UK backs £1.1 billion financing package as British firms secure £330 million in Guinea and Benin contracts
The projects are being supported by £1.1 billion in financing and guarantees from UK Export Finance, the British government’s export credit agency. The £1.1 billion represents financial support for the wider projects and should not be treated as the value of contracts awarded to British companies.
In Guinea, UKEF is providing £75 million to support the construction of new primary and secondary schools across four regions. The contract has been awarded to Planet One and includes classrooms, sanitation facilities and related infrastructure.
A further £91 million will support the Guinea Regional Water Project, which will build treatment and distribution infrastructure to expand access to potable water. The project will be delivered by UK-headquartered Aqua Africa.
According to the official announcement from UK Export Finance, another £129 million will support Guinea’s La Cotiere Conakry Transmission project. The contract was secured by Elecnor and could create supply opportunities for British companies providing transmission equipment, grid technology and engineering services.
In Benin, £82 million in UKEF financing will help fund a new government administrative complex designed to bring public services together within a modern urban development.
The Benin contract was awarded to ACC UK Group Limited. British companies could participate by supplying architectural design, engineering, security systems and specialist construction services.
The programme could help Guinea and Benin improve education, water supply, electricity distribution and other public services. British contractors and their suppliers could also benefit from government-backed business opportunities in the two West African markets.
The announcement also illustrates how export credit financing works as both development finance and commercial policy. UKEF helps overseas governments and project sponsors obtain financing, but the support is tied to contracts that create business for British exporters.
The British government did not disclose the interest rates, repayment periods, participating lenders, government guarantees or delivery schedules covering all nine projects. These details will determine the eventual financial obligations assumed by Guinea and Benin.
UKEF separately increased its exposure capacity across West and Central Africa by £1.7 billion. That figure represents room to support future transactions; it is not additional money already committed to the nine announced projects.
The deals were unveiled as the fifth UK-West and Central Francophone Africa Trade and Investment Forum opened in Conakry on 20 October. The forum brought together government officials, financiers and businesses seeking investment opportunities across the region.
Source: Africabusinessinsider