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COLLABORATING TO ADDRESS AFRICA’S INFRASTRUCTURE CHALLENGES by: Suresh Kantroo. March 11, 2014 10 th CII – EXIM BANK India Africa Conclave.
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COLLABORATING TO ADDRESS AFRICA’S INFRASTRUCTURE CHALLENGES by: Suresh Kantroo March 11, 2014 10th CII – EXIM BANK India Africa Conclave ANGELIQUE INTERNATIONAL LIMITED
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. • The term typically refers to the technical structures that support a society, such as roads, bridges, water supply, sewers, electrical grids, telecommunications, and so forth.
Infrastructure Scenario In India • Expanding investment in infrastructure can play an important counter cyclical role. • Under the area of the infrastructure development, projects & programs are reviewed by giving stress on pure Public Private Partnership (PPP) to ensure that the implementation does not suffer from the fund crunch. Advantages of PPP mode: • Maximizing Investment • Budgetary constraints removed • Development of standards of world class assets • Improved maintenance and management of assets • Provision of efficient services • Affordable prices through greater competition • Risk sharing
Infrastructure Scenario In India A) Power Sector • Size:Generation capacity-122GW, 590 billion units produced (1 unit = 1 Kwh). India has the fifth largest electricity generation capacity in the world-Low per capita consumption at 606 units which consists of: • Coal-fired plants constitute-57% • Hydelpower-25% • Gas based-10% • Nuclear energy-3% • Renewable sources-5%
Infrastructure Scenario In India B) Roadways: India has second largest Road network, in the world. • Total Length-3.3 Million Kms. • Carry 65% of freight & 80% passengers. • National highways constitute only 1.7% of roads but carry about 40% of traffic. • Important Development projects • The Golden Quadrilateral connects Delhi, Mumbai, Chennai and Kolkata (GQ-5846 kms of 4 lane highway) • North-South & East-West Corridor (NSEW-7142 kms of 4 lane highways) Four-laning of 12,109 kms under NHDP-III -Program for 6-laning of 6,500 kms of National Highways under NHDP- V.
Infrastructure Scenario In India C) Railways: • About 64000 kmsof rail network • Connects 7083 stations • Carry 22 million passengers & 2.50 million tones of goods everyday. • About 1.5 millions of workforce Mission 2020 of Indian Railways: • High speed rail travel. • Raising the speed of regular passenger trains from 100-130 kmphto 160-200 kmph. • To develop 50 world class stations which can be recognized internationally. • Segregating passenger and freight tracks completely.
Infrastructure Scenario In India E) Telecommunication: 3rd largest in the world & 2nd largest in Asia. • Mobile subscriber base-936.12 million. • Overall Tele- density 77.57%. • Broadband Subscriber 13.42 million. Market Dynamics: • The Indian handset market size of 200 million. • Major handset makes – Samsung, Micromax, Apple, Nokia, Sony etc.
Infrastructure In Africa • Infrastructure plays a key role in economic growth and poverty reduction. • The lack of infrastructure affects productivity and raises production and transaction costs. • Lack of infrastructure in Africa is widely recognized. • Road access rate is only 34 %, compared with 50% in other parts of the developing world, and transport costs are higher by up to 100%. • Only 30% of the population has access to electricity, compared to 70–90% in other parts of the developing world. • Water resources are underused. Current levels of water withdrawal are low, with only 3.8% of water resources developed for water supply, irrigation and hydropower use, and with only about 18% of the continent’s irrigation potential being exploited. • The Internet penetration rate is only about 6%, compared to an average of 40 % elsewhere in the developing world.
Infrastructure In Africa Africa has Potential • Africa has about 20% of the world’s land mass and 16% of its population, but only 2.5% of its gross domestic product (GDP). • Equatorial Guinea leads the continent with a per capita GDP of more than $20,000, while the Democratic Republic of Congo and Liberia bring up the rear with earnings of less than $400.
Infrastructure In Africa Africa’s Infrastructure Challenges: • Africa’s GDP growth not ALWAYS congruent with poverty alleviation. • There is growing infrastructure funding gap in all scenarios. • There is very little private sector participation in infrastructure development. • Over-reliance on external finance for infrastructure – and trade-offs on local commodities & associated lack of local finance.
