Development Bank African
The
MEETING WITH CICA/EIC/UNECE
AND THE AFRICAN DEVELOPMENT BANK
Doing Business with the
African Development Bank
Dr. Jacques Moulot
NEPAD, Regional Integration and Trade Department
Development Bank African
The
OUR STRATEGY….
Development Bank African
The
Ten Year Strategy
Overall goals: Green Growth and Inclusive Growth
PILLARS:
• Infrastructure (Transport, Energy, Water, ICT)
• Private Sector
• Regional Integration
• Governance and Accountability
• Skills and Technology
• Cross-Cutting Themes
• Agriculture, Environment and Climate Change, Gender, Knowledge activities
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Development Bank African
The
High-Five Priority
A visionary impact-based reading of the TYS
5 impacts driven objectives
• Light and Power Africa: 100% access by 2025
• Integrate Africa
• Industrialize Africa
• Feed Africa
• Improve the well-being of African
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Development Bank African
The
WHAT DOES THE BANK DO?
Development Bank African
The
• Support Social Economic Development of African RMC
• Demand-driven balance set of instruments
• Country Strategy Papers (CSP) or Regional Integration Strategy Paper(RISP)
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• Non-Lending Instruments • Technical Assistance
• Knowledge brokering
• Institutional capacity building (formulation of
macro- and micro-economic policies, project
preparation, appraisal)
• Lending Instruments • Project loans, including line of credit, Guarantee
• Policy-Based Loans
• Grants
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• Two Lending Windows
– Sovereign Guaranteed Operations (public
sector projects through governments at
concessionary terms)
– Non sovereign Guaranteed Operations -
OPSM (private sector projects at commercial
terms)
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• Private Sector Instruments • Senior Debt – Up to 20 years (5 years grace
period), foreign or local currencies
• Guarantees – partial risk, partial credit (long
tenors)
• Subordinated Debt – local currency
• Equity – direct, equity funds, up to 25%
• Technical Assistance – grants for studies, capacity
building
Development Bank African
The
Sectors of interventions
• Infrastructure (Transport, Energy, Water, ICT)
• Governance
• Regional Integration
• Cross-Cutting Themes
• Synergies between the Fund and the Private Sector
• Agriculture, Natural Resource
• Management, Social and Human Development
• Gender, Environment and Climate Change
• Knowledge activities
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Development Bank African
The
Typical Interventions
• Energy (e.g. Power, thermal, hydro, wind, solar, Geothermal, EE)
• Transport (e.g. ports, roads, airports, rails)
• ICT (e.g. submarine cable, satellite, telephony)
• Oil & Gas (e.g. exploration, extraction, refining, pipelines)
• Mining (e.g. extraction, refining, smelting)
• Manufacturing (e.g. cement, fertilizers)
• Agribusiness (e.g. sugar, oils, timber, bio-fuels, fishing)
• Hospitality (e.g. hotels, resorts)
• Health & Education (e.g. hospitals, schools)
• Financial sector (e.g. banks, insurance, leasing, microfinance)
• Water and Sanitation (infrastructure, management, etc.)
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Development Bank African
The
ENERGY SECTOR PROJECTS
Typical Projects Description
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Development Bank African
The
Towards a New Energy Policy
Ten (10) key principles:
• (i) ensuring energy security and increasing access for all
• (ii) moving steadily to a cleaner energy path
• (iii) pro-poor focus
• (iv) enhanced governance at the national level
• (v) innovation to increase financial flows in the energy sector
• (vi) integrating aid effectiveness principles
• (vii) social and environmental responsibility
• (viii) integrating response to climate change
• (ix) fostering knowledge transfer, and
• (x) mainstreaming gender dimension.
