AFRICAN DEVELOPMENT BANK GROUP
NEPAD-INFRASTRUCTURE PROJECT PREPARATION FACILITY
Fostering Infrastructure Development in Africa
NEPAD-IPPF SPECIAL FUND
February (2012)
Bocar Cisse
Senior Financial Analyst, African Development
Bank
AFRICAN DEVELOPMENT BANK GROUP
OUTLINE
NEPAD IPPF
Strategic Context
History of NEPAD IPPF
Achievements to date
Investment
Opportunity
Consultancy Needs (2012 WP)
Financing Gap ( Projects yet to
reach Financial Close )
AFRICAN DEVELOPMENT BANK GROUP
Strategic Context
G20 Infrastructure Action
Plan
• highlights the importance
of regional infrastructure
for African growth
• to prioritize project
preparation financing,
notably the NEPAD
Infrastructure Project
Preparation Facility
PIDA
• Programme for
Infrastructure
Development in Africa
• Endorsed at the AU Heads
of State Summit in January
2012
• Set regional priority
integration infrastructure
needs
• IPPF played a key role in
preparation and delivery
AFRICAN DEVELOPMENT BANK GROUP
Strategic Context
Infrastructure Need in Africa (according to PIDA)
• Bankable regional infrastructure remain a high
priority for Africa
• PIDA study shows 22bn $ Gap on infrastructure
spending
• Project preparation costs in Africa average 1012 % of total project cost
• Regional project preparation could be as high as
2-2.5 billion a year
• Beyond any one facility’s Capacity
AFRICAN DEVELOPMENT BANK GROUP
NEPAD-IPPF(History)
PURPOSE:
To assist African countries, RECs and institutions to prepare high quality, viable
regional/continental infrastructure projects that would be ready to solicit public and private
financing
 To support the creation of an enabling environment for private & public sector
participation in infrastructure,
 To support targeted capacity building initiatives to enhance the sustainability of existing
and planned infrastructure developed in the continent, in fulfillment of the NEPAD
objectives.
AFRICAN DEVELOPMENT BANK GROUP
NEPAD-IPPF(History)
KEY CHARACTERISTICS:
Facility has been seed financed by the Government of Canada in line with Kananaski’s
G20 meeting decision in 2002.
The Facility is untied and has been enlarged into a multi-donor facility which includes
Canada, Denmark, UK (DFID), Germany, Spain and AfDB.
Quick access and disbursement Facility
Eligibity : African countries and institutions and PPP promoters
Sectors: Water, Energy , Transport , and ICT
Facility is managed by the ADB.
AFRICAN DEVELOPMENT BANK GROUP
Achievements to Date
Portfolio of 46 Projects
13 Supported Projects reached financial closure
Investment leveraged : $ 5.3bn
More than 1 million jobs created
78 m people directly and around 400 m people indirectly benefiting from access to infrastructure
25 to 50% reduction in energy
significant reduction in
2% increase in energy
cost
transport cost
AFRICAN DEVELOPMENT BANK GROUP
PROJECTS OF THE
2012 work programme
• Extension of San Pedro Port , Côte d’Ivoire, phase II
Purpose: Detailed design
Countries: Côte d’Ivoire and Guinea, Liberia, Mali
Status: Research of co-financiers
Total Project Cost: USD 3,21 million
IPPF contribution: around USD 1,5 million
Co-financiers or co-financing need: up to USD 2 million
• NAVISAT project, Egypt
Purpose: continuation of a study funded by the AfDB MIC fund. New activities include:
• Finalization of detailed business and technical studies;
• Finalization of frequency coordination study
• Implementation of program management office
Countries: Egypt & the Entire African Continent
Status: Screening stage
Total Project Cost: USD 2.6 m
IPPF contribution: up to USD 1.5 m
Co-financiers or co-financing need: USD 1.1 m
Projects in need of Financing
Pojects yet to reach financial closure:
•
•
•
•
Zambia-Tanzania-Kenya Electricity interconnexion project (EAC)
ECOWAN (ECOWAS)
SATA Backhaul Links (SADC)
COMTEL project (COMESA)
Mozammbique Ongoing Activities
NACALA ROAD CORRIDOR
Description
• Study: Road
section
Malawi
Zambia and
Mozambique
Cost:
• 2million USD
• 65%.1% from
NEPAD IPPF
• 29.1% JICA
Status
• Bank is
considering
financing
investment for
1st phase
• Consultant to
undertake
studies will
be procured
through
international
bidding using
Bank rules for
the
procurement
of consultants
Ghana
Ghana Burkina Interconnection
Description
• Study: Power
interconnection
Ghana and Burkina
Faso
Cost:
Status
• 1.90 million USD
• 500k USD from
NEPAD IPPF
• Other
partners(USAID,AFDDBSA,VRA, SONABEL
• Bank is considering
financing investment
for 1st phase
• Physical
implementation
Ongoing.
AFRICAN DEVELOPMENT BANK GROUP
Tunneling of Fund
IPPF is Promoting the
concept of Tunnel of fund
Strategic Decision to Focus on
steps 2 to 5 and step 1 to be
linked to specific project
TF applied last year to the
San Pedro Port Extension
AFRICAN DEVELOPMENT BANK GROUP
THANK YOU
MERCI
DANK U
Contacts
Bamory TRAORE
Lead, Coordinator NEPAD-IPPF
NEPAD, Regional Integration and Trade Department
African Development Bank
Tel : (216) 71 10 22 23
Fax : (216) 71 33 26 94
b.k.traore@afdb.org
Nepad-ippf@afdb.org