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Infrastructure Development Consortium Meeting in Addis Ababa 2006

The 2nd meeting agenda for the Infrastructure Consortium for Africa hosted by the African Union in June 2006, focusing on securing funding and improving infrastructure effectiveness in Africa.

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Infrastructure Development Consortium Meeting in Addis Ababa 2006

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  1. Infrastructure Consortium for Africa Hosted by the African UnionAddis Ababa, EthiopiaJune 19 & 20 2006 2nd Meeting

  2. Agenda - morning • xvcxvxvx

  3. Agenda - afternoon • xvcxvxvx

  4. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  5. Opening Message • H.E. Alpha Oumar Konaré • Chairman, African Union Commission

  6. Secretariat: staffing • Secondments: • Acting coordinator • Andrian Rakotobe (AfDB) • Experts • Yuka Hananogi - Japan (JICA) • Andrew Roberts - UK (DFID) • Guillaume Grosso – AfDB • Administrative support • Houeyda Mamia (AfDB) • Appointment of full-time co-ordinator - status • Further secondments • offered from: • EC • Russia

  7. Website

  8. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  9. ICA Members’ Progress: October 05 – June 06 • NEPAD-level Projects • NEPAD/STAP • 11 projects funded • Worth a total of • USD 764.3 M • 12 studies funded • Worth a total of USD 7.1M • Contributors: • AfDB, EC, WB, Italy, Japan, USA, UK • Country-level Projects • 60 projects funded • Worth a total of • USD 3.447 Bln • Contributors: • AfDB, EC, WB, Italy, Japan • Total = $4.24 bn • In 2004 donors spend approximately $4bn on infrastructure in Africa

  10. NEPAD level, Oct 05 – Jun 06: USD 764.3Mln (projects) • 1. EAC East Africa Trade & Transport Facilitation 199 WB • 2. EAC East Africa Trade and TR 60 WB • 3. ECOWAS Mali-Senegal South Corridor Rd constr. 9.3 Japan • 4. ECOWAS Kita-Saraya-Kedougou Rd (Mali–Senegal) 98 AfDB • 5. ECOWAS West Africa Air Transport & Security 34 WB • 6. ECOWAS Senegal River Basin Multi-Purp. Water R. 110 WB • 7. ECOWAS WAPP – Coastal Transmission Backbone 60 WB • 8. ECOWAS WAPP – OMVS Felou Hydro Power Plant 75 WB • 9. ECOWAS Transport Facilities: Indicative Regional 80 EC 10. SADC Caia Bridge over Zambezi River 25 Ita/Swe/EC 11. SADC Shared Watercourses Project 14 AfDB Country Project USDm Source

  11. NEPAD level, Oct 05 – June 06: USD 7.1 Mln(studies) Country Project USDm Source Studies • 1. EAC EATTFP-OSBP Feasibility Study 0.01 UK • 2.EAC EATTFP-OSBP Feasibility Study 0.03Japan • 3. EAC Mtwara Corridor Development Study 0.14 Japan • 4. EAC Mombassa Port Rehabilitation ncJapan • 5. ECOWASBridges along South Corridor D/Design 0.6 Japan • 6. ECOWAS OMVG Energy – Project Preparation 0.5 AfDB • 7. ECOWAS Ghana Ports Up-date of F/S 0.07 Japan • 8. SADC Nacala Corridor Feasibility Study 0.3 Japan • 9. SADC Nacala Corridor Pre Feasibility Study 2.5 Japan • 10. SADC Nacala free Trade Zone Study nc USA • 11. SADC Mozambique 4 provinces Rd pre F/S nc USA • 12. SADC Rehabilitation of Angola Ports F/S 3 Japan Note: using 1EUR = 1.25 USD; 1 UA = 1.49 USD