Development Bank African
The
Cap-Vert Power Interconnection and Distribution
• Total: UAC 56,649,000
• IA: Ministry of Industry
• Location: six Island-Cap Vert
• Start Date : 02/11/2012
OMVG Hydroelectric
generation and transmission
system
• Total: UAC UAC 491,000,000
• IA: SPV-OMVG
• Location: Gambia, Guinea,
Guinea-Bissau, Senegal
• Start Date : 02/11/2012 Power distribution MV/LV; rural
electrification; Control Equipment
(SCADA)
Two HP Dam: Kaleta, 240 MW (Guinea),
Sambangalou (Guinea), 123 MW plus
interconnections
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1 UAC=1.11374 Euro = 1.60936 USD
(Bank’s monthly rate – Sep 2011)
Development Bank African
The
Inga HP and related Interconnections Studies
• Total: UAC 10,567,000
• IA: Govt DRC
• Location: DRC and Regional
• Start Date : End study: o6/12
Eskom Renewable Energy
Projects
• Total: UAC 881,154,380
• IA: ESKOM HOLDINGS LTD
• Location: South Africa
• Start Date : 29/05/2012
Market study, prefeasibility, feasibility,
EIA, Communication, Management of the
grand Inga site- estimated phase one HP:
4 to 6 GW and estimated USD8 billions
Investments in renewable energy:
Component-1, 100 MW Sere Wind Power;
component-2, 100 MW Upington
Concentrating Solar Power
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Development Bank African
The
Link to Projects Description: http://www.afdb.org/en/projects-and-operations/project-portfolio/
Development Bank African
The
WATER SECTOR PROJECTS
Typical Projects Description
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Development Bank African
The
Gambia - Rural Water Supply Sanitation Project
• Total: UAC 4,950,000
• IA: Department of Water
• Location: Gambia
• Start Date:12/02/2013
Lake Victoria Water and
Sanitation Program
• Total: UAC 81,940,000
• IA: Lake Victoria Bassin Commission
• Location: Lake Victoria Basin
• Start Date:23/11/2011
The programme consists of the following
components: Provision of Infrastructure;
Community Development; Capacity
Building and Training ; Management and
Technical Assistance
Water: infrastructure to provide water
Sanitation: Provision of drainage facilities
and communal toilet; Solid Waste
Management: Provision of equipment for
solid waste management system and
Storm Water Drainage; Inst. capacity-
building 18
Development Bank African
The
National Rural Water Supply Program-Mozambique
• Total: UAC 11,700,000
• IA: Water Department
• Location: NAMPULA , ZAMBEZIA
PROVINCE MOZAMBIQUE
• Start Date:09/11/2011
Urban Sanitation in Abidjan
• Total: UAC 23,300,000
• IA: Ministry of Construction
• Location: Abidjan
• Start Date: 24/11/2011
Rural water supply and sanitation
coverage in Nampula and Zambezia
Provinces (Planning, Infrastructure,
technical assistance, testing)
Development of infrastructure of
sanitation and drainage of storm water in
the basin of Gourou: comprehensive
study of the integrated management of
the basin side of the Gourou
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Development Bank African
The
HOW TO WORK WITH US
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Development Bank African
The
Current solicitation
http://www.afdb.org/en/about-us/corporate-procurement/procurement-notices/current-solicitations/
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Development Bank African
The
Eligibility for Non-Sovereign Operation (Private sector)
• All member countries of the Bank are eligible to participate in all the procurements.
• Non-Sovereign Financing
• An enterprise/project must be located and incorporated in the Regional Member Countries (RMCs) of the Bank, whether promoted by African or non-African investors
• An enterprise/project must be majority-owned (51% +) by private-sector investors, or publicly owned with strong financial standing and proven managerial autonomy.
• Projects for the establishment, expansion, diversification and modernization of productive enterprises. No direct financing of trade.
• Maximum investment of 1/3 of total project cost
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Development Bank African
The
The activities of the Private Sector comprise
• Non-sovereign guaranteed (NSG) lending activities (assistance to private entities) in the area of Financial Intermediation, Industries & Services, PPPs & Infrastructure, and Microfinance
• Non-lending activities include studies, initiatives and new programs.
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Development Bank African
The
2012-2014 Financing Targets (in UA million)
2011 2012 2013 2014 2012-2014
ADB 3,600 3,600 3,600 3,600 10,800
ADB Public 2,490 2,324 2,260 2,193 6,777
ADB Private 1,110 1,276 1,340 1,407 4,023
ADF 1,900 2,100 2,000 1,900 6,000
NTF 20 25 25 25 75
Bank Group 5,520 5,725 5,625 5,525 16,875
http://www.afdb.org/en/about-us/structure/programming-budget-department/ 1 UA = 1,40935 USD
Development Bank African
The
LOOKING FORWARD
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Interconnecting, integrating and transforming a continent
Programme for Infrastructure Development in Africa
DIAGNOSIS OF EXISTING SITUATION
OUTLOOK 2040
STRATEGIC FRAMEWORK
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 Arena
Consensus resulting from extensive sectoral and regional
consultative process 26
Interconnecting, integrating and transforming a continent
Programme for Infrastructure Development in Africa
PIDA’s Priority Action Program: establishing priorities
SELECTION CRITERIA
Agreed between PIDA Stakeholders
PIDA PAP
(1) eligibility and regional integration; (2) feasibility and readiness; (3) development impacts
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Interconnecting, integrating and transforming a continent
Programme for Infrastructure Development in Africa
Ambitious, but affordable
• Total PIDA cost is US$ 360 billion by 2040.
• PIDA PAP (2012-2020)- first set of immediate priorities - contains 51 projects and programmes
• Overall capital cost of delivering the PAP from 2012 through 2020 - nearly $68 billion, or about $7.5 billion annually (below 1% of African GDP)
24 transport
15 energy
9 TWR
3 ICT
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Interconnecting, integrating and transforming a continent
Programme for Infrastructure Development in Africa
Energy Generation Countries Utilities/Org Status
Great Millennium Renaissance ETH EEPCO S4B: Construction
Mphanda Nkuwa MOZ HMN S2: Pre-feasibility
Lesotho HWP phase II LSO LHDA/TCTA S1: Concept/Ident.
