This project paper concerns the approval of the Executive Directors to introduce changes to the West Africa Capital Market Development Project, for the West Africa Economic and Monetary Union (WAEMU). The proposed restructuring will help on several fronts to reach the project. Expanding the eligibility criteria for project financing under the line of credit will have two advantages: (i) bringing the program more in line with market demand by expanding the eligibility criteria of the credit line to encompass other non-road infrastructure sub-projects; and (ii) increasing the opportunity for regional integration through the financing of other non-road infrastructure projects. By extending the closing date by two years, there will be sufficient time to fully implement the reforms and successfully complete the project activities and to meet their development objectives. It is anticipated that demand for financing may surpass available funding. It was agreed that if the restructuring was completed and the International Development Association (IDA) credit was extended, Canadian International Development Agency (CIDA) would also extend the closing date of i t s trust fund to enable West African Development Bank (BOAD) to complete the technical assistance program. By restructuring the guarantee facility, Multilateral Investment Guarantee Agency (MIGA) will be able to provide guarantee to larger infrastructure projects presented by BOAD. Also, the Technical Assistance (TA) to be provided on risk mitigation will allow BOAD to move away from its traditional focus on financing public projects and help BOAD finance private infrastructure projects through diverse financing options. There are three changes: (a) expand the eligibility criteria of the LOC to (i) include other infrastructure projects in addition to roads; (ii) increase the ceiling of sub-projects be funded under the line of credit; and (iii) include cross-border projects related to food security; (b) cancel the guarantee facility; and (c) extend the credit closing date by two years from September 30, 2009 to September 30, 2011 and the IDA managed CIDA trust fund by two years to March 31, 2010.
