Last December, France and Côte d’Ivoire signed the first tranche of the Debt Reduction-Development Contract (C2D) covering 2012-2015. Through this agreement, the amounts repaid by Côte d'Ivoire are reinjected into its economy by financing a number of development projects via grants. AFD is tasked with implementing this program in which Côte d’Ivoire’s civil society will be closely involved.
Amounts reinjected into Côte d’Ivoire’s economy
The C2D totals EUR 2.9bn for a period of 15-20-years, depending on Côte d’Ivoire’s repayment capacity. It is an original mechanism, as Côte d’Ivoire’s maturities owed to France are refinanced in the form of grants to finance projects and programs in accordance with the priorities defined by the French and Côte d’Ivoire Governments (in line with Côte d’Ivoire’s National Development Plan).
This financing supports physical and technical investments and will also strengthen the human resources and the capacity of contracting authorities (in charge of project implementation) of partner institutions.
Priority sectors for the C2D
Six priority sectors have been defined: education, training and employment, health, agriculture, rural development and biodiversity, urban development, water and sanitation, transport infrastructure and justice.
In the education sector, the C2D will finance an ambitious program for all the levels of the education system (basic education, technical education and vocational training, higher education) and will also support the National Employment Policy.
In the health sector, the focus will be on strengthening the various components of Côte d’Ivoire’s health system (developing paramedical human resources; increasing the availability of essential drugs; improving the quality of and access to maternal and infant health services…) and on family planning.
Financing for agriculture and rural development will concern the rehabilitation of rural roads, the dissemination of animal-drawn cultivation in cotton-growing areas, support to producers and the application of the land reform.
The environment component will focus on preserving parks and reserves and support for the sustainable management of forest ecosystems.
The urban development component will mainly concern two showcase projects in Abidjan (drinking water supply and the upgrading of unsafe neighborhoods), while the transport infrastructure component will focus on the rehabilitation and maintenance of roads, rural roads and engineering structures.
Finally, in the field of justice, efforts will focus on improving the quality of facilities (courts, appeal courts), training judicial staff and protecting human rights.
In addition, EUR 25m of general budget support was allocated in 2012. It has been earmarked to repay part of Côte d’Ivoire’s domestic debt. A EUR 19.1m grant has also been planned to support the steering mechanism for the C2D and finance the studies required to implement the operations.
Largest C2D ever signed
The C2D signed on 1 December 2012 (EUR 630m for 3.5 years) is exceptional by its volume and will as such be the main cooperation tool between France and Côte d’Ivoire over the next fifteen years.