Closing the Infrastructure Gap:

The World Bank’s contribution

Infrastructure Consortium for Africa

Tokyo, March 2008

IDA-14 scale-up sustained

•Sca

le u

p to $

1b o

f new

ID

A len

din

g in F

Y07 sust

ained

in F

Y08

•W

SS d

ouble

d, en

ergy &

tra

nsp

ort incr

ease

d b

y 5

0%

Infrastructure lending by sector ($M)

5

521

596

773

871

721

355

144

0

100

200

300

400

500

600

700

800

900

1,000

ICT

Energy & mining

Transportation

WSS

FY06

FY07

IDA Infrastructure lending in SSA since FY00 ($M)

650

1300

1400

1450

2500

2500 (*)

0

500

1000

1500

2000

2500

3000

FY00/01

FY02/03

FY04/05

FY06

FY07

FY08

(*) tentative

Continued regional engagement

•$1.3

billion for re

gio

nal

infras

truct

ure

pro

ject

s FY

04-F

Y08

•2/3

reg

ional

res

ourc

es d

edic

ated

to infras

truct

ure

Proje

ct

Fis

cal

Yea

r

Net

Com

mitm

ent

(USD

Million)

Reg

ional

Com

munic

atio

ns In

fras

truct

ure

07

164.5

0

Reg

ional

and D

om

estic

Pow

er M

arket

s D

evel

opm

ent

07

296.7

0

CEM

AC

Tra

nsp

ort-T

ransi

t Fac

ilitat

ion

07

201.0

0

Tota

l FY

07

497.7

0

Nig

er B

asin

Wat

er R

esourc

es D

evel

opm

ent

08

186.0

0

South

ern A

fric

a Pow

er M

arket

Pro

gra

m: M

oza

mbiq

ue-

Mal

awi Tra

nsm

issi

on Inte

rconnec

tion

08

93.0

0

Wes

t an

d C

entral

Afric

a A

ir T

ransp

ort S

afet

y a

nd

Sec

urity

08

46.6

5

Tota

l FY

08 (as of M

arch

1, 2008)

325.6

5

Some interesting and innovative deals (1/3)

•A

ddre

ssin

g c

ritica

l en

ergy

supply

gap

in U

gan

da

•Buja

gal

ihydro

-pow

er (250M

W)

•Tea

mw

ork

acr

oss

the

World

Ban

k G

roup

•ID

A P

RG

US$115m

•IF

C U

S$130m

•M

IGA

US$115m

•Lev

erag

ing p

rivat

e se

ctor

inves

tmen

t

•Addre

ssin

g e

nvironm

enta

l,

soci

al c

once

rns

⇒ ⇒⇒⇒WB committed to tackling complex energy projects

CEM

AC T

ransp

ort T

ransit Fac

ilitat

ion

oTota

l finan

cing U

S$700m

o3 c

ountrie

s: C

had

/ C

amer

oon / C

AR

oM

ultip

le d

onors

: ID

A, EC, A

fDB, A

FD

PRO

-RO

UTES e

xam

ple

($123 m

)

o1,8

00 k

m o

f key

ear

th road

s in

DRC

oM

ulti-D

onor trust F

und: D

FID

+ ID

A

oCoord

inat

ed w

ith E

C p

roje

cts

Some interesting and innovative deals (2/3)

⇒ ⇒⇒⇒WB committed to corridor approach in

partnership with other donors

�Reg

ional

Com

munic

atio

ns

Infr

astruct

ure

Pro

gra

m o

n E

aste

rn

Afr

ica

subm

arin

e ca

ble

�U

S$ 4

24 m

illion reg

ional

APL

(US$164.5

m for Phas

e I)

�O

pen

to 2

5 c

ountrie

s in

Eas

t an

d

South

ern A

fric

a

�Phas

e I: K

enya,

Buru

ndi an

d

Mad

agas

car

�Phas

e II

& III

: Rw

anda,

Mal

awi,

Tan

zania

, M

oza

mbiq

ue

Some interesting and innovative deals (3/3)

⇒ ⇒⇒⇒WB committed to addressing key missing links

IDA 15: a record replenishment

•ID

A-1

5 rec

ord

rep

lenis

hm

ent of ar

ound $

40 b

illion

repre

senting 3

0%

incr

ease

over

ID

A-1

4–

Aro

und h

alf w

ill go to S

SA

–A

lmost

hal

f of th

at w

ill go to infras

truct

ure

(U

S$3bn p

a)

–A

round 1

5%

of th

at w

ill go to reg

ional

infras

truct

ure

(US$0.4

5bn p

a)

