The African Development Bank ( AfDB ) and the Autonomous Port of Cotonou ( PAC ) have signed a funding agreement amounting to €80 million ( US$83.8 million ) to modernize facilities and expand the infrastructure of the port in Benin’s economic capital.

The funding will help PAC to implement its master plan for 2021-2026, a five-year investment programme aimed at renovating and replacing obsolete port infrastructure, increasing its capacity, and improving its quality of service to attract more traffic.

“The signing of this agreement marks an important step in the development of the PAC and the economy of Benin, with positive knock-on effects for trade, competitiveness, job creation and social inclusion,” says Mike Salawou, director of AfDB’s infrastructure and urban development department.

PAC managing director Baart Van Eenoo says the funding will enable the creation of a 25-hectare terminal on reclaimed land and a smart, 14-hectare buffer parking area to manage lorry movements in and out of the port.

The AfDB is mobilizing €55 million plus €25 million from the Africa Growing Together Fund, a special fund supported by the bank and the People’s Bank of China.

The Canada-AfDB Climate Fund ( CACF ) is providing an additional US$18.3 million. The CACF, supported by Canada, finances climate projects in support of sustainable development and social inclusion.

This is the first private-sector infrastructure project funded by AfDB in Benin using hybrid climate finance. It will help to strengthen the competitiveness of the port, which is a key economic hub for the West African country in the Gulf of Guinea.

The Cotonou port, one of West Africa’s main platforms in the Atlantic Ocean, acts as a transit point for landlocked countries such as Niger, Burkina Faso and Mali.