paris Agreement onClimate, the RCC is committed to supporting WAEMUmember countries in their nationally intended determi-ned contributions (NIDC). In this regard, capacity building

actions were organized for stakeholders in the region onvarious themes, including the carbon market mechanismand the mainstreaming of renewable energy in theirenergy policies.

Finally, the implementation of the technical landfill centre(CET) in Lome, an innovative project, set up in 2014 withfunding from BOAD, AFD and the European Union, is on-going. The sod-cutting ceremony was held in October2016 (see inset below).













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INSET 2

Technical Landfill Centre (CET) of Lome (Togo)

Solid waste management in manyAfrican cities, particularly in theWAEMU region, is a major concernfor the populations as well as publicauthorities.

To this end, BOAD made a commit-ment, together with AFD and theEuropean Union, to construct a tech-nical landfill center in Lome to rein-force waste treatment facilities andimprove hygiene and living condi-tions of the target populations.

The project is located at Aképé, about15 km from Lomé, while the Mana-ging Committee of Lome (TownCouncil) is the project manager.

The President of the Republic ofTogo, H.E. Faure Gnassingbé cutthe sod for the commencement ofthe project in October 2016, accompanied by Mr. Manuel Valls,

then Prime Minister of France on of-ficial visit to Togo.

This innovative project will facilitatethe integration of waste manage-ment into a single circuit comprisingpre-collection from households, col-lection from assembly points (dum-ping grounds), transportation andfinal landfill activities. It will also be-nefit the recycling sector.

The project implementation willtherefore:

- Significantly reduce uncontrolleddumping and preserve the livingenvironment of certain populations;

- Sequester approximately 3,636tons of methane, equivalent to80,000 tons of CO2, through theoperation of a landfill biogas reco-very and flaring unit;

- Produce 60,000 tons of alterna-tive fuels, which can substituteabout 35,000 tons of mineral coalat the clinker plants.













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2.3. SUPPORT FOR BUSINESSES AND GOVERNMENTS, DEVELOPING FINANCING ENGINEERING AND SERVICES

A. PROMOTING PUBLIC-PRIVATE PARTNERSHIPS

The Regional Private-Public Partnership Project Develop-ment Unit (URDPPP) set up in January 2014, upon the di-rectives of the Heads of State and Government of theUnion, is in its operation phase and has began implemen-tation of its activities. During the year, it carried out variousactions, including: (i) participation in various regional pro-jects, (ii) promotion of decision-making tools, (iii) capacity-building for government agencies, iv ) conduct of projectidentification missions in the member countries.

As part of participation in regional projects, the unit tookpart, as a member of the PPP Working Group (WG/PPP),in the workshop to validate the report on the sub-regionalstrategy for the promotion of PPPs, held in Ouagadougoufrom 29 to 31 March 2016. The unit also participated inthe second validation workshop held in Ouagadougoufrom 18 to 23 July 2016 on the proposed community di-rectives on PPPs. It also organized two sessions for the Pu-blic-Private Partnerships Committee, with a view to sharingthe experiences of its respective members, disseminatingthe mechanisms developed and helping to build the capa-city-building of public project holders, for the implemen-tation of PPP projects.

The URDPPP, as a partner of the CREPMF, provided assis-tance in the review of regulations governing the regionalfinancial market, in order to address factors that hinder themobilization of resources for PPP projects in this market.

In term of promoting decision-making tools (methodolo-gical and analytical tools), the Unit has completed the de-velopment of its financial model for benchmarking withsupport from an international firm. Training sessions areunderway to introduce national PPP Units, as well as mem-bers of the Public-Private Partnerships Committee (CO-PPP), to the application of the model. It has also finalizeda draft methodological guide, which was submitted to thenational PPP Units of WAEMU member countries for consi-deration.

As part of efforts to collaborate with partners from themember countries, the unit carried out missions to the Mi-nistry in charge of Investment Promotion and Private Sectorin Mali, and the Public-Private Partnership Support Unit ofNiger. This mission was to provide advice and expertise forthe drafting of various PPP documents (strategies, laws andimplementing decrees). Capacity building sessions for mi-nistries involved in PPP projects were also facilitated.

B. SUPPORT FOR THE DEVELOPMENT OF INDUSTRIES ANDEMERGENCE OF REGIONAL BUSINESSES

As part of efforts to support the development of indus-tries and the emergence of businesses, seven direct loanstotalling XOF 90.5 billion were granted. The targetedoperations included the modernization of the ginning ca-pacity of the Malian Textile Development Company, theconstruction or renovation of two 5 -star hotels in Bur-kina Faso and Senegal, the expansion of two power













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The level of financial inclusion inWAEMU has improved significantly inrecent years. Indeed, the strict ban-king rate more than doubled, from7.5% of the adult population (popu-lation aged 15 years and above) in2007 to 15.7% in 2014. The expan-ded banking rate stood at 34.5% in2014 up from 16.6% in 2007. Thisprogress was thanks to the contribu-tion of the microfinance sector andthe massive improvement in financialservices via mobile telephony.

Despite this progress in access to fi-nancial services, WAEMU countriesare still facing many challenges. Thesechallenges have to do with: (i) thecontinuous adjustment to the regula-tory framework, (ii) soundness andconsolidation of the microfinance sec-tor, (iii) expansion of the distributionnetwork and payment via mobilephones, (iv) diversification of financialproducts offered by banks and decen-tralized financial systems (DFS), insu-rance companies and postal services,(v) the involvement of the public sec-tor in the development of mobile fi-nancial services.

To address these challenges, the vi-sion of the WAEMU region, whichdraws on the regional strategy deve-loped under the leadership ofBCEAO, is to ensure "permanent ac-cess to financial services and an effec-tive use of a wide range oftailor-made products at affordablecost by the populations in the re-gion." Emphasis is placed on actionsaimed at improving the access, useand quality of financial services offe-red to SMEs as well as the most vul-nerable in the region. By 2020, 75%of the adult population of theWAEMU region should have access toa wide range of financial productsand services and at affordable costs.

On 20 September 2016, in Dakar, aregional conference was organized byBCEAO and IMF on the issue underthe theme:"Finance for all; promotingfinancial inclusion in West Africa".

The meeting served as a platform fordiscussion on issues of financial inclu-sion, factors that impede access tosuch services, as well as ways to faci-litate access of vulnerable populationsto financial services.

The discussions underscored the factthat financial inclusion plays a majorrole in the development process andin the fight against poverty and ine-quality. Therefore, there is a need topromote microfinance, digital fi-nance, particularly mobile banking, aswell as alternative finance, includingIslamic finance.

For its part, BOAD considers financialinclusion as a priority in fighting po-verty and fostering inclusive growthin its member countries. To this end,the Bank has scaled up its loans in theform of credit lines for decentralizedfinancial institutions such as the na-tional fund for inclusive finance (inTogo) and private microfinance insti-tutions such as ASUSU in Niger andKAFO JIGINEW in Mali.

BOAD, through dedicated insurancecompanies, also promotes crop insu-rance for smallholder farmers. Thisscheme was preceded and comple-mented by credit facilities granted aspart of projects funded in the areas ofrural development and food security.

INSET 3

Financial inclusion in the WAEMU region













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The Bank has also sought to promotethe development of "mobile ban-king" through the allocation of funds,particular for investments in mobiletelephony infrastructure.

Finally, as part of efforts to diversify itsfunding, and in collaboration withBCEAO and the Islamic DevelopmentCorporation, member of IsDB, BOADplans to set up a window dedicatedto Islamic finance.

At the end of December 2016, loansgranted by the Bank for financial in-clusion stood at about XOF475 bil-lion, of which XOF300 billion were

allocated to financial institutions oranalogous ones, while XOF175 billionwas allocated for the development ofmobile telephony infrastructure.

BOAD will support the implementa-tion of the regional strategy for finan-

cial inclusion developed under theleadership of BCEAO. It will do so incollaboration with contribution fromall stakeholders, particularly, themember countries.

