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EuropeAid
Enabling infrastructure and urban development projects in ACP countries
The European Commission support
June 2009
Raul MATEUS PAULA, EuropeAid
EuropeAidThe case for Infrastructure: A major constraint on Africa’s development
• Transport:o 40% of Africa’s population live in landlocked countrieso Only one third of people have access to all-season roadso Several African airlines banned from EU
• Energy:o Only 20% of Africa’s population has access to electricityo High energy losses (Kenya looses 10% of manufacturing output
through power cuts)• ICT:
o International calls cost up to 20 times more than other developing regions
o Bandwidth costs up to 40 times more than some developed countries
o BUT spectacular growth in mobile phone use
EuropeAidEU-Africa Infrastructure PartnershipObjectives
• EC Communication (2005) • EU – Africa Partnership launch (October 2007)• EC Communication on helping developing countries in coping with the
crisis (2009)
• Promote achievement of MDGso Sustainable economic growth
• Interconnectivity• Regional Integration
o Identify and address missing linkso Harmonise transport policieso Integrated water managemento Cross-border and regional energyo Bridge the digital divide
EuropeAidEC and Infrastructure in ACP countriesa long term commitment
Transport € 5.2 billion
Water € 1.4 billion
Energy € 225 million
Urban
Development
€ 800 million
TOTAL € 7.7 billion
EuropeAid
EuropeAidEU-Africa Infrastructure PartnershipEU Water Facility
Total project Cost : € 783 million EC Contribution : € 417 million
Pacific 4 projects; 7,6 M € - 2%
Multi Regio 12 projects;15,9 M € - 4%
Caribbean 10 projects;13,8 M € - 3%
West Africa - 46 projects;89,6 M € - 21%
East Africa 59 projects; 166,7 M € - 40%
TOTAL: 175 projects
Southern Africa 29 projects;
100 M € - 24%
Central Africa 15 projects; 23,8 M € - 6%
EuropeAidEU-Africa Infrastructure PartnershipEU Energy Facility
Total project cost: € 424 million
EU Contribution: € 197 million
East Africa: 19 projects;
39,0 M € - 20%
TOTAL : 75 projects
Central Africa: 8 projects;
35,6 M € - 18%
Southern Africa:13 projects;
50,9 M € - 26%
Multi Regio: 3 projects;
4,7 M € - 2%
Pacific: 4 projects;
2,2 M € - 1%
Caribbean: 6 projects; 10,1 M € - 5%
West Africa: 22 projects
54,9 M € - 28%
EuropeAid
EU – Africa Infrastructure Partnership Sectoral Support to Institutions (1/2)
• Support to the AUCo Support to the budget € 55 million
• To the Infrastructure and Energy Dept: € 2 million
• Energy: c. € 14 milliono Power Pools [Central, East, South, West] € 7.5 milliono Regions [ECOWAS, SADC]: €4.5 milliono ECOWAS Electricity Regulator :€1.7 million (tbc, Trust Fund)
• ICT over € 10 million o ITU: Legislation/Regulatory Framework:
• Initial phase, West – Central Africa € 2.5 million (compl.)
• Pan SSA cover, national adoption: € 4.5 milliono allocation from on-going € 9.5 million call for proposals
• Transport: € 16 million o Sub- Saharan Africa Transport Programme (SSATP),
equally split (€ 8 million) for 2004-08 and 2009-13
EuropeAidEU – Africa Infrastructure Partnership Sectoral Support to Institutions (2/2)
• Water: c. € 30 milliono AMCOW: € 2.6 million, Nile Basin Initiative: € 18 milliono River Basin Organisations: € 10 million
(Chad, Volta, Niger, Orange, Kagera)
• All infrastructure sectors :o AFUR (African Forum for Utility Regulators) € 1.3 m
• Environment: c. 50 milliono Multilateral Environmental Agreements, c. € 10 million
(UNEP – Regional Hubs & UNCCD: Combat Desertification)o African Monitoring of Environment (AMESD)
2007-’11: € 21 million plus € 8 million (10th EDF)
EuropeAid10th EDF Multiannual Financial Framework
2008-2013
EDF 10 %
of totalp.m.
