DAKAR - CHINA has agreed to lend Senegal just over 41 million euros (S$81 million) to fund a number of public works projects, the Senegalese finance ministry announced on Tuesday.

An agreement was signed between the two countries at the Chinese Embassy in the Senegalese capital of Dakar, finance ministry spokesman Cheikh Thiam told AFP.

Around 17 million euros will be used to replace some of Senegal's ageing public bus fleet, Mr Thiam said, with a view to the vehicles being produced locally.

Some 24 million euros will finance improvements to the government's IT system, including the creation of a 'national security network' designed to facilitate operations between the interior ministry and other agencies such as the police.

In June 2007, China lent Senegal 72 million euros at preferential rates to finance similar public works projects. -- AFP