INSET 3 (CONTINUED)

Financial inclusion in the WAEMU region













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plants in Mali and Senegal, the rehabilitation of powerdistribution networks in Senegal, and the rehabilitationof an "ICT" building in Côte d'Ivoire.

Three refinancing operations involving XOF36.2 billionwere granted to three financial institutions, to increasetheir capacity to provide tailor-made financial services toSMIs-SMEs, or to address social housing needs.

Discussions are also underway to upgrade the strategyfor private sector promotion and financing.

C. OTHER PRODUCTS AND SERVICES FOR THE PRIVATEAND PUBLIC SECTORS.

1. Innovative financing

The Bank has continued to work towards setting up awindow dedicated to Islamic Finance, with technical as-sistance from the ICD. The ICD supports BOAD using aturnkey approach, which covers all related implementa-tion actions, until the commencement of the financingactivities: i) collection of information and commencementof works under the accounting and information systemcomponents, ii) implementation of a specific governancesystem, with a dedicated ad hoc committee as the inter-face, iii) selection of products for promotion, (iv) develop-ment of modalities for the mobilization of related

financial resources, v) development of a communicationstrategy.

Subject to the approval of the Bank’s decision-making bo-dies, the assistance from ICD should enable the Bank tomake its Islamic Finance window operational, with fun-draising activities expected in 2017.

2. Short-term financing

Five loan facilities involving XOF51.9 billion were disbursed.BOAD expanded its financial services available to its borro-wers, per type of operations. Operations for the financialyear include:

• Short-term loan of XOF17.9 billion to the Malian TextileDevelopment Company (CMDT), as partial funding of itsoperating cycle. The goal was to assist the company toachieve its production targets for the 2015-2016 farmingseason, involving approximately 522,637 tons of seed cot-ton (and 219,508 tons of cotton fiber);

• Assistance to the cement industry in Burkina Faso, withthe granting of a short-term loan of XOF4 billion to oneof the country's cement factories. The goal is to partiallyfinance the importation of raw materials for the pro-duction of about 87,500 tons of cement.













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• Loan of XOF5 billion to the Road Maintenance Fund ofCôte d'Ivoire for the partial funding of its road mainte-nance program. The set objective is to contribute to aproper maintenance of road infrastructure in order toensure their sustainability;

• Loan facility of XOF10 billion to Coris Bank International(CBI), for the refinancing of the loans granted to sup-port the cotton season in Burkina Faso. The goal is toenable CBI to support the operating cycle of the mainplayers in the country's cotton industry.

• Guarantee of a short-term facility involving XOF15 bil-lion for the partial financing of gas supply to the IvorianElectricity Company.

3. Equity investments

Three operations involving a total of XOF12.8 billion werecarried. These operations involved the creation of an in-vestment fund dedicated to the development of financialservices in the Union (see Inset 4), strengthening the ope-rations of I & P Afrique Entrepreneurs-2 Fund (IPAE 2) andincreasing the share capital of CRRH-UEMOA.

4. Financing arrangements and advisory services

With respect to financing arrangement, five new fun-draising mandates were signed for the mobilization offunds totalling XOF155.3 billion:

%17

277

49

Graph 6BREAKDOWN OF SHORT-TERM FINANCING PER AREA OF ACTIVITY AS AT 31 DECEMBER 2016 (IN %)

Infrastructure

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Industry













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• XOF89.7 billion for sanitation, rehabilitation and as-phalting of roads in Senegal and Niger.

• XOF29.6 billion for the construction of photovoltaicand hydropower plants with a total capacity of 94 MWin Mali and Cote d'Ivoire;

• XOF36 billion for the rehabilitation and upgrading of abuilding for office use in Côte d'Ivoire.

Apart from these operations, processes are underwayunder the fundraising mandate to raise funds for the pro-ject to build a 90MW thermal power plant in Kayes (inMali) by ALBATROS ENERGY MALI SA. Financial closingfor the operation is scheduled for the first quarter of2017. As part of its advisory services, the Bank signed in June2016 a mandate with the Government of Guinea-Bissauto support a diagnostic surveyof the country’s cashew in-dustry. The Bank is also engaged in a process to provideadvisory services to the Government of Niger over thegranting of a management concessionof Gaweye Hotel.

Also, as part of its one-off support to governments, civilsociety organizations or other grassroots developmentpartners, the Bank was able to provide different forms offinancial assistance, involving an overall amount ofXOF160.7 million. The loans were granted to supportedactivities such as: (i) the introduction of the Master’s de-gree programme in regional integration by the WestAfrica Institute, (ii) organization of the high-level Confe-rence and Roundtable on the CDP, (iii) participation of To-golese students at the 11th Science Day organized by thenetwork of medical students from West Africa (REMAO)in Dakar), (iv) organization of the Symposium on promo-ting and investing in the hospitality industry in Togo, (v)organization in Senegal, of the African Research and In-novation Fair (SARIS), on the one hand, and on the otherhand the African Conference on renewable energy(CAFER), (vi) the organization, in Côte d'Ivoire, of theConference of the Coordination Committee for the Pro-motion and Development of African handicraft (CODEPA)(vii) the holding of the 4th Edition of the Business Deve-lopment Forum "AFRICALLIA" in Burkina Faso.













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This study identified the existence ofa real need to modernize and restruc-ture the financial sector in theWAEMU region, in light of the issuesand challenges related to the growingdemand for specialized financial ser-vices that are accessible to house-holds and businesses alike. The studyalso confirmed the need for an impro-vement in the competitiveness of va-rious players in the banking andfinancial sector, in terms of com-pliance with strict regulations. Thestudy therefore identifies the need tocreate an investment fund to providethe appropriate solutions.

As part of the implementation of thisFund, the Bank invested in the Fund’sequity an amount of XOF10 billion.Other investors include investmentfunds, pension funds, multilateral de-velopment banks, insurance compa-nies, sovereign funds and socialwelfare schemes.

The Fund is a limited partnership crea-ted under Mauritian law on limitedpartnerships. Its object includes: (i)supporting banks, financial institu-tions and insurance companies in theWAEMU region in their development,in accordance with new financial re-gulations; (ii) investing in the equity ofemerging banks and financial institu-tions; (iii) participating in the mer-ger/acquisition and restructuringoperations in the banking and finan-cial sector in the Union; (iv) promotingdiversification and competitiveness inthe financial services in the Union; (v)fostering the development of the re-gional financial market through thepromotion of new services; and (vi)promoting service that facilitate thedevelopment of the banking systemand improve access to a wide rangeof financial services.

The promotion of the Fund is consis-tent with BOAD's statutory mission offinancing development. This vehicle

will foster more economic growth inthe countries of the Union. Its impactwill be felt through a strengtheningof the operational capacity and com-petitiveness of the beneficiary finan-cial institutions, with sometimes adiversification of products and ser-vices that will accelerate the rate ofaccess to financial services.

The Fund, which is targeting a XOF100billion capital base is structured as fol-lows: (i) a capital investment fund invol-ving XOF95 billion and (ii) a technicalassistance fund of XOF5 billion.

Under the project, a local subsidiarywas created in Abidjan (Côte d’Ivoire)to manage the operations of theFund.

INSET 4

Investment fund for the development of financial services in WAEMU

In 2012, BOAD conducted a feasibility study for the creation of an investment fund for the development of financialservices in WAEMU member countries.













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The Bank has over the years made significant gains in thearea of cooperation and resource mobilization. Indeed,actions in this area have, among other things, led to thefollowing results: i) first fundraising in the internationalcapital market, with the "investment grade" rating ob-tained in 2015 and re-affirmed in 2016, ii) mobilizationof concessional loans from bilateral partners, iii) commen-cement of a mechanism to mobilize domestic concessio-nal funding with a view to financing non-commercialpublic projects, etc.