–G

reat

er fle

xib

ility o

n a

lloca

tions to

fra

gile

stat

es

•ID

A-1

5 spec

ial th

emes

: cl

imat

e ch

ange,

reg

ional

inte

gra

tion, in

fras

truct

ure

, post

-conflic

t co

untrie

s⇒ ⇒⇒⇒IDA in a strong financial position to

continue infrastructure scale-up

Emerging IDA-15 project pipeline

Ten

tative

pip

elin

e in

FY

09 :

Regional integration

$Mill

Transport

Abidjan-Lagos Transport & Transit Project

242

Energy

East Africa power Market

100

West Africa Power Pool (Phase III)

60

ICT

Central Africa Backbone

45

East Africa Telecommunications RCIP II

35

WRM

Lake Victoria Environmental Mgt Projecy II

180

National projects

Transport

Ghana transport

100

Tanzania transport

230

Uganda transport IV

100

DRC multi-modal transport

180

Energy

Kenya access

200

Ethiopia transmission

200

Nigeria energy infrastructure

250

WSS/Urban

Kenya municipal / waste

100

DRC urban water supply

150

Total

2172

New corporate strategies

•Sust

ainab

le Infr

astruct

ure

Act

ion P

lan (FY

09-1

1)

–Focu

s on soci

al a

nd e

nvironm

enta

l obje

ctiv

es (in

par

ticu

lar, c

lim

ate

chan

ge)

–Em

phas

is o

n lev

erag

ing p

rivat

e se

ctor w

ith W

B res

ourc

es

•Reg

ional

Inte

gra

tion A

ssis

tance

Strat

egy (FY

09-1

1)

–Sust

ained

com

mitm

ent to

sca

ling-u

p fin

anci

ng for

regio

nal

infras

truct

ure

pro

ject

s

⇒ ⇒⇒⇒Africa is key corporate priority and

new strategies help to reinforce this

Reaching out to new partners

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2001

2002

2003

2004

2005

2006

US$ billions

Arab

India

China

•Em

ergin

g fin

anci

ers re

ached

US$5 b

illion in 2

006

•Im

portan

t pro

gre

ss o

n

dia

logue

with C

hin

a

–M

oU

with C

hin

a Ex-I

m

Ban

k (M

ay 2

007)

–N

ew W

B D

irec

tor fo

llow

s

Afric

a-Chin

a re

lationsh

ip

–Sta

ff e

xch

ange

with C

hin

a

Ex-I

mBan

k

–Jo

int m

ission for co

-

finan

cing

•Pre

lim

inar

y d

iscu

ssio

ns w

ith

Kore

a Ex-Im

on c

o-fin

anci

ng

⇒ ⇒⇒⇒WB committed to

partnership with

emerging financiers

Addressing power sector emergency

Mai

n C

ause

or Trigger

Nat

ura

l Cau

ses (D

roughts

)

Oil P

rice

Shock

System

Disru

pte

d b

y C

onflic

t

Hig

h G

row

th, Low

Inves

tmen

t/Struct

ura

l Is

sues

Countries affected by power crisis by cause

•A

fric

a’s pow

er c

risi

s has

bec

om

e in

crea

singly

gra

ve

•35 c

ountrie

s af

fect

ed b

y

pow

er inte

rruptions

•47 c

ountrie

s w

ith g

ener

atio

n

capac

ity o

f A

rgen

tina

•600 m

illion A

fric

ans w

ithout

acce

ss to p

ow

er

•South

ern A

fric

a now

dee

ply

affe

cted

•W

BG

ass

ista

nce

will

incr

ease

to o

ver

US$1 b

n

⇒ ⇒⇒⇒WB to increase emphasis on energy sector

•W

B e

fforts cu

rren

tly lim

ited

by ID

A funds

•Nee

d to m

ake

gre

ater

use

of oth

er fin

anci

al

instru

men

ts to incr

ease

res

ourc

e en

vel

ope

–G

reat

er e

ngag

emen

t w

ith M

ICs

–U

se o

f IB

RD

in ID

A c

ountrie

s•

Encl

ave

arra

ngem

ents

•Third P

arty

Guar

ante

e

•In

tere

st rat

e buy d

ow

ns

How can the World Bank do more?

⇒ ⇒⇒⇒WB open to exploring new financing channels

Suggested priorities for ICA

•Continue

donor har

moniz

atio

n, in

cludin

g

lever

agin

g a

dditio

nal

res

ourc

es a

nd rea

chin

g o

ut

to n

ew p

artn

ers

•Enco

ura

ge

pro

active

and a

ccel

erat

ed res

ponse

by

the

donor co

mm

unity a

nd p

rivat

e se

ctor to

the

pow

er c

risi

s

•Exam

ine

and res

pond to the

impac

ts o

f rising fuel

and food p

rice

s th

rough infr

astruct

ure

, in

additio

n

to soci

al m

easu

res