Press Release

OPEC Fund to upgrade road in Niger with US$9 million loan

04/2006 February 9, Vienna, Austria
Press inquiries:

The OPEC Fund for International Development today signed a US$9 million loan agreement with the Republic of Niger to help upgrade an important segment of National Road 27, a key route that connects the rich agricultural district of Say to the capital Niamey. The project seeks to facilitate the transportation and marketing of agricultural goods and encourage commercial exchanges between Niger and neighboring Burkina Faso.

Landlocked Niger has no rail network and depends heavily on its roads for the transportation of both freight and passenger traffic. With agriculture contributing substantially to the economy and employing the majority of Niger's labor force, the free movement of agricultural inputs and produce is critical. Although the road network is fairly adequate in size, only a fraction of it is paved and much of it is in poor condition due to lack of regular maintenance.

The project road is a 92.5-km portion of the 143-km long Niamey-Say-Tamou-Tapoa route in the southwest corner of Niger, close to Burkina Faso. It is used for transporting agricultural produce and provides the only access to one of the country's national parks. Constructed over 30 years ago, the existing earth road is badly deteriorated and includes two important bridges over the Diamongou and Goroubi Rivers. The latter was destroyed by flooding in 1998 and has never been replaced.

Under the project, the road will be widened to 8 m, laid with an all-weather bitumen surface and equipped with road markings and traffic signs. In addition, the two bridges will be reconstructed. By making transport easier, safer and cheaper, the upgraded road will improve living conditions among the local population, which numbers over 261,000. It will also promote regional integration and trade.

To date, the OPEC Fund has approved 18 lending operations in Niger. Of these, four loans were extended in support of the country's balance of payments, two financed commodity imports programs, two were given as debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, while ten others supported projects across a wide range of sectors.

Today's agreement was signed in Vienna by HE Mr. Ali M. Lamine Zeine, Minister of Economy and Finance of the Republic of Niger, and by Mr. Suleiman J. Al-Herbish, Director-General of the OPEC Fund.