Envol Immobilier achieved the feat of delivering, on May 2, the first ministerial city of the new city of Diamniadio, located 35 kilometers north of Dakar, capital of Senegal. With its expertise, its technical capabilities and its regional influence, the group has signed, on September 10, 2018, an important contract with the State of Côte d’Ivoire for the construction of the university campus of the city of San Pedro . To learn more about its activities and prospects, Financial Afrik went to meet Madani Maki Tall, Chairman of the Board.
You just signed an important contract for the realization of a university in Ivory Coast, what is it?
Indeed, in the framework of the Program of Decentralization of Universities in Côte d’Ivoire (PDU) launched in 2014, our group, through its subsidiary Envol Partenariats – Ivory Coast, has just been entrusted as part of a Public-Private Partnership (PPP), the achievement of the University of San Pedro in the southwest of Cote D’Ivoire. This modern university will eventually house 20,000 students. We are proud and very grateful to the Ivorian authorities who trusted us. It is a major project for the Ivorian youth and the students of tomorrow in this great country of the West African sub-region. The implementation of this major university project will also strengthen the Ivorian Government’s policy on land use planning.
Last May, Envol Immobilier delivered the first tranche of Diamniadio’s ministerial sphere. Can you come back to this complex project, the amounts of investments and the role of the various stakeholders?
The creation of the new city of Diamniadio, through public-private partnerships, is one of the priorities of the Emerging Senegal Plan (PSE). As soon as the broad lines of this vast program were presented by the Senegalese authorities to all the private partners, we were immediately seduced by the development possibilities of this new urban center not far from Dakar. The objective is an overall coherence, which makes everything on the spot. We work there, we live there, we find the school and health facilities, recreation and a good quality of life. Thus, convinced of the relevance of this vision, Envol Immobilier Senegal responded to the call made by the Head of State Macky Sall to the private sector, proposing the realization of this ministerial sphere. I recall here that two other developers were also selected by the State of Senegal for the realization of two other spheres ministerial. (N.D.L.R. the other two developers are TEYLIUM and GETRAN).
The Ministerial Sphere built by Envol Immobilier Sénégal will house more than 1,600 civil servants. It is a work of more than 42,000 m2 built surface, turnkey. It is fully equipped and furnished, and harmoniously combines architectural aesthetics, smart buildings, interconnected networks and energy efficiency. All on 3.5 hectares.
The overall cost of the investment is 56 billion CFA Francs. Its financing was provided by Envol Immobilier thanks, in particular, to a loan of 30 billion CFA Francs granted by the Coris Bank Group. We believe that this Ministerial Sphere project is a model of success, based on the confidence of the State of Senegal to the developer that we are and the audacity of an African Bank that has kindly followed us. It should also be remembered that we have benefited from the support and advice of the Government and the administration, in particular our direct partners of the Ministry of Economy, Finance and Planning (Taxes and Customs), as well as those of the General Direction of the Urban Pole of Diamniadio and the Pink Lake and the Bati State Heritage Agency, our main contacts from day to day.
Your tranche Ministerial City of Diamniadio has been delivered in advance compared to the delay retained in the convention. What explains this speed?
Indeed we delivered the ministerial sphere with seven months in advance on the contractual period that we had with the state of Senegal. This is unusual in construction. With the particularity of Diamniadio soil, a swelling clay soil, we decided to start work before the rainy season, ie in May 2016; which allowed us to have this advance on the provisional planning. We realized the sphere with our technical partner WIETC. This renowned manufacturer built the airports of Lomé and Brazzaville, the ministerial city of Kinshasa, 10,000 housing units in Malabo, to name just a few major projects; in Africa alone. It should also be noted that in the framework of this project, and in accordance with our desire to involve local companies, we have entrusted about 60% of the work to Senegalese companies (Dieng & CO, SEREX, TECSEN SAUDEQUIP, SODACOM, AFRICA ELEVATORS, SGEQUIP, SESAM INFORMATICS, CERAM
ENERGY COM). In Dakar, we were able to surround ourselves with a world-class team, as I like to describe it, with references and skills that allow us today to offer, everywhere in the sub-region, turnkey projects. in Fast-Track mode; that is, delivered in less than 24 months.
Few Senegalese knew about Envol Immobilier before your arrival on the new city of Diamniadio. What are its references, shareholding and scope of expertise?
Envol Immobilier Senegal is a Société Anonyme under Senegalese law, with a capital of two billion FCFA. Envol Immobilier Senegal is an offshoot of the Envol Afrique group. Groupe Envol Afrique is already well established in Côte d’Ivoire, Mali, Guinea, Senegal and Burkina Faso. It operates in the processing industry, technologies, energy and telecommunications, with an annual turnover of more than 100 billion CFA francs and a workforce of more than 2,000 people. In addition, the managers of Envol Immobilier Sénégal have a wealth of experience in international institutions, in the private sector and in government action. I am proud to say that we have recruited some extremely talented young Senegalese from across the diaspora. These young people bring us freshness, innovation, creativity and a great capacity for work. By the way, I would also like to note that the Diamniadio Ministerial Project Manager is a young Senegalese 32 years old, trained in engineering schools in Senegal!
The activities of Envol Immobilier Senegal are articulated around state infrastructure (administrative buildings, universities, hospitals, roads, etc.), development of private real estate projects, and equipment manufacturing. We focus on a strategic integration of different trades to effectively manage and deliver projects, from the initial idea through design and engineering, financing, construction and equipment, as well as operation and maintenance. maintenance. One of our primary objectives is to offer optimal technical and financial solutions to our client states to enable them to get out of the trap of renting “ad vitam aeternam” and finally to become the owner of the infrastructures that house public services in particular. This is how our states can dignify their sovereign missions and offer citizens the best possible public service.