EDF 9
1. National and regional cooperation 17.766 81% 12.177
2. Intra - ACP cooperation 2.700 12,3% 3.059
Sub-total managed by the Commission 20.466 15.236
3. Investment Facility (managed by the EIB) 1.500 6,8% 2.224
Sub-total operational credits ACP 21.966 100% 17.460
OCT (incl investment facility) 286 1,3% 329
Support expenditures 430 2% 331
Total ACP + OCT support 22.682 18.120
EuropeAid10th EDF programming Results at country level -
Sector Breakdown
Sector breakdown EDF9 - EDF10
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
EDF9 initial EDF9 MTR EDF10
Sect
or s
hare
in N
IP A
-env
elop
e
General budget support
Other
NSA
Social cohesion
Education
Health
Agriculture, ruraldevelopment, food securityEnvironment
Water & energy
Transport infrastructure
Economic growth, incltrade & regional integrationDemocratic governance,incl peace & security
EuropeAidEC support to Africa’s infrastructure
2008-2009 Commitments
• NATIONAL PROGRAMMES 2008-2009
• Transport: € 1.6 billiono 2008: € 1.1 billiono 2009: € 500 million
•Water: € 520 million o 2008: € 220 milliono 2009: € 300 million
• Energy: € 75 million
EuropeAidEC support to Africa’s infrastructure
2008-2009 Commitments
• Intra REGIONAL PROGRAMME 2009-2010
• Facilities: € 400 million [2009]o Water: € 200 milliono Energy:€ 200 million
• Infrastructures: € 300 million [2009-2010]o Institutional supporto Infrastructure Trust Funds
• Global Efficiency & Renewable Energy Fund: € 75 million • Global Climate Change Alliance: €50m (Budget) + €40m (EDF)
EuropeAidEU – Africa Infrastructure Partnership EU-Africa Infrastructure Trust Fund
• Significant leverage
Sources of financing Projects approved Clearance “in principle”
Trust Fund
(grants)c. € 65.7 million c. € 12.7 million
Project Financiers
(loans)c. € 229 million c. € 103 million
TOTAL COST
of projectc. € 829 million c. € 250 million
PFG leverage
(PFG/TF)3.5 8.11
Total Financing
Leverage (Total/TF)12.6 19.7
EuropeAidUrban development: EC-funded projects
• 3 areas of cooperation :• Rehabilitation and reconstruction of basic urban
infrastructures following conflicts and natural disasters• Risks reduction and disaster prevention• Urban operations
o Buildings for health and education, markets, judiciary…o Solid and liquid waste managemento Technical assistance to municipalities / urban
microprojectso Slum upgrading and improving living conditions in townso Cultural heritage protection and preservation of
historical sites and buildingso Local economic development and micro-finance
EuropeAidEC presence in ACP countries
• Ad-hoc operations, mostly in social/transport/water sectors.
• LRRD activities, as part of security and recovery strategy (RDC, Haiti, Liberia…)
o with UN-HABITAT: “Urban Sector Profile Studies” per selected
countries to identify areas for support and a framework for long term interventions, 4 M€, approved 2007
o with WB Trust-fund “Cities Alliance”:Anti-slum strategies and urban poverty reduction,EC participation of 0.75 M€, approved 2007
EuropeAidCities Alliance Trust Fund
• EC contribution of €0.75M aims at broadening the scope of action to multilateral initiatives for urban development in ACP countries
• North-South partnership for common actions targeted to urban zones and poverty reduction.
• The EC participates in this unique partnership through a consultative group, allowing to develop a dialogue on:
o Public and/or Private Partnerships,o Research, o Innovation, o Institutional, political and other barriers to poverty reduction
in the urban context
EuropeAidARIAL – Supporting and Strengthening
Local Authority Associations
• Promoting and strengthening Local Authorities in ACP countries, including cities, vis-à-vis the strategic dialogue at national and international level.
• At EU level the ACP Local Government Platform (ACP LGP) has been recognised to have a de facto monopoly on representing ACP local authority associations. ACP LGP will receive a grant to carry out activities in representation, networking and support for ACP local authority associations - € 1 million
• For the support to local authority associations at regional and national levels, a call for proposals will be published to identify an implementing partner - € 5.6 million
EuropeAidNatural Disaster Facility
• ACP regional organisations: • 9th EDF: €12 M for 6 sub-regional programmes for 2007-2011
• Reinforcement of institutional structures for disaster risk management• Development and implementation of mechanisms for
knowledge management and information sharing• Reinforcement of natural disaster early warning capacities • Development of national and regional policies, strategies
and action plans• Ready to start in the Pacific region.• 10th EDF allocation: € 180 million
EuropeAid
Thanks - Merci