Africa’s Time for
ACTION
ACCELERATING
IMPLEMENTION OF
THE PIDA PAP
G20 Africa Infrastructure Investment Conference
18-19 July 2013, London, United Kingdom
Interconnecting, integrating and
transforming a continent
Programme for Infrastructure
Development in Africa
Overview of Presentation
1
• ON-GOING INITIATIVES
2
• PIDA PAP Portfolio
3
• Financing & Resource
Mobilization
4
• Key Actions & Role of AfDB
1
The African Development Bank Group T h e P r e m i e r P a r t n e r f o r A f r i c a ’s D e v e l o p m e n t
Africa
Regional Member Countries
(Shareholding: 60.8%)
Libya (3.8%)
Algeria (4.0%)
Madagascar (0.6%)
Angola (1.2%)
Malawi (0.3%)
Benin (0.2%)
Mali (0.4%)
Botswana (2.1%)
Mauritania (0.2%)
Burkina Faso (0.4%)
Mauritius (1.9%)
Burundi (0.2%)
Morocco (3.3%)
Cameroon (1.0%)
Mozambique (0.6%)
Cape Verde (0.08%)
Namibia (0.3%)
Central African Rep.
Niger (0.3%)
(0.04%)
Nigeria (8.8%)
Chad (0.07%)
Rwanda (0.1%)
Comoros (0.02%)
S. Tome & Principe
Congo (0.5%)
(0.07%)
Côte d’Ivoire (3.7%)
Senegal (1.0%)
D. R. Congo (1.0%)
Seychelles (0.06%)
Djibouti (0.05%)
Sierra Leone (0.2%)
Egypt (5.1%)
Equatorial Guinea (0.2%)Somalia (0.09%)
South Africa (4.5%)
Eritrea (0.09%)
Sudan (0.4%)
Ethiopia (1.6%)
South Sudan
Gabon (1.2%)
Swaziland (0.3%)
Gambia (0.2%)
Tanzania (0.8%)
Ghana (2.3%)
Togo (0.16%)
Guinea (0.4%)
Guinea Bissau (0.03%) Tunisia (1.4%)
Uganda (0.5%)
Kenya (1.4%)
Zambia (1.2%)
Lesotho (0.2%)
Zimbabwe (2.0%)
Liberia (0.2%)
Non-Regional Member Countries (Shareholding 39.2%)
Middle East
Kuwait (0.4%)
Saudi Arabia
(0.2%)
The African Development Bank Group
Europe
Austria (0.4%)
Belgium (0.6%)
Denmark (1.1%)
Finland (0.5%)
France (3.7%)
Germany (4.1%)
Italy (2.4%)
Netherlands
(0.8%)
Norway (1.1%)
Portugal (0.2%)
Spain (1.0%)
Sweden (1.5%)
Switzerland (1.4%)
UK (1.7%)
Americas
Argentina (0.3%)
Brazil (0.4%)
Canada (3.7%)
USA (6.6%)
Asia
China (1.1%)
India (0.2%)
Japan (5.5%)
Korea (0.4%)
2
A Continental Partnership for Implementation
Africa’s Time for
of PIDA
ACTION
AfDB
AUC
NPCA
PIDA IMPLENTATION STEERING COMMITTEE
Interconnecting, integrating and
transforming a continent
Programme for Infrastructure
Development in Africa
Overview of On-going Initiatives
Continental
Level
REC Level
Project Level
• Coordination &
Oversight
• Align PIDA PAP to
REC Master Plans
• Move Projects to
Bankability
• Enabling
Environment
• Prioritize &
Sequence Projects
• Dialogue/Reforms
on Project Specific
Issues
• Political & Policy
Buy-in
• Harmonization of
Policies, Standards
& Legal
Frameworks
• Strategic Linkages
• Structuring &
Financing
4
Key Considerations in Delivery of PIDA PAP
Coordination
• Continental &
Regional
Capacities
• Strategic oversight
and alignment
Communication
• Target audience
• Key messages
• Regional &
National
• Public-Private &
Specialized
Institutions
• Key issues
impacting on
project realization
• Moving projects
from preparation
to bankability
• Validation by
stakeholders
• Packaging and
delivery/mediums
• Development
Partners
5
ON-GOING INITIATIVES
Communications
• PIDA
Communications
Strategy
• Stakeholders,
Outreach,
Ownership
• Key Messages
• Business Case
• Development
Impact
Updating of
PIDA PAP
• Unbundling the
PIDA PAP
• Key issues
impacting on
Project realization
• Moving projects
from preparation
to bankability
Private Sector
Participation
• Create
opportunities for
private sector
participation in
PIDA
• Define and apply
Bankability Criteria
• Create enabling
environment
6
Africa’s Time for
Strategic Partnership with WEF
ACTION
KEY HIGHLIGHTS
Establishment of BWG
WEF Africa 2013
Heads of States Mandate to roll out
the Africa Strategic
Infrastructure Initiative
Aims to match private
sector resources with
the most critical
Transformative
Transnational
Infrastructure
Interconnecting,
Projects.