A. AGREEMENTS SIGNED IN 2016

Five agreements in respect of credit lines were signedduring the year. These covered the following operations:

a. A credit line of €40 million obtained from KfW(XOF26.24 billion), to lend to the WAEMU regionalmortgage refinancing fund, for the financing of socialhousing in the Union;

b. A credit line from the Arab Bank for Economic Deve-lopment in Africa (BADEA), involving an amount ofUS$15 million (XOF9 billion), for the financing of smalland medium-sized enterprises (SMEs) in the WAEMUregion;

c. A cash investment by the Islamic Corporation for thedevelopment of the private sector (ICD) with BOAD,involving €50 million (XOF32.7 billion);

d. A credit line from the African Development Bank(AfDB) involving an amount of €140 million, for thefinancing of the private sector in the WAEMU;

e. A special facility obtained from AFD in the form ofconcessional resources, involving €100 million, aimedat balancing the financial model under the conditionsof the concessional window between 2009 and 2014.

B. MOBILIZATION OF RESOURCES IN THE CAPITAL MARKETS

The Bank carried out two separate capital market opera-tions. It first issued bonds on the regional market,through which it mobilized XOF78.23 billion, bringing toXOF991.05 billion the total amount of loan resourcesmobilized in the domestic market since the first issue in1993.

On the international scene, the Bank successfully carried outits first Eurobond in April, involving an amount of US$750million, for a maturity of 5 years.

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BOAD has a good reputation in theregional financial market where it hasa de facto benchmark issuer status. In1993, it carried out the first regionalbond issue, thereby playing a pionee-ring role in the development of theregional capital market. The amountsraised by the Bank as at the end of2016 was XOF991 billion, or €1,511million.

The funds raised in the market will beused to finance the commercial sectorand refinance sovereign loans at mar-ket conditions. These resources areexempt from exchange and currencyrisks. However given the Bank's finan-cing needs and the relatively smallsize of the regional capital market, itis necessary to diversify the sources offunding.

Thus, thanks to its rating, the Bank inJuly 2015 took steps to hold its inau-gural bond issue on the internationalfinancial market. This initiative is

consistent with the Bank's efforts todiversify and secure its sources of funding.

For this operation, the Bank opted forthe 144 A/RegS format which gives ac-cess to the U.S. market in order (i) toexpand the investor base, (ii) extendthe maturity of the operation, if neces-sary, and (iii) improve the liquidity ofsecurities to be issued on the secon-dary market,.

Fitch and Moody's were tasked to ratethe bond issue. The Bank was given an"investment grade" rating and inconformity with the ratings given bythese two rating agencies to BOAD in2015 (and confirmed in 2016). The ra-ting were "BBB" with a stable pers-pective, or "Baa1" with a stableOutlook.

The operation was launched on 28April 2016, with the following keyfeatures :

Amount: US$750 millionIssue price: 98.927%Return: 5.75%Interest rate: 5.50%Duration: 5 years Depreciation: in fineInstalments: Half-yearly Stock exchangelisting: Luxembourg

The return on the securities was at aEuro rate of 3.83% after a currencyswap operation in order to protectthe Bank against currency risk.

The bond issue sparked strong de-mand, recording 180 subscriptions in-volving a total of US$1.8 billion. Theselected offers were from the UnitedStates, Europe including the UnitedKingdom, Asia, and the rest of theworld.

The resources mobilized strengthenedBOAD's capacity to support the regio-nal economy.

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BOAD'S MAIDEN BOND ISSUE IN THE INTERNATIONAL CAPITAL MARKET"













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C. MOBILIZATION OF INTERNAL CONCESSIONALRESOURCES

The Bank obtained approval from the WAEMU Council ofMinisters in December 2015 to establish an interest subsidymechanism for concessional financing. The subsidy me-chanism is expected to receive annual allocations frommember countries as well as organs and institutions of theUnion. It is also open to possible contributions from deve-lopment partners. A first annual matching contribution tothe mechanism, during the second quarter of 2016, en-abled the Bank to revive activities under its concessionalwindow after a suspension for three semesters.

D. COOPERATION AND PROMOTION OF PARTNERSHIPS

To further strengthen its subsidy resources, the Bank, incollaboration with the ECOWAS and WAEMU Commis-sions, held consultations with the European Union

Commission, so as to include it in the EDF 11th RIP, andmore generally, to establish close cooperation with theEuropean Union Commission.

Processes are also underway to expand the Bank's share-holding. The Bank is holding discussions with variouscountries in this regard, with the support of the Chair-manship of the WAEMU Conference of Heads of Stateand Government.

Although the results achieved in resource mobilizationare encouraging, they remain insufficient as far asconcessional resources are concerned, in view of the in-vestment needs of the member countries.

A first annual matching contribution to the mechanism,during the second quarter of 2016, enabled the Bank torevive activities under its concessional window after a sus-pension for three semesters.













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A. LEGAL SECURITY OF OPERATIONS

As part of efforts to provide legal certainty for its opera-tions, the Bank has continued to upgrade the legal frame-work for its activities. It has thus updated and adoptedvarious operational manuals for project evaluation or su-pervision. Procedure manuals have also been adopted forshort-term operations, financing arrangements, financialadvisory services or loan guarantees.

Similarly, the Bank has strengthened its system to combatmoney laundering and terror financing (AML/TF), by up-dating its policies and procedures in this area. These pro-cedures have been applied in line with WAEMU2

regulations and recommendations by the Financial ActionTask Force (FATF).

The Bank has also carried out ex-post evaluation of gua-rantees taken on operations financed in Togo and Benin,and extended it to the re-evaluation of similar guarantees.

B. MARKETING AND COMMUNICATION ACTION

Initiatives in the area of communication have been des-igned to strengthen the institutional image of the Bank,especially through interviews granted by the Bank's Pre-sident to major international media outlets, and the pu-blication of thematic articles. In a similar vein, a press tripto Côte d'Ivoire provided an opportunity for journalistsfrom the French and Pan-African media to assess the im-pact of projects financed by the Bank in key areas suchas roads, energy, industry and the food industry. In addi-

tion, local journalists were invited to visit projects fundedby the Bank in Burkina Faso, Côte d'Ivoire and Niger.

To strengthen transparency of its operations, the Bank or-ganized information seminars on its new fiduciary stan-dards in several countries. These events provided aplatform to create awareness for partners, anti-fraud or-ganizations and public opinion, about the existence ofmechanisms put in place regarding funded procurementprocesses, prevention and the fight against fraud and cor-ruption, preventing and combating money launderingand terror financing and compliance audit.

In the area of marketing, the Bank has taken steps to pro-mote its products and services by participating in inter-national fora such as the forum on hospitalityinvestments in Africa held in Lomé from 21-22 June andthe forum on infrastructure in Abidjan, from 24-26 No-vember. Advertisements were also undertaken. The Bankalso initiated an opinion poll on the financing of the com-mercial sector in the WAEMU region. The Bank's marke-ting strategy will be updated in 2017 on the basis of theconclusions and recommendations made.

C. STAFF PERFORMANCE

The Bank has continued efforts to upgrade its human re-source management policy. A target-setting and staff per-formance appraisal mechanism has therefore beenintroduced, as well as targeted individual and group trai-ning for capacity-building.

2.5. ALIGNING MANAGEMENT AND GOVERNANCE

2 See. Directive No. 02/2015/CM/UEMOA of 2 July 2015 on AML/TF.













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Staff numbers declined, following the retirement of somestaff member. A recruitment programme was developedas part of the 2015-2019 forward-looking careers andskills management plan with a view to strengthening staffand acquiring new skills. As at 31 December 2016, theBank's total staff strength was 285, including 272 opera-tional staff, 7 on secondment, 5 on leave of absence and1 technical assistant.

D. ASSET MANAGEMENT AND SAFETY OF PERSONS AND GOODS

The Bank conducted actions to rehabilitate its assets andrationalize its operating expenditure. This includes main-tenance and rehabilitation of technical facilities and theheadquarters building. As part of the construction works,other projects such as the BOAD staff quarters (includingthe leisure centre) and the back-up site in Cotonou, werebrought on board. Other preliminary studies were alsoconducted in collaboration with the Francophonia

institute for sustainable development, with a view to im-plementating an energy efficiency programme.