  12. Country level, Oct 05 – June 06: USD 3.5 Bln Country Project USDm Source 1. Benin Sanitation 25 EC 2. Benin Upgrading of Banikoara-Kandi Rd 29 EC 3. Burundi Rehab. of Hydro Infrastructure 18 AfDB 4. Burundi Public Works and Employment Creation 31 WB 5. Cameroon Yaoundé Sanitation Project 38 AfDB 6. Cameroon Rd Programme 101 EC 7. Central Africa Rehabilitation of Sanitation System 9.4 EC 8. Chad Rural WS&S 19 AfDB 9. Chad Support to Transport Sector Policy 105 EC 10.Comoros Infrastructure Rehabilitation 3.9 EC 11.Congo Reconstruction and monitoring of National Rd 59 EC 12. DRC Nsele-Lufimi & Kwango-Kenge Road Rhb. 78 AfDB 13. DRC Emergency Multi Sectoral Rhb. & Recov. 125 WB 14. Egypt Integrated Solar/Power Plant 106 Japan 15. Ethiopia Rural WS&S 65 AfDB 16. Ethiopia Road Sector Development 87 WB 17. Ethiopia Accelerated Electricity Access – Rural 134 WB 18. Gabon Local Infrastructure Development 25 WB 19. Gambia Rural Water Supply Sector 8 EC 20. Ghana WS&S Programme (Study) 1 AfDB 21. Ghana Accra Sewage Improvement 69 AfDB 22. Ghana Rehabilitation of Kumashi Teciman Rd 45 EC 23. Ghana Feeder Rds Improvement 34 EC 24. Ghana Small Town Water and Sanitation 29 EC 25. Guinea Electricity Sector Efficiency 7 WB 26. G-Bissau Multi Sector Infrastructure Rhb. 15 WB 27. Lesotho Water Sanitation Rehabilitation 44 EC 28. Liberia Emergency Infrastructure Project 25 WB 29. Madagas. Rural WS&S 76 AfDB 30. Malawi Rural Infrastructure Services 40 WB 31. Mauritania Construction of Rd Kaedi-Gouraye 83 EC 32. Morocco Motorway Construction 177 Japan 32. Morocco Sewage System 42 Japan 34. Morocco Rural Electrification3 52 Japan 35. Mozamb. Nhacangara Dam over Ponwe River 49 Italy Note: all amounts in USD, using 1EUR = 1.25 USD; 1 UA = 1.49 USD

  13. Country level, Oct 05 – June 06: USD 3.5 Bln Country Project USDm Source • 36. Mozamb. Maputo Drainage System 21 Italy • 37. Mozamb Limpopo Railway Line 7.5 EC • 38. Mozamb Beira Sanittion Project 41 EC • 39. Niger Tibiri-Dakoro & Madaoua-Tahoua Roads 33 AfDB • 40. Niger Rd maintenance 86 EC • 41. Niger Air Region 14 EC • 42. Rwanda Urban Infrastructure Development 20 WB • 43. Senegal AES Sonel Electricity Project 75 AfDB • 44. Senegal Participatory Local Development 50 WB • 45. Senegal Road Rehabilitation 77 EC • 46. Senegal Support to Urban Development 20 EC • 47. S-Leone Matotoka-Sefadu Road (Study) 3 AfDB • 48. S-Leone Transport Infrastructure Development 44 WB • 49. Sudan Emergency Multi Sectoral Rhb. & Recov. 50 WB • 50. Tanzania Local Government Support 98 WB • 51. Tanzania Kilwa Rd Construction 11 Japan • 52. Tanzania Rehabilitation of Mandela Rd 40 EC • 53. Tanzania Rehabilitation and upgrading of Rd 37 EC • 54. Tunisia Rural Water Supply 54 Japan • 55. Uganda Rural WS&S 60 AfDB • 56. Uganda Northern Rehabilitation 25 EC • 57. Uganda Reconstruction of Priority Rd 115 EC • 58. Uganda Strengthening of the Northern Rd 24 EC • 59. ACP EC Energy Facility 275 EC • 60. ACP EC Water Facility 313 EC

  14. Outcome of Project Questionnaire Questionnaire exercise on shortlisted 12 programs identified on April 11th 2006, conducted by the ICA Secretariat Information received does not paint complete picture to complete the programs, but helped identify key upcoming projects for each program. For these, we have distinguished between two situations: Projects that already have full funding commitments Projects that still have funding gaps These represent a total of 10 projects, for a total gap of USD 947 M Can we fill some of these gaps?

  15. Outcome of Project Questionnaire • Questionnaire on shortlisted 12 programs identified on April 11th 2006, • Main funding gaps identified: • EAPP-East Africa Power Market APL US$ 115 M • WAPP-APL3 Phase 1 of Inter Zonal Transmission Hub US $45 M • WAPP-Inter-Zonal Transmission Hub; Ghana System Reinforcement US$ 75 M • WAPP-Inter-Zonal Transmission Hub; Ghana/Burkina Faso/Mali Link US$ 55 M • WAPP- Inter-Zonal Transmission Hub; Cote d’lvoire/Mali/Mali Link US$ 75 M • WAPP-OMVG Power System US$ 300 M • WAPP-Nigeria-Niger Interconnection System US$ 70 M • Inga-Regional and Domestic Power Markets Development US$ 110 M • CAR/CHAD/Cameroon Corridor-Duala-Banjul and Duala-Ndjamena Road • Construction US$ 42 M • EARNP-NCTIP Road Construction US$ 60 M Which way forward? Who can commit, to what project?

