Benin-Niger Regional Transport Compact

On September 13, 2023, MCC’s Board of Directors voted to suspend MCC’s partnership with Niger.

In 2018, MCC’s board selected Benin and Niger as eligible to develop regional compacts to allow the countries to work together to reduce poverty and build inclusive, sustainable economic growth throughout their region. Strengthening regional trade is a top priority for the governments of Benin and Niger, and the Regional Transport Compact will advance this shared priority with a grant of $504 million: $202 million for Benin and $302 million for Niger, with an additional contribution of $15 million each from Benin and Niger.

The trade corridor between the port of Cotonou in Benin and the capital city of Niamey, Niger is one of the busiest crossings in West Africa, with up to 1,000 vehicles crossing per day, a high percentage of which are trucks carrying goods to market. Strengthening and rehabilitating this corridor will allow goods to flow faster and more efficiently through the Port of Cotonou, reaching additional markets in the region and beyond. The compact will include two projects: the Corridor Infrastructure Project and the Efficient Corridor Operations Project.

Financials

Compact Budget

Milestones

  • Signed:
     December 14, 2022

Compact Projects

Corridor Infrastructure Project

By improving 210 kilometers of roads in both countries, the project aims to reduce vehicle operating costs and increase travel speeds, leading to faster and more efficient transit for goods between markets and along the transport corridor. The installation of road safety infrastructure is also expected to reduce road accidents and, in turn, reduce the risk of injury and death to road users.

  • The Road Rehabilitation Activity seeks to rehabilitate approximately 210 kilometers of road across both countries focusing on 83 kilometers of road between Bohicon and Dassa in Benin and approximately 127 kilometers of road between Niamey and Dosso in Niger.
  • The Road Maintenance Activity aims to implement policy and institutional reforms to assist Benin and Niger to strengthen the planning, financing, and execution of road maintenance.

Efficient Corridor Operations Project

The project aims to improve freight and customs operations through institutional reforms that will reduce transit times on both sides of the border crossing, variability in border transit times, accident-related injuries and deaths, market inefficiencies, axle-overloading of freight trucks, and pollution along the transport corridor.

  • The Freight Sector Operations Improvement Activity will modernize axle load management and regulation, build freight sector capacity, and establish a Benin-Niger Corridor Authority to jointly manage the Corridor.
  • The Customs Border Operations Improvement Activity will improve border crossing operations between Benin and Niger to increase the fluidity of trade.

As of September 13, 2023