In January 2016, the Bank created a unit to oversee thesafety of its staff and property. The "Asset Managementand Safety Unit" has worked to strengthen existing safetyprocedures and mechanisms within the Bank. Given theemphasis placed on securing access to the country, rele-vant security regulations have been reviewed with the co-operation of authorities and subregional institutions.Moreover, a surveillance system has been introduced toprovide a sense of security in each member country.

The back-up facility set up to protect the Bank's "busi-ness data" is still in operation under the control of theITDirectorate, thereby facilitating the resumption of acti-vities in the event of a total or prolonged inaccessibilityof the headquarters. These measures are in line with thebusiness continuity plan (BCP) which the Bank reviewedat the beginning of the year.

Staff strength as Staff strength as Staff strength as at 31.12.2014 at 31.12.2015 at 31.12.2016

PROFESSIONAL STAFF 161 153 153

SUPPORT STAFF 130 127 119

TOTAL 291 280 272

Table 2OPERATIONAL STAFF OF BOAD BETWEEN 2014 AND 2016













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The BCP is under the responsibility of a decision-makingcommittee headed by BOAD President, assisted by anExecutive Committee whose secretariat is handled by theunit in charge of security. This unit is tasked with ensuringthat the BCP is operational in order to conduct a seriesof stress tests and simulations, from 2017, to guaranteethe continuation and proper execution of the Bank's ope-rations in the event of a major crisis.

E. MONITORING-EVALUATION OF OPERATIONSAND KNOWLEDGE MANAGEMENT

With regard to ex-post evaluation of projects, theBank embarked on an assessment of three (3) projects inoperation. These included two operations in Mali andanother, jointly implemented by Benin and Togo. The Mali project involved (i) the first refinancing facilityto Kafo Jiginew, then (ii) the rehabilitation of subscribednetwork and commercial management of 'Energie DuMali (EDM)'. The Togo-Benin project involved the inter-connection of power systems belonging to the Commu-nauté Electrique du Benin (CEB) and the National ElectricPower Authority (NEPA).

With regard to thematic evaluations, the final reportof an assessment of "sustainability of facilities financedby BOAD in the road transport sub-sector, from 2000 to2012", was submitted to the Board of Directors, whichapproved the same. A summary of the conclusions of theprojects is provided in Part II of this annual report.

In terms of impact assessments,the Bank received agrant from the "International Initiative for Impact Evalua-tion (3ie)", involving an amount of US$442,029(XOF261.2 million) to finance the impact assessment ofthe Special Food Security Programme (PSSA). The projectsselected for this assessment include: (i) the hydrodevelop-ment project at M'Bahiakro in Côte d'Ivoire and (ii) Phase2 Extension of the agricultural development project atMatam - in Senegal. The first batch of the relevant inves-tigations are underway

In terms of monitoring-evaluation of projects/pro-grammes, the Bank has prepared a memo on the analysisof the state of implementation and development out-comes of twelve (12) projects in the appraisal phase andfour hundred and one (401), approved and ongoing pro-jects between 2000 and 2015. A memo was also preparedon development outcomes of sub projects funded as partof the first credit facility granted by KfW, for small and me-dium-sized enterprises (SMEs). Finally, i) a "Leontief" typemodule has been introduced to analyze the indirect im-pacts of the projects, ii) and a collection system for moni-toring development outcomes of private projects.

Finally, a consolidated database of ex-post evalua-tions and recommendations from such assessmentshas been set up. This database is, among other things,intended to provide a summary of the impact of theBank's operations and improve future interventionsthrough the lessons learned and recommendations fromprevious operations.













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The Bank has also continued to operationalize itsstrategies in the area of knowledge management.As such, the Bank has focused on the implementation ofa system of monitoring, visibility analysis and "e-reputa-tion" of its activities on the internet and social media net-works. Furthermore, as part of efforts to promote WebTools 2.0 for the dissemination of digital information, theBank conducted an analysis on the relevance of using so-cial media to improve its visibility and share informationon its activities to the outside world. An organizationalapproach to this implementation has been proposed inthis regard. The Bank has also been involved in discus-sions with a view to pooling part of its documentary re-sources from various bodies or institutions in the Union.Finally, within the context of the digitization of its ar-chives, several hundreds of project documents and ope-rational studies have been digitized.

F. GOVERNANCE, CONTROL SYSTEM AND RISKMANAGEMENT

During the period, the Bank continued its efforts atstrengthening its governance and ensuring a continuousupgrade of management tools.

Internal audit and financial control: based on the pro-gramme approved by the Audit Committee, audits havebeen performed on the projects in operation, the portfolio,procurement, documentation and management of the

Resident Missions in the different countries of the Unionother than Togo. Recommendations made will help streng-then internal control and risk management.

Any acquisitions of goods and services, as well as disburse-ment of funds, have undergone compliance and regulationchecks.

Moreover, the internal audit tools are regularly updated, inthe light of changes in international standards.

Audit Committee of the Bank: the Audit Committeeheld two meetings. During the first meeting, the financialstatements for the year ended 31 December 2015, as wellas the external auditor’s report on the financial statementswere reviewed. The second meeting, held in November,adopted the revised internal audit charter, and then revie-wed the Bank's arrangements in the area of informationsystem security and the business continuity plan.

External control: KPMG-CI, the Bank's external auditor,has audited and certified with unqualified opinion the 2015financial statements of the Bank, FDC and FDE. These ac-counts have been approved by the Council of Ministers. PRICEWATERHOUSECOOPERS (PWC), incoming auditorsappointed by the WAMU Council of Ministers during itssession in December 2015, conducted a limited review ofthe financial statements as at 30 June 2016 in accordancewith the IAS 34 of IFRS.













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Ethics, prevention and fight against fraud and cor-ruption: the Bank has continued to consolidate the systemin place. Under the Staff Code of ethics, five cases of com-pliance were appraised during the period. Furthermore,sensitization session on the fight against fraud and corrup-tion have been organized for staff, civil society organiza-tions, NGOs and government agencies involved in the fightagainst fraud and corruption in member countries.

Verification of procurement contracts: procurementcontracts have continued to undergo checks and controls.These include contracts funded as part of the Bank's ope-rations or internal procurements.

Results-based management: management tools in placehave been implemented with close support to the relevantdepartments to ensure greater understanding of the pro-gramme-budget approach, based on performancecontracts and their proper assessment at the end of each

quarter, as well as for the control of the "dashboard network" application. Responsibility centres have put inplace performance management tools, to achieve the setobjectives. The overall performance of the Bank has beenmonitored especially through the production and commu-nication of quarterly reports on key performance indicators.

In terms of risk management, the Bank has continuedto manage its credit, market and operational risks. In thisregard, an assessment of the Bank's exposure to differentkinds of risk was carried out, in addition to measures takento mitigate such risks with the imposition of intervention li-mits, rating of counterparties, the issuance of a "notice ofsecond opinion" on commercial projects eligible for fun-ding, as well as through the assessment of operational risksand capital adequacy. A study has also been initiated tostrengthen the system and the risk management frame-work to comply with best practices and make the necessarychanges in the light of international standards.













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As part of its development financemission, the Bank is required, amongothers things, to:

• Ensure that its financial resourcesand income from its operations areproperly managed and that disbur-sements made, as part of its finan-cing operations, are used exclusivelyfor the purposes for which theywere granted (see Policy State-ment);

• Ensure the financial security of itsoperations by preventing the use ofits funds for purposes of moneylaundering and terror financing;

• Ensure that proposed developmentchoices are environmentally friendlyand sustainable and ensure that theimpact on the environment areidentified as soon as possible with aview to taking them into account inthe project design.