Infrastructure In Africa Growing infrastructure funding gap in all scenarios Fiscal flows devoted to infrastructure • On Infrastructure SSA (Sub Saharan Africa) spend 6-12% of GDP. • Inefficiencies & Infrastructure funding gaps: Private sector financing through PPPs-Successful Case of Telecom in many SSA countries.
Infrastructure In Africa All scenarios point to the increased of energy demand by 2040 and therefore potential for growth investments and associated development Africa need to invest to energy generation • By 2040: • COMELEC will increase by 6.2% pa (additional 298GW) • SAPP will increase by 4.4% pa (additional 129GW) • WAPP will increase by 8.9% pa (additional 90GW) • CAPP will increase by 7.3% pa (additional 26GW) • EAPP will increase by 6.5% pa (additional 140GW) This shows a big investments of US$40.5b p.a. to 2040 to meet the forecast energy demand
Infrastructure In Africa Major infrastructure challenges in transport, which negatively impact on trade & regional integration are being addressed Underdeveloped transport infrastructure an impediment: • % of road networks in good condition from 4% to 90%. • Extension & maintenance problems (vehicle overloading, lack & poor management of funds allocated to road network) • Africa has highest accident rate vis-à-vis vehicles on the road • Africanrailways network has low density and different technical stds. • Maritimetransport accounts for 92-97% of Africa’s international trade (but safety and security – piracy and & robbery of merchant ships) • Underdevelopedinland waterways transport - few internationally-navigable inland waterways • Global share in air transport is very low and accounts for only 3 per cent of the global traffic
Infrastructure In Africa Gaps between net water requirements and available water resources The limits of hydropower: • Current capacity of hydropower plants (operational and under construction) is estimated to be 15,800 MW. • By 2040, it is estimated that an additional 72,500 MW will have been commissioned in the selected basins, two-thirds in the Congo basin alone. • Hydropower will represent only about 16% of peak power demand in 2040 (about 694 GW). • Even if the full hydropower potential of Africa were exploited, it would cover no more than 35.1% of the forecast demand.
Present Infrastructure Scenario In Africa Demand for information and communication technology through 2018 • Africa’s ICT sector will continue to grow rapidly over the coming decades, with the lion’s share of investment coming from private enterprise. • But if those investments are to generate the greatest possible economic benefit, several conditions must be met: • First, operators in every country must have access to intercontinental bandwidth through competitive gateways. • Second, the regional fiber optic infrastructure must be free of missing links. • Third, Africa’s countries must complete their telecommunications reforms at the national level.
“I dream of the realization of the unity of Africa , whereby its leaders combine in their efforts to solve the problems of their continent. I dream of our vast deserts, of our forests, of all our great wildernesses” ― Nelson Mandela
Angelique International Limited Partner in Infrastructure Development of Africa
OVERVIEW Established: 1996 Turnover: US $ 250 million approx An Engineering , Procurement & Construction (EPC) Company undertaking projects on turnkey basis: - Multilateral financial institution – World Bank, ADB, AfDB - Government to Government bilateral credits through Exim Bank of India - United Nations ISO 9001:2008, ISO 14001: 2004 & OHSAS 18001:2007 certified company Focus on Africa, Middle East, South Asia & South East Asia AFRICA : Projects in over 25 Countries and 21 Overseas offices Track record of more than 200 completed projects/contracts & 60 ongoing projects
SOME RECENT RECOGNITIONS The highest honor of Mali, the “Commander De L’Ordre National Du Mali” -conferred on our Late Chairman by the President of Mali in 2011 for recognition of sustained efforts for co-operation between India and Mali
