By Mustapha K. Darboe
Claim: Africa50 contract only restricts building bridge within 50km radius
Source: Gambia Government
Verdict: MISLEADING
In the last quarter of 2023, the Gambia government signed an agreement with Africa50— an investment bank established by the Africa Development Bank— to manage the Senegambia bridge. The bank will manage the bridge for a period of 25 years or until a time it recovers its $100m, with an internal return rate of $15m or 15%.
The signing of the agreement which was first published by foreign media outlets sparked criticism in Gambia. In the past few days, discussions around the bridge have resurfaced.
An economist and a government critic, Dr Ousman Gajigo, criticised the government for allowing a clause in the deal with Africa50 which bars the country from any investment in the form of bridges that takes traffic from the Senegambia bridge.
Factcheck
In January 2024, the International Monetary Fund published a report on the Gambian economy where they stated the following:
“During the concession period, no competing route will be developed until the traffic volume reaches a sustained profitability level.”
There are two significant terms in the agreement. They are Competing Bridge and Competing Route. The concession agreement with the Africa50 did bar Gambia government from building any Competing Route to the Senegambia Bridge except where Site’s annual traffic exceeds its forecast by 50% for 2 consecutive years.
A Competing Route includes any sea-faring transport including ferries, roads, rail transport or any mass transport scheme that will affect or likely to affect traffic at the Bridge.
The agreement defines Competing Bridge as any bridge 50km radius of Trans-Gambia Bridge but excluding Banjul— Barra bridge.
Conclusion
The government is right that the agreement does not prevent building of a bridge between Banjul and Barra. But the agreement prevents the Government from carrying out transportation projects including ferries and rails projects that affects traffic at the Bridge except where the annual traffic at the Bridge exceeds 50% of forecast in 2 consecutive years. Or as simply put by IMF until when “traffic volume reaches a sustained profitability level”.
Verdict: the Government’s press release is misleading