To achieve the above objectives, andin view of its accreditation to variousenvironmental funds (Green ClimateFund, Global Environment Facility, Cli-mate Change Adaptation Fund, etc.),

the Bank has implemented a set ofmechanisms, policies and procedures,inspired by best practices and interna-tional standards. These mechanismsinvolve, inter alia:

• Promotion of ethics, prevention andfight against fraud and corruption;

• Preventing and combatting moneylaundering and terror financing;

• Verification of compliance and set-tlement of grievances.

The implementation of all of thesemechanisms also helps strengthen thegovernance of the Bank.

PROCEDURES FOR THE PROMO-TION OF ETHICS, PREVENTION ANDFIGHT AGAINST FRAUD AND COR-RUPTION

This mechanism is underpinned bythree fundamental texts inspired bythe Uniform framework for the pre-vention and fight against fraud andcorruption of the Task Force on thefight against corruption in internatio-nal financial institutions, as well as the

United Nations Convention on Corrup-tion. The texts include: i) Manual ofpolicies and Procedures for the Preven-tion and Fight against Corruption andFraud (MPPCF); (ii) Manual of Investi-gation Procedures and Sanctions in theFight against Corruption and Fraud(MEPs); and (iii) Policy Manual for theProtection of Whistleblowers (MPPD).

These three texts are complementedby basic texts such as the Staff Codeof Ethics, Staff Rules and Regulations,the Bank's Articles of Association,Charter for BOAD Board of Directorsand affiliated entities, the Code ofEthics for BOAD President and Vice-President, etc.In terms of organization, the mecha-nism is implemented by four catego-ries of bodies: i) the preventive organs(human resource management,control units, etc.), ii) agencies char-ged with complaints and investiga-tions (Ethics Committee, Bureau ofinvestigations); (iii) organs in chargeof sanctions (Sanctions Bureau, Disci-plinary Committee); and (iv) appealbodies (Joint Consultative Commit-tee, Fraud and Corruption Surveil-lance Committee).

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The Bank's strategy in this area isbased on the sharing of responsibili-ties and is focused on prevention anddeterrence.

MECHANISM FOR THE PREVEN-TION AND FIGHT AGAINSTMONEY LAUNDERING AND TER-ROR FINANCING

The regulation of the mechanism isunderpinned by two texts: i) the fi-nancial security policy for the preven-tion and fight against moneylaundering and terror financing; and(ii) the manual of procedures for theprevention and fight against moneylaundering and terror financing.

These texts are inspired by DirectiveNo. 02/2015/CM/UEMOA and the re-commendations of the Financial Ac-tion Task Force (FATF), published inFebruary 2012.

The regulatory and compliance Divi-sion and the Accreditation Committeeimplement this mechanism internally.

Prior to any business relationship andduring that relationship, steps aretaken to identify and know the clientas well as its environment. The resultsof these procedures are summarizedin financial security form.

COMPLIANCE AND DISPUTE SETTLEMENT MECHANISM

This new mechanism is an indepen-dent mechanism designed to verifythe compliance of BOAD's actions toits own policies and procedures. It

also gives an opportunity for groupsof people who feel aggrieved by aproject funded by the Bank to lodgecomplaints and get possible redress.As part of the implementation of thispolicy, the Bank adopted its manualof policies and procedures for com-pliance and the manual of policiesand grievance procedures.

Issues pertaining to this mechanismare the responsibility of the Regula-tory and Compliance Division.

INSET 6













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G. UPGRADING OF THE INFORMATION SYSTEM

Year 2016 has been a year for consolidating the moder-nization of the information system infrastructure, espe-cially with VSAT interconnection, between four (4)Resident Missions and the headquarters of the Bank. Thishelped integrate the said Resident Missions into the cor-porate network, facilitating access to computer resourcesfrom the Headquarters to users in those Resident Mis-sions (messaging, autocom, etc.).

Improving the quality of the internet connectivity at theheadquarters, by setting up high speed broadband fiberoptic, has enabled the Bank to enhance the security ofits dealings with the outside world and increase the rateof availability of such connectivity.

To serve as a transitional phase to the BANKING compo-nent (core business) of the integrated SAP software, a re-design of the Banking Operations Management (GOB)application is being finalized. It involves taking into ac-count the safety standards required in this regard to en-sure a better integration of the Bank's data at the timeof the implementation of the BANKING component.

In 2016, the Bank also took steps to obtain ISO 27001version 2013 certification. A mission by the certificationauthority (AFNOR) audited the Bank in December 2016with a favorable opinion.

The revamping of the Bank's website, currently being fi-nalized, will provide better visibility for the Bank, inclu-ding a significant improvement in the English version.

H. FINANCIAL MANAGEMENT

Pricing system redesign: the pricing model had beenredesigned. The new model, which is aligned with thestandards of major international financial institutions,seeks to achieve greater flexibility in the pricing of ope-rations, while promoting greater price competitiveness ofthe Bank. During its December meeting, the Board of Di-rectors agreed for an entry into force of this new modelfrom early January 2017.

Financial position: the Bank's total balance sheet rosefrom XOF1,783.6 billion as at 31 December 2015 toXOF2,263.3 billion (+ 26.9%) as at 31 December 2016.

The Bank's financial position remains sound with a ba-lanced financial structure. At the end of December 2016,the Bank's equity accounted for about 29% of its totalbalance sheet, while the ratio of "outstandingloans/equity" (debt ratio) was about 224.9% out of a re-gulatory limit of 300%.













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The Bank's operations are characterized by the followingkey components (see Annex 13):

• A high percentage of loan products (82% of budget in-come), which constitute the Bank's main activity;

• A generally controlled expenditure of loan resources(4,14% on average for market and concessional loans);

• Net banking income stands at XOF34.1 billion as at 31December 2016 as against XOF32.6 billion as at 31 De-cember 2015.

• Prudent cash management in line is its liquidity policy;

• The continuation of a prudent provisioning policy, giventhe situation of some commercial projects.

The gross rate of deterioration of the portfolio was about2.26% at the end of December 2016, compared with2.73% as at 31 December 2015. The Bank plans to conti-nue monitoring and improving the quality of its portfolio.

The Bank's operations continue to show positive results,despite losses due to the lack of sustainable concessionalresources. Net income at end of 2016 was XOF10.5 bil-lion up from XOF8.8 billion as at 31 December 2015. Theincome recorded has increased the Bank's equity.

The Bank will continue to control its expenditure in orderto maintain an attractive rate for its loans in line with itsdevelopment finance mission.













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0

300

600

900

1200

1500

100

150

200

250

300Debt Equity Debt ratio

2016201520142013201220112010200920082007

189.7

237.8

260.2

168.5

181 197

212

145155.8

225

Graph 7CHANGES IN EQUITY, DEBT (XOF'BLN) AND DEBT RATIO



THEMATICASSESSMENT OF THESUSTAINABILITY OFROAD PROJECTS : findings and lessonslearned from loansprovided by BOADbetween 2000 and2012

Them

e of

the

yea

r



THEME FOR THE YEARTHEMATIC ASSESSMENT OF THE SUSTAINABILITY OF ROAD PROJECTS 1. REVIEW OF THE BANK’S POLICIES AND STRATEGIESIN THE AREA OF ROAD INFRASTRUCTURE

1.1. BOAD's strategic approach to the road sub-sector

1.2. Key information

2.REVIEW OF PORTFOLIO OF ROAD PROJECTS FINANCED

2.1. The predominance of road projects in BOAD's operations

2.2. Some development outcomes

2.3. Lessons learned from the portfolio review


3.1. Ex-post projects evaluations and the results obtained

3.2. Lessons learned from ex-post project evaluation


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THEMATIC ASSESSMENT OF THE SUSTAINABILITY OF ROAD PROJECTS














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As part of its development mission, BOAD givesgreat importance to the financing of road infra-structure projects. Since the start of its operatio-nal activities, over hundred of such projects havebeen funded in the member countries, represen-ting a little more than one-quarter of net liabili-ties for the period (26.4%).