integrating and
transforming a continent
Programme for Infrastructure
Development in Africa
Overview of Presentation
1
• ON-GOING INITIATIVES
2
• PIDA PAP PORTFOLIO
3
• Financing & Resource
Mobilization
4
• Role of AfDB
8
Build an Integrated, Prosperous and Peaceful Africa,
Driven by its Citizens and Representing a Dynamic
Force in the International Arena
PIDA IS A KEY PILLAR IN ACHIEVING THIS VISION
Vision: AUC 2004 Strategic Plan
DIAGNOSIS
OF EXISTING
SITUATION
OUTLOOK
2040
• Stakeholder Consultative Process
• Collective Consensus on Priorities
• Approval by African Heads of State
STRATEGIC
FRAMEWORK
PIDA
2040
9
The Programme for Infrastructure Development in Africa –
Priority Action Plan 2020 (PIDA-PAP)
PIDA Priority Action Plan 2020
Energy
15 items
USD 40 bn
The energy infrastructure
program focuses on
major hydroelectric
projects and
interconnects the power
pools to meet the
forecast increase in
demand. One regional
petroleum products
pipeline is also included.
11
PIDA Priority Action Plan 2020
Transport Networks
24 items-USD 25 bn
The transport program
links the major
production and
consumption centers,
provides connectivity
among the major cities,
defines the best hub
ports and railway
routes, and opens the
land-locked countries to
improved regional and
continental trade.
12
PIDA Priority Action Plan 2020
ICT - 3 items
USD 0.5 bn
The ICT program will
establish an enabling
environment for
completing the land
fiber optic infrastructure
and installing Internet
exchange points in
countries without them.
It will connect each
country to two different
submarine cables to
take advantage of the
expanded capacity.
13
PIDA Priority Action Plan 2020
Water Resources (excluding energy dams)
9 items - USD 2 bn
The transboundary water
program targets the
development of
multipurpose dams and
builds the capacity of
Africa’s lake and river
basin organizations so
that they can plan and
develop hydraulic
infrastructure. The
program would also help
address the looming food
deficit.
14
Overview of Presentation
1
• ON-GOING INITIATIVES
2
• PIDA PAP Portfolio
3
• FINANCING & RESOURCE
MOBILIZATION
4
• Role of AfDB
15
36 projects still need preparation funding…
but represent opportunities for future investors
Project Stage
No.
