Interconnecting, integrating andtransforming a continent

Programme for InfrastructureDevelopment in Africa

Africa’s Time for ACTION

ACCELERATING IMPLEMENTION OF THE PIDA PAP

G20 Africa Infrastructure Investment Conference18-19 July 2013, London, United Kingdom

Overview of Presentation

• ON-GOING INITIATIVES1

• PIDA PAP Portfolio2• Financing & Resource

Mobilization3

• Key Actions & Role of AfDB 4

2

The African Development Bank Group

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

3

China (1.1%)India (0.2%)Japan (5.5%)Korea (0.4%)

Kuwait (0.4%)Saudi Arabia (0.2%)

Argentina (0.3%)Brazil (0.4%)Canada (3.7%)USA (6.6%)

Austria (0.4%)Belgium (0.6%)Denmark (1.1%)Finland (0.5%)France (3.7%)Germany (4.1%)Italy (2.4%)

AmericasEuropeMiddle East Asia

Non-Regional Member Countries (Shareholding 39.2%)

Algeria (4.0%)Angola (1.2%)Benin (0.2%)Botswana (2.1%)Burkina Faso (0.4%)Burundi (0.2%)Cameroon (1.0%)Cape Verde (0.08%)Central African Rep. (0.04%)Chad (0.07%)Comoros (0.02%)Congo (0.5%)Côte d’Ivoire (3.7%)D. R. Congo (1.0%)Djibouti (0.05%)Egypt (5.1%)Equatorial Guinea (0.2%)Eritrea (0.09%)Ethiopia (1.6%)Gabon (1.2%)Gambia (0.2%)Ghana (2.3%)Guinea (0.4%)Guinea Bissau (0.03%)Kenya (1.4%)Lesotho (0.2%)Liberia (0.2%)

Libya (3.8%)Madagascar (0.6%)Malawi (0.3%)Mali (0.4%) Mauritania (0.2%)Mauritius (1.9%)Morocco (3.3%)Mozambique (0.6%)Namibia (0.3%)Niger (0.3%)Nigeria (8.8%)Rwanda (0.1%)S. Tome & Principe (0.07%)Senegal (1.0%) Seychelles (0.06%)Sierra Leone (0.2%)Somalia (0.09%)South Africa (4.5%)Sudan (0.4%)South SudanSwaziland (0.3%)Tanzania (0.8%)Togo (0.16%)Tunisia (1.4%)Uganda (0.5%)Zambia (1.2%)Zimbabwe (2.0%)

Africa Regional Member Countries

(Shareholding: 60.8%)

Netherlands (0.8%)Norway (1.1%)Portugal (0.2%)Spain (1.0%)Sweden (1.5%)Switzerland (1.4%)UK (1.7%)

Interconnecting, integrating andtransforming a continent

Programme for InfrastructureDevelopment in Africa

Africa’s Time for ACTION

A Continental Partnership for Implementation of PIDA

AfDB AUC NPCA

PIDA IMPLENTATION STEERING COMMITTEE

Continental Level

• Coordination & Oversight

• Enabling Environment

• Political & Policy Buy-in

• Strategic Linkages

REC Level

• Align PIDA PAP to REC Master Plans

• Prioritize & Sequence Projects

• Harmonization of Policies, Standards & Legal Frameworks

Project Level

• Move Projects to Bankability

• Dialogue/Reforms on Project Specific Issues

• Structuring & Financing

5

Overview of On-going Initiatives

Coordination • Continental &

Regional

• Regional & National

• Public-Private & Specialized Institutions

• Development Partners

Capacities • Strategic oversight

and alignment

• Key issues impacting on project realization

• Moving projects from preparation to bankability

Communication

• Target audience

• Key messages

• Validation by stakeholders

• Packaging and delivery/mediums

6

Key Considerations in Delivery of PIDA PAP

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

7

ON-GOING INITIATIVES

Interconnecting, integrating andtransforming a continent

Programme for InfrastructureDevelopment in Africa

Africa’s Time for ACTION

Strategic Partnership with WEF

KEY HIGHLIGHTS

Establishment of BWG

WEF Africa 2013Heads of States - Mandate to roll outthe Africa Strategic Infrastructure Initiative Aims to match privatesector resources with the most critical TransformativeTransnationalInfrastructure Projects.

