The Asian Infrastructure Investment Bank (AIIB) has signed a landmark USD200 million loan agreement to finance major enhancements to the public transport system in the Republic of Benin. Co-financed with the World Bank’s International Development Association (IDA) and supported by additional investments from private partners, the project represents a total investment of USD500 million, marking AIIB’s first operation in Benin and a significant step toward advancing sustainable and inclusive urban mobility in West Africa.
The project will improve urban mobility, transport safety and access to inclusive and sustainable services along select corridors in the Grand Nokoué region, the main urban center of Benin. It involves extensive development across five communes with the aim of enhancing social inclusion, environmental sustainability and productivity – all in line with AIIB’s Infrastructure for Tomorrow (i4t) mission.
“This project aligns with AIIB’s thematic priorities, including green infrastructure and connectivity, reflecting our strong commitment to mitigate the impacts of climate change and unlock the region’s economic potential,” said Kim-See Lim, the Bank’s Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients. “Through this financing, we will be able to address critical accessibility issues, support the infrastructure for sustainable multimodal transport and build institutional capacity in areas such as governance, planning, financing, and safety.”
In addition to improving transport-sector governance and transport conditions in Grand Nokoué and supporting e-mobility programs, other project components include professionalization of paratransit operators and strengthening of road and waterway safety oversight and management, as well as capacity building and project management.
“This project represents a transformative step for Benin’s urban mobility agenda,” said Romuald Wadagni, Senior Minister of Economy and Finance of the Republic of Benin. “In line with our Nationally Determined Contributions, the Government Action Plan and the Grand Nokoué Urban Mobility Plan, we are investing in low-emission, sustainable transport solutions that will reshape how our citizens move every day. Through the development of the e-mobility sector, including electric buses, boats and motorcycle taxis, we aim to provide safer, cleaner, more efficient transport for our communities. Our partnership with AIIB reflects our shared commitment to sustainable and inclusive growth, grounded in mutual trust and a common vision for a greener, more connected Benin.”
AIIB estimates that the project will serve 270,000 daily passengers in its first phase and 360,000 in the long-term, delivering benefits to local communities through increased safety and comfort, reduced travel times and lower pollution.
With its population expected to reach 3 million by 2030, Grand Nokoué represents one of the most dynamic regions of the West African nation. In line with the Grand Nokoué Urban Mobility Plan and the Government Action Plan II, the transport system project is expected to support the net creation of 35,000 jobs through the development of the e-mobility sector, several hundred jobs in public transport services and an additional 1,000 jobs linked to infrastructure rehabilitation.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