As part of efforts to preserve the road infrastruc-ture of the Union, several initiatives have beenimplemented to ensure the maintenance of theinfrastructure. These include the implementationof measures such as: i) effective enforcement, bysome countries, of Regulation14/2005/CM/WAEMU on the harmonization ofnorms and procedures for template, weight, andaxle load, ii) strengthening governance and em-powering the road maintenance funds, iii)conducting ex-post project impact assessment, oriv) partial financing by the Bank, of road mainte-nance programmes in the member countries.

However, while it is true that road maintenanceis an important means of safeguarding the roadinfrastructure over the medium and long-term, itis important to emphasize that it only occurs inthe operational phase of the constructed roads.However, the sustainability of road infrastructuredepends not only on the required maintenance,but also on the conditions of design and imple-mentation of those infrastructure.

Thus, when the sustainability component of roadprojects is not taken into account in a compre-hensive manner, the project loses its effectivenessand efficiency in terms of development andcontinuity of project outcomes.

Sustainability can be defined as the quality of aninfrastructure that is likely to last. It draws on theidea of social, economic and ecological sustaina-bility. Sustainability is a vital component of deve-lopment insofar as it guarantees a continuousflow of development results, after the comple-tion of the project or during the operationalphase of the project.

To better understand the factors that affect sus-tainability of road infrastructure projects, theBank conducted a thematic evaluation, in 2015,which focused on the sustainability of road pro-jects. This mission sought to draw lessons andmake recommendations to contribute to the im-provement of the quality of the Bank's opera-tions in the area of road projects. In view of thetime required for the execution of the projects,the most recent year included in the observationwas 2012.

This summary of the findings of the survey in-cludes the following points:

- Review of the Bank's policies and strategies inthe area of road infrastructure;

- Review of the portfolio of road projects finan-ced by the Bank from 2000 to 2012;

- Findings of case studies of ex-post evaluationsof road projects executed in Benin, Mali andNiger;

- Conclusion and Recommendations.

















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1. REVIEW OF THE BANK’S POLICIES AND STRATEGIES IN THE AREA

OF ROAD INFRASTRUCTURE

Road transport is the most used means of transport inmember countries of the Union. It provides almost all ofinland transport, especially between 60% and 95% ofthe movement of passengers and goods, on a linear totalof 313,547 km network3.

Roads play a vital role in wealth creation and poverty re-duction, promoting the movement between productionand marketing areas, and ensuring the mobility of peopleto social infrastructure. However, in the absence of ap-propriate provisions to ensure sustainability during their

design, implementation and operation, road infrastruc-ture cannot significantly contribute to GDP growth andpoverty reduction.

Each member country has a transport policy or strategy,with a focus on road infrastructure. These guidelines havebeen brought together at the community level, under asynergy of action between the WAEMU Commission,BOAD and other donors, including the World Bank Groupand the African Development Bank Group.

1.1. BOAD'S STRATEGIC APPROACH TO THE ROAD SUB-SECTOR

As a community institution for development financing,BOAD identifies the road infrastructure as a priority inits policy documents. Until 2008, its interventions weregenerally classified into three key areas:

(i) Targeted actions aimed at the most vulnerable,(ii) Promoting and financing of economic integration,(iii) Support for the private sector.

3 Density of the classified road network is only of 6.72 km/100 km².

















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1.2. KEY INFORMATION

The Bank has always been concerned about the sus-tainability of all the phases of road projects it finances:from design to implementation. Five key considera-tions in ascertaining the sustainability of projects in-clude: the technical, financial, environmental andsocial, institutional and capacity-building componentsas well as ownership and sustainability of partnerships.Project impact evaluations, over the last years, have

identified many concerns about the sustainability ofroad projects funded by the Bank, while these projectswere supposed to strengthen road infrastructure ofthe Union in a sustainable manner.

The review of policies and strategies revealed that des-pite the relevance of the Bank's intervention in theroad sub-sector, there are shortcomings due to the

In 2009, the Bank's first five-year strategic plan waslaunched and has resulted in a few changes in its me-thods of intervention. Before then, and particularlybetween 2000 and 2008, the Bank's strategic ap-proach for the road sub-sector was assessed in thelight of its regional integration mission. Road projectapprovals were therefore based on regional pro-grammes (PACITR, PER, the infrastructure componentof PDMF etc.), as well as on national policy frame-works to combat poverty.

The Bank's approach, between 2009 and 2012, wasunderpinned by its 2009-2013 Strategic Plan, particu-larly through its quest to "position itself as a strategicpartner of its member countries in three priority areas:basic infrastructure, agriculture and environmentalmanagement.

Moreover, given the international financial crisis andscarce concessional resources, and in view of the re-source constraints of member countries as well as theissue of road maintenance, the Bank has increased itscommitment to involve the private sector in the finan-cing of road infrastructure. The Bank has thereforeembarked upon the promotion of public-private part-nerships (PPPs) in this sub-sector.

Finally, the Bank has contributed to the coordinationof interventions by various donors and institutions, aswell as the strengthening of cooperation through co-financing, the formulation of road infrastructure pro-grammes and, in some cases, management of subsidyfunds. Finally, the Bank has been involved in discus-sions that led to the development of an interventionstrategy in the area of transport, which takes the roadsub-sector into account.

















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lack of a strategic document on the transport sector,with a section dedicated to the road sub-sector. Thislack of explicit guidance and multi-annual program-ming has (i) affected the strategic choices of types ofroads to finance as a priority, (ii) exerted pressure onappraisal and project implementation timelines, (iii) re-sulted in a failing of financial resources, both at thelevel of the Bank and member countries, (iv) limitedthe capitalization of the lessons learned from the pro-ject impact evaluations due to an evaluation approachbased on projects taken individually and the difficultyin achieving consistency in order to understand theBank's overall intervention perspective for the sectorin question.

Moreover, the Bank has not developed a specific stra-tegy document on the road sub-sector or the transportsector, due to:

• The synergy of actions with the WAEMU Commission,and the need for flexibility in a changing environment,which required a consistency in the layout of regionalprogrammes within WAEMU and ECOWAS;

• Existence of road sector programmes in the membercountries (whose studies were funded by the WorldBank);

• Need for flexibility to quickly support projects whoseimpacts on populations are quickly felt and their im-plementation easily controlled.

This approach provides member countries with an op-portunity to source funding from BOAD for projectsthat are a priority but whose execution could not un-dergo the operational procedures of some donors;and, the target approach that helps achieve the ope-rational objectives more easily.

Furthermore, BOAD adopted a system of financing in-dividual projects on a yearly basis and per country, wi-thout a multi-annual commitment document, aspertains to the programme approach adopted by theWorld Bank Group and the African Development BankGroup. This approach is mainly due to the setbackssuffered by the Bank in terms of availability of mostlyconcessional resources.

Moreover, even in the absence of a specific strategyfor the road sub-sector, the Bank has gradually adap-ted its intervention procedures, methods and tools,and has been able to finance several projects, whichconstitute the bulk of its loan portfolio from 2000 to2012 in the area under review.

















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2. REVIEW OF PORTFOLIO OF ROAD PROJECTS FINANCED

The review highlights the large number of road projects in the portfolio, the development outcomes achieved,as well as the weaknesses of the portfolio.

From 2000 to 2012, the Bank's portfolio was dominatedby road projects (32% of net liabilities), with a high pro-portion of regional projects (53% of commitments in theroad sub-sector). This large number of projects is due tothe importance attached to the financing of road infra-structure by member countries and BOAD's interest in fi-nancing the road infrastructure as an engine for economicdevelopment and regional integration.

Below is a distribution of net cumulative commitmentspersector.

It should be noted that the annual average growth rateof net cumulative commimtnets between 2000 and 2012

was 31,52%. This sustained growth increased from year2009. In particular, the 2009-2012 period represents72% of the volume of operations from 2000 to 2012, inconjunction with the implementation of the 2009-2013Strategic Plan.