SOME RECENT RECOGNITIONS Angelique awarded the “Niryat Shree” – Export Excellence Award for the year 2009-10 in the Engineering and non-metallurgical non-MSME categoryby H.E. The President of India (05 Oct. 2012)
SOME RECENT RECOGNITIONS Angelique received “Commendation for Strong Commitment to Excel” in the CII-EXIM Bank Business Excellence Awards 2012 (02 Nov. 2012)
CORE COMPETENCE Power Water Irrigation & Agriculture Industrial Projects Social Infrastructure
Glimpses of Infrastructure Projects - Energy Ministry of Energy, DR Congo 64 MW (4x16) Katende Hydro Power Project TURNKEY PROJECT US$ 168 Million
Glimpses of Infrastructure Projects - Energy Ministry of Energy, DR Congo 10.5 MW (3x3.5) Kokobola Hydro Power Project TURNKEY PROJECT US$ 55 Million
Glimpses of Infrastructure Projects - Energy Ministry of Infrastructure, Rwanda 28 MW (2x14MW) Nyabarongo Hydro Electric Power Project TURNKEY PROJECT US$ 66 Million
Glimpses of Infrastructure Projects - Energy Ministry of Mines and Energy, Burundi 2 x 10 MW (20MW) hydropower plant including sub station and transmission lines TURNKEY PROJECT US$ 77 Million
Glimpses of Infrastructure Projects - Energy National Electricity Corporation, Sudan 220 kV , Double circuit transmission line , Singa- Hawata- Gadarief - Gallabat 340 Km with 3 substations (2x 100 MVA) Design , Engineering, Supply of Equipment, Supervision, Installation and Commissioning US$ 68 MN
Glimpses of Infrastructure Projects - Energy Ministry of Mines, Energy & Water – Mali Mali - Cote D’Ivoire Interconnection Project (Transmission Line & Substation) TURNKEY PROJECT US$ 30 Million
Glimpses of Infrastructure Projects - Energy Electricidade De Mozambique, Mozambique Rural Electrification Project in Nampula, Zambezia, Inhambane & Gaza Provinces US$ 30 Million TURNKEY PROJECT
Glimpses of Infrastructure Projects - Energy Ministry of Energy, Sierra Leone Solar Street Lighting Project TURNKEY PROJECT US$ 26 Million
Glimpses of Infrastructure Projects - Water Ministry of Rural Development, DR Congo Ground Water Extraction Project Supply of Water Well Drilling Rigs, Submersible Pumps and Hand Pumps, Drilling of boreholes US$ 25 Million
Glimpses of Infrastructure Projects - Water GE PROYECTO, Equatorial Guinea Potable Water Project for 3 cities TURNKEY PROJECT US$ 10 Million
Glimpses of Infrastructure Projects - Water Ministry of Energy and Water Resources, Sierra Leone Rehabilitation of existing portable water facilities in 6 Communities TURNKEY PROJECT US$ 30 Million
Glimpses of Infrastructure Projects - ICT Ministry of Information, Communication & Technology, Swaziland State of the art Information Technology Park TURNKEY PROJECT US$ 20 Million
Glimpses of Infrastructure Projects - Transport Ministry of Economy & Finance, Niger Project Description : Supply of 81 Nos. Buses, Transport Equipment and maintenance facilities Project Scope : Supply of 8 Nos. Eagle VIP Luxury Buses, 8 Nos. Luxury AC Buses, 51 Nos. Falcon City Buses, 14 Nos. Intercity Buses, 29 Nos. trucks, 199 Nos. tractors, maintenance facilities Contract Value : US$ 16.7 Million
Glimpses of Infrastructure Projects - Transport Ministry of Transport, DR Congo Project Description : Supply of 115 Nos. Buses and maintenance facilities Project Scope : Supply of 15 Nos. Falcon City Buses, 100 Nos. Eagle Midi Buses, repair and maintenance workshop Contract Value : US$ 6 Million
Glimpses of Infrastructure Projects - Transport Ministry of Transport, Guinea Project Description : Supply of 100 Nos. Buses (70 City and 30 Intercity) and Maintenance facilities Project Scope : Supply of Falcon City and Intercity Buses and establishment of maintenance facilities at bus depot Contract Value : US$ 8.5 Million
Glimpses of Infrastructure Projects - Transport Ministry of Transport, Ghana Project Description : Supply of Railway Wagons and equipment Project Scope : 70 Nos. Mineral Wagons, track materials and testing equipment Contract Value : US$ 13 Million
“We must invest in Infrastructure Development and Rebuilding Communities to Create Job” ― Carol Moseley Braun
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