PIDA Status, Next Steps & Challenges African Stakeholders Meeting ICA Annual Meetings Paris, France – May 16th, 2011

Agenda Status update 1 Challenges 2 Issues for guidance 3

The Programme for Infrastructure Development in Africa (PIDA)… Programme of regional infrastructure projects Transport Energy ICT Transboundary Water Joint initiative of AUC, NPCA & AfDB

Objective: realize AU Abuja treaty Facilitated integration Improved infrastruct. African Economic Community

Establish a Strategic Framework PIDA objectives Establish a Strategic Framework Establish an Infrastructure Development Programme up to 2040 Prepare an Implementation Strategy and Processes

PIDA Implementation Road Map Inception Phase Planning Phase Programming Phase Consensus Building Phase Approval Process

Phases of the PIDA Study 1 of 2 INCEPTION PLANNING Inception Report Political/Media Launch Kick-off Workshop Methodological brief on outlook for future Outlook for the future & challenges July 2010 September 2010 - April 2011

Phases of the PIDA Study 2 of 2 CURRENT STATUS Programming Consensus Building RECs, Steering Committee & High level meetings Preparations of sector programs and Synthesis Report Strategic Policy Options Projection of Needs Program outlined by sector May 2011 - September 2011 October 2011 - January 2012

Regional Capital Investments $19 Billion/year 2.3 billion per year for roads 700 million per year on rail systems 900 million per year on ports 1.3 billion per year on Airports TRANSPORT $7 billon per year for regional components (+31 billion/year for new generation). ENERGY Ongoing investments = $1.25 billion $2 billion per year in fiber optic cables ICT 5 billion per year investment is needed on irrigation expansion Water Resources

Agenda Status update 1 Challenges 2 Issues for guidance 3

Inherent tensions in infrastructure planning 6% GDP growth ambitious but achievable GDP growth deepens infrastructure crisis Inadequate Infrastructure may hamper GDP growth Policy issues are assumed to be solved PIDA

Limiting factors identified Policies are not harmonized: Absence of legal disincentive Commitment at national level Political willingness to regional integration Technical capacity Insufficient financing Lack of creditworthiness & public finances Risk perception Confusion and overlap in responsibilities

Projects selected within strategic framework Learn from the past… Avoid the STAP Trap Ensure ownership Ensure financing Projects selected within strategic framework

Architecture for PIDA implementation High level advocacy – AU assembly Monitoring and evaluation AUC NPCA RECs Policy changes Countries Project financing Construction, O & M Countries SPVs Project screening and selection ICA++ AfDB

Agenda Status update 1 Challenges 2 Issues for guidance 3

Delivery Roadmap Validation by Technical Review Team, including strengthened Bank participation and PoE Will endorse selection criteria for screening REC lists Early July – Strategic briefs Validation of prioritized project lists at REC level September – REC Validation workshops Final Validation before submission to AU October – Synthesis report

G20 Issues brought forward by MDB Working Group Infrastructure Project Preparation funds for PPP and regional projects (new or replenishment) Raising IMF debt ceilings to permit more borrowing for infrastructure Better procurement and safeguard harmonization to permit easier joint funding of project

Questions for discussions G20 Issues for discussion & extension of ICA membership Acceptance of strict screening criteria before discussing list of projects Role of MDBs hard investments or capacity building?

THANK YOU – MERCI OBRIGADO – شكرا