What are the technical, financial and tax characteristics of the contract between Envol Immobilier and the State of Senegal?
The project of the ministerial sphere, is supported by a Public – Private Partnership. The legal instrument used, in agreement-part, with the State of Senegal, is hire-purchase. It is worth remembering here that Envol Immobilier designed, financed and carried out the project in its entirety with the financial support of Coris Bank. For six years, Envol Immobilier Sénégal operates and maintains the ministerial sphere before its transfer to the State for a rent. I note in passing that the state has already taken possession of the buildings and the ministries are already there. Also, given the innovative financing method, risks incurred by the developer, and in the economic interest of the State of Senegal, a tax schedule, in accordance with Senegalese regulations, as well as the provisions of OHADA, has been designed and annexed to the lease-purchase agreement, in order to prevent the financial charges on the credits that would be used to finance the taxes to increase the overall cost of the project. In other words, the objective of the project’s tax regime is to neutralize the indirect cost-effects of indirect taxation on the project in order to make the cost of rent more affordable for the State of Senegal. That said, Envol Immobilier has no specificity, in terms of tax procedures, it pays its taxes and complies with its legal obligations by regularly making its declarations and the Administration exercises are right of communication and control.
In general, what does the public power gain by using types of PPP contracts rather than conventional contracts?
Panoramic 3D View of the University of San Pedro – Phase 1.
To put it simply, I would say that for an infrastructure project, the Public-Private Partnership contract is a contract whereby the private partner is responsible for all stages of the project’s implementation. He ensures the design, financing, implementation and management of the infrastructure for a fixed period, before transferring ownership to the public partner. Whereas in a conventional contract executed in the framework of the public order or the conventional tenders, the private enterprise just ensures the execution of the project already studied and its services are paid for by the project owner, so the State or its dismemberments. In the African context in particular, Public-Private Partnerships are first and foremost a solution to the public service financing constraints that our states are facing. From this perspective, PPPs are an innovative alternative mechanism for meeting the investment needs of the public authorities. Moreover, the World Bank estimates that PPPs can mobilize some $ 16 billion of investment per year, which would cover about 40% of the deficit of public investment in infrastructure in Africa. You know, some states have not built public buildings for more than 30 years. Meanwhile, the population has doubled in most countries and the number of civil servants, for example, has tripled, four or even five in some countries. Today, many states face extremely high rental charges, without ever owning these buildings. The model we propose is a pragmatic and financially sustainable solution for the states. However, I must say that beyond the question of financing, the Public-Private Partnership, if it is well studied, well negotiated and well implemented, brings economic efficiency in terms of risk transfer and maximizing the contribution of the private sector. Indeed, recourse to PPP must allow the public authorities to transfer to a carefully selected private partner, the risks that the latter is able to take better care of, while benefiting from its capacity for innovation and innovation. efficiency in the time of realization. Finally, it is important to note that a PPP contract also focuses on results. The notion of performance is central to it. It contributes to ensuring a better quality of service, all the more so as the profits for the private investor are highly dependent on that quality in the provision of its services.
What are the medium and long term objectives of Envol Immobilier in Senegal and in the sub-region?
We are very confident about the prospects for development in Africa and the subregion in particular. In Senegal, where we have our roots, the State of Senegal, through the AGPBE, has once again trusted us in selecting for the construction of the United Nations House in Diamniadio. It is a large-scale project that we are honored to be able to achieve. On this project in Senegal and the University of San Pedro in Côte d’Ivoire, we will be accompanied by the Industrial and Commercial Bank of China (ICBC), the largest banking group in China. If my information is correct, we are the first private African group that ICBC will finance directly. For the House of the United Nations, studies and works have started. The idea is to regroup in Diamniadio, the 33 UN agencies currently scattered in the city of Dakar. This new infrastructure, developed with the assistance of the large architectural firm Wilmotte & Associés, will be located in an area that meets all the security requirements established by the United Nations. The project will be delivered in 24 months. This will allow a better interaction between the different services and agencies of the United Nations and those of the Administration, but above all allow the State to reduce the rental charges relative to the accommodation of the various agencies of the United Nations system. In addition, to meet the housing needs of these United Nations officials and future residents of Diamniadio, we have decided to finance, through an investment fund (Envol Capital) that we have set up, the construction of ‘a residential city with luxury apartments, smart, sports facilities, schools, green spaces and a shopping center. All of this contributes, of course, to giving tangible content to the Senegalese authorities’ vision of turning the new urban center of Diamniadio into a real “Smart City”.
Finally, we have been approached by the governments of Burkina Faso, Gabon, Togo and other countries of the sub-region to explore the possibilities for our group to assist them in the construction of major state infrastructure. inspired in part by our achievements in Senegal. In short, we are excited about the future. It is important to show that Africans can trust Africans. We have no doubt about the possibilities that will be offered to other groups like ours as there is to do. There is really room for investors who want to register and work, seriously, in the long run. The delay in infrastructure development is real. The needs are there; the skills too. Well-crafted projects will always find adequate financing and mobilized Africans who want to make their contribution to the building.
Mr. Tall, you are a former Director of Operations of the World Bank. You were already known in the subregion for practicing under this institution. Nevertheless, some people tell you Malian, other Ivorian or Senegalese; so what are you answering?
(smile …) Indeed, I am often asked this question. I would simply answer that I am a citizen of Africa. I feel at home everywhere even if today I live in Senegal. I remember in passing that I am a direct descendant of the revered guide El Hadj Oumar Tall, in which many Africans recognize themselves and of which a good number is inspired. He was born in Senegal but disappeared in Mali after traveling all over West Africa and the East. So I think it’s difficult to stick a label and besides it does not have much interest in my opinion.
Interview by Adama Wade