Overview of Presentation

• ON-GOING INITIATIVES 1

• PIDA PAP PORTFOLIO2• Financing & Resource

Mobilization3

• Role of AfDB 4

9

DIAGNOSIS OF EXISTING SITUATION

OUTLOOK 2040

STRATEGIC FRAMEWOR

K

PIDA

2040

Vision: AUC 2004 Strategic Plan

Build an Integrated, Prosperous and Peaceful Africa, Driven by its Citizens and Representing a Dynamic

Force in the International ArenaPIDA IS A KEY PILLAR IN ACHIEVING THIS VISION

+ + =• Stakeholder Consultative Process • Collective Consensus on Priorities • Approval by African Heads of State

10

The Programme for Infrastructure Development in Africa – Priority Action Plan 2020 (PIDA-PAP)

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.

PIDA

Prio

rity

Actio

n Pl

an 2

020

Energy15 itemsUSD 40 bn

12

PIDA

Prio

rity

Actio

n Pl

an 2

020

13

Transport Networks24 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.

14

ICT - 3 itemsUSD 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.

PIDA

Prio

rity

Actio

n Pl

an 2

020

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. PI

DA P

riorit

y Ac

tion

Plan

202

0

15

Water Resources (excluding energy dams) 9 items - USD 2 bn

Overview of Presentation

• ON-GOING INITIATIVES 1

• PIDA PAP Portfolio2• FINANCING & RESOURCE

MOBILIZATION3

• Role of AfDB 4

16

36 projects still need preparation funding…but represent opportunities for future investors

17

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

• Public Financing

• Public-Private Partnerships (PPPs) Domestic

Resources

• Enabling Environment

• Reforms – Pvt Sector Input

Private Financing • Project

Preparation • Project

Financing

Investment Mobilization

LEVERAGE, CO-FINANCING, INNOVATION

Key Focus: Mobilizing Resources for Implementation of PIDA

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

19

Key Actions Going Forward

1. Address Coordination, Capacity and Communication issues innovatively

2. Strengthen Project Preparation around the PIDA PAP3. Unbundle, prioritize and sequence projects into Pipeline of

Bankable Projects 4. Bring on board the Private Sector and address issues of

Enabling Environment5. Strengthen Monitoring, Evaluation and Reporting 6. Foster strong “Implementation Partnerships” – Public-

Private7. Address Sector Linkages and Inclusive Growth

20

21

ICA

NEPAD IPPF

WORLD ECONOMICFORUM

Africa 50Fund

MOBILISING RESOURCES THROUGH PARTNERSHIPS

Aims to mobilize funding for preparation anand investment at a large scale than currentlyavailable within the AfDB Group

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

Africa 50 FundMobilizing Domestic Capital

• Project Development: Addressing Bankability• Project Finance: for revenue generating

projects

SWF, CBs, Pensi

on FundsAfDB

African CountriesLICs: ADF PBA+RO

MICs: CB, PF & SWF

Equi

ty T

ranc

hes

BONDS

EQUITY

LEVERAGE

Approximately10 times

+Ri

sk–

+Re

turn

–

Overview of Presentation

• ON-GOING INITIATIVES 1

• PIDA PAP Portfolio2• Financing and Resource

Mobilization3

• ROLE OF AFDB 4

23

24

AfDB Support

Project Preparation

Project Financing

Technical Assistance

25

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

26

Bank Group Impact on Africa

The African Development Bank Group

Bank Group total approvals maintained above pre-crisis levels

Bank Group Loan & Grant Approvals by Sector2011

Responding to the global crisis Record amount of approvals in 2009

Bank Group Investments in Infrastructure

AfDB Investment in Infrastructure - All windows - 2007 - 2011 (UA millions)

Sector/Year 2007 2008 2009 2010 2011 Total

Total Infrastructure 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

Communication 32.99 84.26 32.43 7.57 157.25

Transportation 756.86 641.12 1,292.73 1,239.41 1,005.37 4,935.49

27

AfDB Group Financing is Flexible to Support an Evolving Global and Regional Context

Infrastructure“Hard”

Enabling Environment

“Soft Infrastructure”

ADB/ADF Funds

Special Initiatives- AWF- NEPAD/ IPPF- ICA

Trust FundsEg. MIC, FSF

Loans

Grants

Equity

Guarantees

National/Local

Governments

Regional Organizations

RECs, RBOs, PPs

Private Companies

NGOs/CBOs

What We Fund Windows Instruments Recipients

A time for action

MERCIOBRIGADOTHANK YOU

شكرا29