Feature
interventions
Areas of Intervention
The areas of intervention of the EBID are:- basic transport, energy and telecommunications infrastructure and equipment (roads, permanent structures, railways, harbour and airport infrastructure, energy production, transport and distribution infrastructure, telecommunications equipment and infrastructure);
- rural development and the environment (irrigation, floodwater control, rural water projects, agriculture, livestock raising, fishing, protection of the ecosystem, capacity building);
- social sector (vocational training, education, health, support for decentralisation, social amenities in towns);
- industry (agribusiness, mining, other industries, transfer of technology, technologic al innovation);
- services (financial services, information technology related services, engineering, hotel industry, etc.).
Conditions for intervention
Beneficiaries of EBID's interventions
EBID financial and technical assistance is open to the following:- ECOWAS Member States or their agencies;
- Public companies, private companies and mixed enterprise corporations of ECOWAS Member States;
- Local financial institutions;
- Corporate bodies from ECOWAS Member States or from foreign countries desirous of investing in the ECOWAS zone, in sectors within EBID's areas of intervention.
General conditions applicable
Currency
Loan amounts are denominated in Units of Account (UA). Exceptionally, they may be denominated in local currency if the resources are mobilised locally; Guarantees issued or demanded by EBID are denominated in the currency of the transaction guaranteed; Document processing fees, interest and other fees are denominated in the same currency as the loan, guarantee or counter guarantee.Amount
The bank's level of intervention per loan operation is fixed as follows:- Minimum amount of UA1 million;
- Maximum amount of UA10 million for national projects;
- Maximum amount of UA15 million for regional projects.
Interest rate
Interest rates charged by EBID depend on the type of project and profitability. The rates vary between 1.5% and 4% per annum for public sector projects. Interest rates for private sector projects vary between 6.5% and 12% per annum.The rates are pegged at levels that ensure EBID's financial equilibrium while offering favourable conditions to borrowers. They are reviewed periodically to reflect the Bank's financial prospects and market trends.
Commissions
Loan commitment fees vary between 0.5% and 0.75% per annum. The fee for commitment by signature is between 1.5% and 5% per annum. A document processing fee of 1% flat is charged. Other fees are negotiated on a case by case basis.Duration
The duration of loans depends on the nature of project and its profitability. Loan granted by EBID could be:- short term (0 to 2 years);
- medium term (2 to 7 years);
- long term (more than 7 years).