A detailed review of thirty-five (35) regional roads finan-ced by the Bank between 2000 and 2012 shows thatmore than 93% of these projects are part of communityprogrammes implemented by WAEMU and ECOWAS.This shows a very strong contribution by the Bank to theregional objectives in the regional programmes (WAEMUand ECOWAS) and reflects a high degree of relevance ofthe Bank's operations.

2.1. THE PREDOMINANCE OF ROAD PROJECTS IN BOAD'S OPERATIONS

















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%32.2

14.83.3

5.2

28.6

15.9

Graph 1DISTRIBUTION OF NET CUMULATIVE COMMITMENTS PER SECTOR FROM 2000 TO 2012

Equity investments

Rural development

Other productive activities

Energy, communication and Urban water supply

Loans for NDFIs andSME promotion

Road infrastructure

2.2. SOME DEVELOPMENT OUTCOMES

Loans granted by the Bank played a vital role in theconstruction or rehabilitation of at least 4,490 km ofroads, of which 70% are regional roads. In addition, atleast 16.2 million passengers use these roads.

With its investments, the Bank has also supported thebeautification of several major roads in the economiccapitals of member countries, with an impact on thereal estates along such rehabilitated roads.

It is worth noting that in the context of environmentaland social management plans (ESMP), the Bank has fi-nanced several supporting measures, particularly withthe drilling of boreholes to provide access to drinkingwater and strengthening of security, through theconstruction of walls around community centres(schools, health centres, etc.).

All of these actions have contributed to improving the well-being of beneficiaries, including women and children.

















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Investments in the road sub-sector generated addedvalue, representing 1.5% of the Union's GDP4. Esti-mates based on the "entry-exit" models, using socialaccounting matrices available in the Union, indicatethat an investment of XOF1,000,000 generates at leastindirect and induced impacts as follows: XOF935,194

of added value to the economy, 2 full-time jobs,XOF165,700 of tax revenue and XOF283,050 of hou-sehold consumption.5 These average overall impactsvary according to the economic structure of eachWAEMU member country.

2.3. LESSONS LEARNED FROM THE PORTFOLIO REVIEW

The Bank has co-financed several projects with otherpartners from member countries (47% of net commit-ments in the road sub-sector). The main institutions withwhich the Bank engages in co-financing activities include:AfDB/FAS, EXIM BANK of China, EBID, IsDB, BADEA,FAIR/UEMOA, OPEC Fund, the Kuwaiti Fund, AFD, etc.These co-financing activities are illustrated by the follo-wing graph.

Co-financing activities provide an opportunity for coope-ration in financing and implementing projects. It is alsoworth noting that the involvement of the private sectorin the financing of road infrastructure has been initiatedthrough two major projects (construction of the Riviera-

Marcory bridge in Côte d'Ivoire, construction of theDakar-Diamniadio highway in Senegal ), in a context do-minated by public funding. However, there is a lack of in-volvement of the private sector in the financing plans.

The portfolio review also identified a few shortcomings.Indeed, many projects face long delays before enteringtheir implementation phase or meeting the conditions fortheir first disbursements.

As at 31 December 2012, out of 90 projects in road sub-sector, 31 projects were completed and none had under-gone project completion assessment. Thus, by the sametime, no project had undergone ex-post evaluation.

4 WAEMU GDP for 20075 Impacts generated through expenditure from upstream suppliers and impacts generated by the expenditure of households working with the suppliers and project execution.

















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Since then, year-end performance evaluations have beenconducted and used to undertake ex-post project impactassessments, most of these project having already beenconsidered for this thematic evaluation case studies.

There has also been an increase in additional loans, intandem with the rise in lending in the road project sub-sector from 2009. However, the average rate of additio-nal loans is 10.58% and remains generally acceptable,given the volume of commitments of the Bank between2000 and 2012.

The Bank provides assistance for capacity-building for go-vernment agencies’ staffs in charge of the road sub-sec-tor through their IT facilities, acquisition of software andtraining to different models of project management (procurement, operations management, maintenance).

However, contracting authorities in the procurementunits of various research and control missions are not al-ways involved in such missions, at the expense of thequality of the services. Also, projects executed later thantheir scheduled implementation period or that lack thenecessary human and material resources, lose their eco-nomic benefits and financial viability.

Finally, each project financed by the Bank is subject to anenvironmental and social management plan whose im-plementation and impacts are difficult to take into ac-count during the ex-post evaluations, due to lack ofdedicated resources or funds for the ex-post evaluations.In addition, most of the government agencies in WAEMUmember countries encounter difficulties in the effectiveimplementation of the environmental and social compo-nents under their watch.

















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%

Graph 2DISTRIBUTION OF CO-FINANCING IN THE ROAD SUB-SECTOR FROM 2000 TO 2012

Other Donors 5.1

Saudi Fund 0.6

EXIM BANK 26.3

BOAD 29

FRDC 1.6

Local Bank 4.6Kuwaiti/OPEC Funds 1.5

AFD 0.6

FAIR/UEMOA 1.3BADEA 3.8

IsDB 11.8

EBID 2.4

AfDB/ADF 11.4

















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3. RESULTS OF EX-POST PERFORMANCEEVALUATION

Case studies from ex-post performance assessments areintended to address the issue of sustainability through asample of five road projects funded by the Bank and run-ning: two regional roads, a highway and two urban public

roads. After a presentation of the projects concerned aswell as some major conclusions from the ex-post evalua-tion, lessons are formulated.

3.1. EX-POST PROJECTS EVALUATIONS AND THE RESULTS OBTAINED

The five post-evaluated projects include:

• Rehabilitation of the Guidimouni-Gouré road inNiger (regional road): this project involved the as-phalting and expansion of the Guidimouni-Gouré sec-tion over a distance of 103 km, on the WAEMUcommunity road No. 2 (CU2a). Its main goal was toimprove road service in order to reduce vehicle ope-rating costs and facilitate national and regional trade.Implementation of the project cost XOF5,116 million(as against XOF5,126 M originally estimated), brokendown as follows: XOF4,865 million (95.10%) fromthe Bank and XOF251 M (4.90%) from the Govern-ment of Niger.

• Rehabilitation of the Goure-Lawandi road inNiger: the project objective was to improve road ser-vice in order to reduce vehicle operating costs andfacilitate national and regional trade. The project

therefore sought to improve the efficiency of thetransport sector and make the trunk road (RN1) linkmore competitive to foster the economic recovery ofthe affected area.

Implementation of the project cost XOF7,046 M (asagainst XOF7,125 M originally estimated), brokendown into XOF6,498 M(92.22%) from the Bank andXOF548 M (7.78%) from the Government of Niger.

• Rehabilitation and sanitation of the Avenue del’Indépendence at Bamako in Mali: the overall ob-jective of the project was to improve the living environ-ment of local communities. The total pretax cost theproject was estimated at XOF2,480 M, with aboutXOF2,200 M (89% of the total cost of the project) pro-vided by the Bank, while the Government of Mali pro-vided XOF280 M (11% of the total cost of the project).

















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• Development of access roads and crossings in Co-tonou (phase 3): the Carrefour Akossombo-Placedu Souvenir section in Benin: this section is part ofthe National Interstate road No.1 (RN1), which linksBenin to Togo and Nigeria, and is part of the commu-nity road (CU1), stretching from Dakar to Lagos. It isalso a service road for the Port of Cotonou, for vehi-cles transporting goods to countries in the hinterland(Burkina Faso, Niger and Mali). The project sought toimprove road traffic and safety of users in the city ofCotonou. It was also intended to make the Benin cor-ridor more efficient and play its role in improving roadtransport to countries in the hinterland, with a viewto making the Port of Cotonou more competitive .

Implementation of the project cost XOF11,288 M (asagainst XOF10,505 M originally estimated), brokendown into XOF5,891 M (52.19%) from the Bank andXOF5,397 M (47.81%) from the Government ofBenin.

