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TA stock-taking in the Power Sector Introduction

Catalysing Africa's Infrastructure Development. TA stock-taking in the Power Sector Introduction. Why? Background.

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TA stock-taking in the Power Sector Introduction

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  1. Catalysing Africa's Infrastructure Development TA stock-taking in the Power Sector Introduction

  2. Why? Background • ICA & US Treasury have a joint "platform” the Virtual Working Group “VWG” on which they deal with and discuss issues around private sector IPPs in Africa. The objective is to enforce the cooperation between private and public partners. The last two sessions focused on risk sharing in IPPs, leading to the outcome of TA stock-taking exercise. • VWG participants are from six African countries (Senegal, Ghana, Nigeria, Kenya, Tanzania, Mozambique), representing ministries, utilities, regulators. Furthermore there are representatives from DFIs and private sector power developers. • Public sector participants mentioned the desire for internal capacityto ensure that the government is not negotiating PPAs from a position of dependence on outside advice. 3rd VWG Session

  3. Why? Objectives • Strengthening the public sector capacities to negotiate and manage PPA and implement IPPs in the Energy Sector would help to: • Diversify the power mix and eliminate shortfalls or crisis in supply • Increase installed power generation capacity • Increase private investments, through enhanced investment climate • Outcome of the last VWG session was to start a "stock-taking of TA" in the Energy Sector to analyse previous and ongoing TA and identify TA gaps, if any. • Wherever required the ICA will recommend to mobilise further, ongoing TA that can build capacity and keep the public sector apprised of the latest developments in the area of PPPs. Virtual Working Group (VWG) Session

  4. When? Methodology & Time line • Preparation • Questionnaires • Collecting information on institutions role, bottlenecks, existing TA and capacity gaps • Please answer and return to ICA, to better prepare upcoming interviews. • Missions • GHANA Oct 18 – 22 • MOZAMBIQUE Nov 03 – 05 • TANZANIA Nov 08 – 09 • KENYA Nov 11 – 12 • SENEGAL Dec 06 – 07 • Contact via AfDB field offices. Please support us and confirm appointments for interviews. • Analysis, Results and Recommendations will be drawn after missions phase. • Presentation and discussion during the VWG Session in December Virtual Working Group (VWG) Session

  5. Ghana Botllenecks & Preliminary findings* Bottlenecks • Lack of coordination • Numerous public sector institutions involved, due to deal complexity • Poor quality of information (e.g. causes difficulties to set indicative tariffs for PPA) • No templates for bidding processes or standardized documents inaugurated • Governments guaranteeing the obligations of its parastatal utility in the first place Preliminary findings • Need for streamlined processes, standardized agreements (e.g. PPA) and benchmark tariffs • Need for a centralized IPP coordinating unit *subject to final assessment Virtual Working Group (VWG) Session

  6. Thank you ! ICA Secretariat c/o African Development Bank BP 323 – 1002 Tunis Belvedere Tunisia Emailicasecretariat@afdb.org Phone (+216) 71 10 2982 Virtual Working Group (VWG) Session

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