  16. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  17. Working with other Development Partners India’s Support to Infrastructure in Africa Discussion

  18. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  19. Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of efforts • Power / delegation of authority issue • Weak strategies vs reform adoption • Ability to scope • Project ownership • Competing projects • Lack of lawyers / project structuring capacities • Focus on projects, not on enabling framework • Limited impact • Multiple PPFs & funds • Low awareness • Gaps in cycle • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Infrastructure effectiveness - Framing the issue Private sector Stakeholder African institutions and countries Donors Overall Framework Project Preparation Project Finance & Implementation Area of intervention

  20. Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of efforts • Power / delegation of authority issue • Weak strategies vs reform adoption • Ability to scope • Project ownership • Competing projects • Lack of lawyers / project structuring capacities • Focus on projects, not on enabling framework • Limited impact • Multiple PPFs & funds • Low awareness • Gaps in cycle • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Infrastructure effectiveness - Framing the issue Private sector Stakeholder African institutions and countries Donors Overall Framework Project Preparation Project Finance & Implementation Area of intervention

  21. Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of efforts • Power / delegation of authority issue • Weak strategies vs reform adoption • Ability to scope • Project ownership • Competing projects • Lack of lawyers / project structuring capacities • Focus on projects, not on enabling framework • Limited impact • Multiple PPFs & funds • Low awareness • Gaps in cycle • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Infrastructure effectiveness - Framing the issue Private sector Stakeholder African institutions and countries Donors Overall Framework Project Preparation Project Finance & Implementation Area of intervention

  22. Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of efforts • Power / delegation of authority issue • Weak strategies vs reform adoption • Ability to scope • Project ownership • Competing projects • Lack of lawyers / project structuring capacities • Focus on projects, not on enabling framework • Limited impact • Multiple PPFs & funds • Low awareness • Gaps in cycle • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Infrastructure effectiveness - Framing the issue Private sector Stakeholder African institutions and countries Donors Overall Framework Project Preparation Project Finance & Implementation Area of intervention

  23. Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of efforts • Power / delegation of authority issue • Weak strategies vs reform adoption • Ability to scope • Project ownership • Competing projects • Lack of lawyers / project structuring capacities • Focus on projects, not on enabling framework • Limited impact • Low awareness • Multiple PPFs & funds • Gaps in cycle • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Today’s main focus Private sector Stakeholder African institutions and countries Donors Overall Framework Project Preparation Project Finance & Implementation Area of intervention

  24. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  25. Project Preparation –Tunnel of Funds Proposed way forward SHORT TERM : Launching of pilot projects under the Tunnel scheme MEDIUM TERM : Validation of concept, generalization State of play on potential Pilot Projects

  26. Project Preparation – Options for Change Key messages Cannot be business as usual for flow of projects for financial closure to increase Resources for project preparation is a shared responsibility between countries and donors More money is needed, which will be more at risk and not always produce visible outputs Output-based solution offers many potential advantages Option 1 Collaboration of existing facilities Option 2 “One-stop-shop” Option 3 Performance partnership

  27. Innovative Financing: more and better funding for development International community has been looking for new tools to ensure sustained financing for development and the fight against poverty. Now a consensus on the usefulness of such financing. 79 countries endorsed the Declaration on Innovative Sources of Financing for Development adopted on September 14, 2005 at the United Nations. 1. Taxation - environmental, arms, currency transactions, multinational profit, global lottery 2. Bonds/pension funds – raise money on capital markets / invest

  28. Innovative Financing cont. • France • - Taxation, recently established an international solidarity contribution on airline tickets, effective from July 1, with part of proceeds going to the International Drug Purchase Facility. • African Development Bank (Annual Meetings, 2006) • - Taxation, mobilise funds from Oil Exporting countries. Countries should put at least 5% of excess revenues arising from Oil Price windfall in to a special fund to support regional infrastructure. • - Bonds/pensions, AfDB should champion this in collaboration with other key institutions, and accelerate the process of bond issues in local currencies . • UK • Bonds, International Finance Facility (IFF): bonds issued on financial markets, backed by pledges from participating governments.

  29. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  30. Agenda • 1 Welcome and Outline of the Day • 2 Commitment to identify and secure funding for 5 STAP projects • 3 Working with other development partners • 4 Improving infrastructure effectiveness – I • 5 Improving infrastructure effectiveness – II • 6 Adoption of work plan • 7 Overview of tomorrow’s energy session / AOB

  31. Agenda - tomorrow • xvcxvxvx

  32. ICA Logo

  33. Thank you

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