• Street paving and drainage in the city of Parakouin Benin: the project involved the construction of8,750 linear meters of drains and rehabilitation of pu-blic utilities in Parakou and 10,980 linear meters ofurban roads. This project also involved the rehabilita-tion of public utilities and sanitation in the city Para-kou, with a view to: (i) improving the livingconditions and movement of people; and (ii) rehabi-litating flood-prone areas.

Implementation of the project involved a pre-tax costof XOF5,641 M (as against XOF5,668 M originally es-timated), broken down into XOF5,087 M (90.18%)from the Bank and XOF554 M (9.82%) from the Go-vernment of Benin.

These five projects are relevant and consistent withnational planning and programming (developmentplans of member countries, land development blue-prints, road rehabilitation programmes, etc.). Their im-plementation is justified by the poor state of sections(Goure- Lawandi section in Niger) or the improvementof the living environment of the populations.

However, the quality of some projects at their entry intothe portfolio has been affected by the lack of a logicalframework (Guidimouni-Goure regional road in Niger,Avenue de l’Independence at Bamako in Mali), lack ofconsideration for the structural nature (Guidimouni-Goure regional road in Niger) or the non-involvementof some stakeholders (Independence Avenue in Ba-mako, Mali).

In general, however, the set objectives from the outsetare met (fluidity) and the paved roads have been in agood state since their commissioning. Some of streetlighting and other facilities on these roads have howe-ver been damaged (rehabilitation of access roads andthe Cotonou crossing).

















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In terms of the effectiveness of these developmentoutcomes, it is worth noting that the projects have fa-cilitated trade, improved access to basic social services,improved the incomes and living conditions of the peo-ple and improved traffic conditions in the affected ci-ties. Some projects had an immediate impact in termsof job creation and the promotion of small and me-dium-sized businesses, as well as in the use of local ma-terials (road paving project at Parakou in Benin).However, due to lack of maintenance, the rehabilitatedfacilities have become dilapidated and used as dumpinggrounds for solid waste (Avenue de l’Independence atBamako in Mali).

In terms of efficiency, the re-evaluation of projectswith statistical information indicates a good or increa-sed economic rate of return (ERR), thus confirming theeconomic viability of the projects.

With regard to sustainability, the roads’ surfaces aregenerally satisfactory despite some amount of damage(Guidimouni-Guidiguir section and Gouré-Lawandiroad in Niger). Wastewater facilities have also beenconstructed with the best possible quality and are in agood condition. However, there are issues of lack ofmaintenance and management of solid waste (Avenuede l’Independence at Bamako in Mali, road paving pro-ject at Parakou).

Unlike other projects (rehabilitation of access roads andcrossings in Cotonou, Guidimouni-Goure regional roadin Niger), some projects such as the street paving at Pa-rakou, have resulted in the strengthening of institutio-nal capacities and collaboration between local players.

















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3.2. LESSONS LEARNED FROM EX-POST PROJECT EVALUATION

Some of the major lessons learned from the case studiesinclude:

- Road projects that have undergone impact assessmentspose no particular problems in terms of technical sus-tainability;

- The Guidimouni-Guidiguir raod section, which under-went technical changes before its implementation, isnot sustainable.

- The 60 km Guidiguir-Goure section and the 58 kmGoure-Lawandi section are in a relatively good state interms of sustainability, despite the structure of the road-way and a deteriorating road bearing capacity.

- Roads constructed with a bituminous concrete lining, haverecorded an increase in traffic and a reduction in operatingcosts, resulting in a continuous flow of benefits;

- The "solid" nature of drains in the cities must be inte-grated into the design to ensure that urban projects areenvironmentally sustainable. Similarly, road projects re-quire maintenance, monitoring and awareness, to safe-guard their environmental benefits.

- Projects in urban areas that have been analyzed are in atechnically good condition, testifying to their properdesign and compliance with the rules in their implementation;

- Interurban roads that have undergone analysis are mo-derately sustainable, probably due to the inadequaciesof the studies, implementation and the effects of over-loading of trucks.

- Road projects under review have not brought any signi-ficant changes to provide institutional sustainability forthe agencies in charge of the sub-sector;

- The implementation of projects have provided an op-portunity for hands-on training in project inspectionand supervision for the technical staff in the relevantagencies;

- Urban road projects at Parakou and Bamako havecontributed to the development of the project mana-gement capacity of agencies such as AGETUR in Beninand AGETIPE in Mali.

















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The foregoing are some of the factors that facilitate orhamper the sustainability of road projects funded by BOADfrom 2000 to 2012. As pointed out, sustainability is anoverall quality that includes (i) technical sustainability, (ii)financial sustainability or viability, (iii) environmental andsocial sustainability, (iv) institutional sustainability combinedwith a capacity-building, and finally (v) durability in termsof ownership and consolidation of partnerships.

As indicated, the sustainability of projects, such as roadprojects, is a necessity that the beneficiary countries anddevelopment partners must seek to achieve, given themany financial, environmental and social challenges andconstraints. For this reason, lessons learned have culmina-ted in the formulation of recommendations including thefollowing:

For technical sustainability

Recommendation 1:Ensure a proper design of the project through validationof the different phases of the studies;Recommendation 2:Respect the maintenance specifications and standards ofcommunity roads;Recommendation 3:Improve the project quality at its entry into the portfolioin order to reduce the volume of supplementary loans,through the funding of studies and thorough identifica-tion. These provisions will help (i) maintain the initial costof implementation and (ii) comply with the project imple-mentation schedule.

For financial sustainability or viability

Recommendation 4:Develop projects evenly in order to draw significant eco-nomic benefits.

In terms of environmental and social sustainability

Recommendation 5:Provide budgetary resources for the organizational unitsin charge of ex-post evaluation to enable them conductex-post evaluations of the environmental and social ma-nagement plans (ESMP) during such ex-post project eva-luation;

















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Recommendation 6:Ensure the inclusion of the "solid" nature of drains in thefinancing of urban projects.

Institutional sustainability and capacity building

Recommendation 7:Continue to build capacity for government agencies’staffs in member countries, through training and provi-sion of the required resources.

In terms of ownership and sustainability of partnerships

Recommendation 8:Set up a strategy to giving explicit guidance on financingof the road sub-sector and take into account the variousaspects of sustainability. This strategy could be integratedinto that of the transport sector;

Recommendation 9:Make provision, as much as possible, for the implemen-tation of the 'country programme' approach. This pro-gramming tool helps to integrate a complementaritybetween the expansion/rehabilitation or maintenance ofroad networks;Recommendation 10:Continue the creation of partnerships with private finan-cial institutions, including those in the sub-region, underpublic-private partnerships for the financing of projectsin the road sub-sector;Recommendation 11:Initiate and conduct a circular mission in all WAEMUmember countries to hold working sessions with parlia-mentarians on the procedures involved, particularly withregard to conditions of entry in force of loans and ex-postevaluations.


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ANNEX 1 : Presentation of BOAD and its organization chart as at 31/12/2016

ANNEX 2 : BOAD governing bodies as at 31/12/2016

ANNEX 3 : Main decisions of the governing bodiesin 2016

ANNEX 4 : List of loans approved by BOAD in 2016

ANNEX 5 : Profile of projects financed in 2016

ANNEX 6 : List of agreements/contracts for loans, bond guarantees, equity investments, financing arrangement and credit facilities signedin 2016

ANNEX 7 : List of regional projects financed by the Bank

ANNEX 8 : Changes in net flows of resources per country as at 31/12/2016

ANNEX 9 : Distribution of net cumulative commitments as at 31/12/2016

ANNEX 10 : Distribution of net cumulative disbursements as at 31/12/2016

ANNEX 11 : Governance of BOAD

ANNEX 12 : BOAD staff per qualification, gender, process and activity as at31/12/2016

ANNEX 13 : Financial position of the Bank as at 31/12/2016

ANNEX 14 : WAEMU key macro-economic indicators



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