Cost
S1 – Early Concept Proposal
9
USD 17.2 bn
S2 – Feasibility/Needs Assessment
16
USD 22.7 bn
S3 – Programme/Project Structuring
and Promotion to Obtain Financing
11
USD 6.6 bn
S3/S4: Structuring/Financing
11
USD 13.3 bn
S4 – Implementation and Operation
4
USD 8.2 bn
16
Key Focus: Mobilizing Resources for
Implementation of PIDA
• Public Financing
• Public-Private
Partnerships
(PPPs)
Domestic
Resources
Private
Financing
• Enabling
Environment
• Reforms – Pvt
Sector Input
• Project
Preparation
• Project
Financing
Investment
Mobilization
Packaging of Projects
Development Case
• Economic Benefits (Demonstrable)
• Inclusive Growth (Jobs, Green Economy, Environment, Catalyst)
Business Case
• Return on Investment
• Viability & Profitability
Implementation Roadmap
• Sequencing and Preparation
• Enabling Environment
18
Key Actions Going Forward
1. Address Coordination, Capacity and Communication
issues innovatively
2. Strengthen Project Preparation around the PIDA PAP
3. Unbundle, prioritize and sequence projects into
Pipeline of Bankable Projects
4. Bring on board the Private Sector and address issues of
Enabling Environment
5. Strengthen Monitoring, Evaluation and Reporting
6. Foster strong “Implementation Partnerships” – PublicPrivate
7. Address Sector Linkages and Inclusive Growth
19
MOBILISING RESOURCES THROUGH
PARTNERSHIPS
Aims to mobilize funding for preparation an
and investment at a large scale than currently
available within the AfDB Group
NEPAD
IPPF
ICA
Africa 50Fund
WORLD
ECONOMIC
FORUM
Platform for Private Sector
as Strategic Partners in
Capacitation, Financing
and Implementation of
Africa’s Transformative
Projects
Project Preparation through
donor sourced Development aid
funding and technical support
20
Africa 50 Fund
Mobilizing Domestic Capital
LEVERAGE
–
–
• Project Development: Addressing Bankability
• Project Finance: for revenue generating
projects
SWF, CBs,
Approximately
10 times
Return
+
+
Risk
Pension Funds
AfDB
BONDS
African Countries
LICs: ADF PBA+RO
MICs: CB, PF & SWF
EQUITY
Overview of Presentation
1
• ON-GOING INITIATIVES
2
• PIDA PAP Portfolio
3
• Financing and Resource
Mobilization
4
• ROLE OF AFDB
22
AfDB Support
Project
Preparation
Project
Financing
Technical
Assistance
23
Inter-Departmental Working Groups on PIDA Set Up
within AfDB to Promote
“One Bank” Approach to PIDA Delivery
Energy
Working
Group
Transport &
ICT Working
Group
Water
Working
Group
24
Bank Group Impact on Africa
Bank Group total approvals maintained above
pre-crisis levels
Bank Group Loan & Grant Approvals by Sector
2011
Responding to the global crisis Record amount of approvals in 2009
The African Development Bank Group
25
Bank Group Investments in Infrastructure
AfDB Investment in Infrastructure - All windows - 2007 - 2011 (UA millions)
Sector/Year
2007
2008
2009
2010
2011
Total
1,931.33
1,411.46
3,907.89
2,603.55
1,572.27
11,426.50
Water Supply & Sanitation
211.49
236.84
297.37
444.07
139.19
1,328.96
Power Supply
929.99
533.49
2,233.52
887.65
420.14
5,004.79
84.26
32.43
7.57
157.25
1,292.73
1,239.41
1,005.37
4,935.49
Total Infrastructure
Communication
32.99
Transportation
756.86
641.12
26
AfDB Group Financing is Flexible to Support an
Evolving Global and Regional Context
What We Fund
Windows
ADB/ADF Funds
Infrastructure
“Hard”
Special Initiatives
- AWF
- NEPAD/ IPPF
- ICA
Enabling
Environment
“Soft
Infrastructure”
Trust Funds
Eg. MIC, FSF
Instruments
Loans
Recipients
National/
Local
Governments
Grants
Regional
Organizations
RECs, RBOs, PPs
Equity
Private
Companies
Guarantees
NGOs/CBOs
A time for action
MERCI
OBRIGADO
THANK YOU
‫شكرا‬
28