Inga III LH DRC MHRE S3A: Feasibility, Detailed
Design and Structuring
Sambangalou hydro GIN OMVG S3A: Detailing and
Structuring
Kaleta hydro GIN MEE S4: Construction
Batoka hydro ZMB, ZAM ZESCO, ZESA S3A: Feasibility
Ruzizi III hydro RWA, DRC EGL S3B: Financing close
Rusumo Falls hydro RWA EWSA S3B: Financing Close
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Interconnecting, integrating and transforming a continent
Programme for Infrastructure Development in Africa
Energy
Projects -
Interconnector Countries Utilities RECs / PP Status
North-South
Interconnector Corridor
EGY, SUD, ETH, TAN, KEN,
ZAM, ZIM, MOZ, SA
EEHC, MED, EEPCO;
EEPCO, TANESCO,
KPLC, OPPPI, ZESCO,
EDM, ZESA, ESKOM
COMESA,
SADC/SAPP S2, S3A
Central Africa (Inga-SA) DRC, ZAM, ZIM, SA
ENE, SNEL, SEGESA,
SEEG, SONEL, STEE,
NamPower, ESKOM
ECCAS,
SADC/CEAPP
S2:pre-
feasibility
WA Corridor (NGR-SEN) NGR, BEN, TGO, GHA, CI,
LIB, SIL, GUI, B-GUI,
GAM, SEN
EDG, LEC, NPA, CIE,
ECG, CEET, SBEE,
NIGELEC, PHCN
ECOWAS/WA
PP S2
NA Corridor EGY, LYB, TUN, ALG, MOR STEG, GECOL, EEHC UMA/COMEL
EC S3A
Nigeria-Algeria Gas
Pipeline NGR, ALG NNPC ECOWAS S2
Kenya (Eldoret)-Uganda
(Kampala): Oil pipeline KEN, UGA MOE, MEMD EAC S1 (?)
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Development Bank African
The
PIDA PAP TWRM
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1 Palambo Regulation dam to imporve
navigability of Obangui River with
added hydropower component
S2 155 Congo River
Basin
ECCAS CENTRAL
2 Fomi Hydropower station in Guinea with
irrigation water supply for Mali and
regulation of the Niger river (9
Countries)
S3 384 Niger River
Basin
ECOWAS WESTERN
3 Multi-sectoral
Investment
Opportunity
Studies
Identification and preparation of
investment programmes in the basin
S1 1 Okavango River
Basin
SADC SOUTHERN
4 Lesotho HWP
Phase II - water
transfer
component
Water transfer programme supplying
water to Gauteng Province in SA
S3 1 100 Orange-Senqu
River Basin
SADC SOUTHERN
5 Gourbassy Multi-purpose dam located in Guinea:
regulation of the Senegal river (4
Countries)
S2 NA Senegal River
Basin
ECOWAS WESTERN
6 Noumbiel Multi-purpose dam with hydropower
generation (for Burkina Faso and
Ghana) component
S1/S
2
NA Volta River
Basin
ECOWAS WESTERN
7 Nubian Sandstone
Aquifer System
IMPLEMENTATION OF REGIONAL
STRATEGY FOR THE UTILISATION
OF THE AQUIFER SYSTEM
S4 5 Nubian
Sandstone
Aquifer System
UMA NORTHERN
8 NORTH-WEST
SAHARA
AQUIFER
SYSTEM
PRE-FEASIBILITY STUDIES FOR
IMPROVED USE OF THE AQUIFER
SYSTEM
S2 2,5 North West
Sahara Aquifer
System
UMA NORTHERN
9 IULLEMEDEN
AQUIFER
SYSTEM
PRE-FEASIBILITY STUDIES FOR
IMPROVED USE OF THE AQUIFER
SYSTEM
S2 10 Iullemeden and
Taoudeni/
Tanezrouft
Aquifer System
UMA NORTHERN
Development Bank African
The
Scaling up NEPAD Infrastructure Project Preparation Facility (IPPF)
Status:
• Resource mobilization strategy in progress
• Inviting to new Donors to make contributions
• Align with rationalization and strengthen existing
IPPFs
• Focus on regional projects of transformational nature
Partnership - How to get involved?
AUC • Political Leadership and
Consensus, advocacy
NPCA
•Programme Coordinator, Custodian of Database and Information system and project fiches
REC or
SRO
• Regional Coordinator
COUNTRY
• Project Implementation Agencies
AFDB Partner of
Choice
Development Bank African
The
Merci! Thank You!
Development Bank African
The
Environmental and social safeguards policies