African Development Bank: Climate Change and Infrastructure Development ADF VII, Addis Ababa, Ethiopia 14 October, 2010 Mr. Emanuel Nzabanita Acting Manager Energy Division Eastern and Southern Regions 1

The infrastructure Deficit  Infrastructure deficiency significantly hinders the possibilities for economic expansion.  Africa’s Infrastructure is weak and costs significantly higher than other parts of the developing world.  As a result, MDG’s are far from being met  ICA’s (AICD) report, finds that Africa needs to invest $93.4 billion per year in energy, telecoms, transport and water infrastructure over the next decade. 2

Africa’s Investment requirement ($Bn)  Power is Africa’s largest infrastructure challenge 3

Missing Links in Africa’s Infrastructure 4  The existing missing Links in Africa’s Infrastructure need to be closed.  Road Network  Energy  Broadband ICT

5 Infrastructure Missing Links-Road Network

6 Infrastructure Missing Links-Energy Programs

7 Infrastructure Missing Links-Broadband ICT Programs

8 Infrastructure Investment Benefits  Facilitates regional integration  Enables intra regional trade  Connects regions to global markets  Attracts private sector investment  Makes it possible to harness regional comparative advantages  Reduces impacts of disasters (flooding/drought).

Climate Change Additional Burden to Infrastructure Development. 9  Given the current infrastructure challenges, climate change only increases the problem.

Climate Change: Additional Burden to Infrastructure Development.  Heavy rainfall events cause Disruption of settlements, commerce, transport and societies due to flooding; pressures on urban and rural infrastructures and loss of property.  Areas affected by drought will experience Water shortages for communities and industry Reduced hydropower generation potentials; Increased potential for population migration.  Without adaptation measures, CC will strain current infrastructure and widen the financing gap. 10

Need to Build Climate Resilient Infrastructure in Africa  Ensuring transition to a low carbon economy by investing in high performance infrastructure and green technologies.  Building Climate resilience to enable projects and programs withstand the negative effects of a changing climate Upgrading existing infrastructure to cope with changing hydrology and rising temperatures. Developing climate related information for decision-making processes. 11

Need to Promote Regional Integration  Connecting Africa to itself and the rest of the world will increase our adaptive capacity. Transport Corridors Power Pools Maritime Ports Regional Broadband ICT Networks etc  Integration reduces the cost of doing business and creates larger markets for private sector participation. 12

Programme for Infrastructure Development in Africa (PIDA)  Launched in 24 July 2010 in Kampala, Uganda during the 15 th African Union heads of State and Government summit. Led by AUC, NEPAD Secretariat and the African Development Bank (Executing Agency). Objective to promote socio-economic development and poverty reduction through improved access to integrated regional infrastructure.  Programme to ensure the integration of Climate resilient infrastructure. 13

Solar Thermal Power Station, Morocco  This plant combines solar and thermal power  It will produce up to 2000 MW of electricity with an annual saving of one million tons of oil. 14

The Sahanivotry Mini Hydro Power Plant, Madagascar  The project has an installed capacity of 15 MW and an average gross electricity generation of 90 GWh  It will produce 10% of the country’s total supply of electricity 15

16  First PPP concession in the sector.  Reduces pollution, alleviates the crippling traffic situation in Lagos State. Lekki Toll Road Project, Nigeria

Main One Cable Project: West Africa  A high-tech broadband cable which will enhance access to reliable and timely information in West Africa.  Instrumental in assisting our Regional Climate Centres and relevant institutions in generating early warning systems necessary for communities to build climate change defense systems.

AfDB’s CC Financing Mechanisms  AfDB has set up important mechanisms:  Congo Basin Forest Fund (CBFF)  Africa Water Facility (AWF)  ClimDev-Africa Special Fund  Africa Carbon support Project  Proposed Africa Green Fund (AGF) Leveraging additional funds, through:  Climate Investment Funds (CTF and SCF)  Global Environment Facility (GEF) 18

Conclusion  Climate change constrains development efforts in Africa.  Improved Infrastructure availability will reduce vulnerabilities and increase adaptive capacities of African economies.  Low-carbon energy is fundamental to mitigation and sustainable development.  Widespread access to water is necessary for adaptation priorities  ICT has a transformational impact by enabling private sector access finance and increasing market efficiency. 19

Conclusion  The African Development Bank remains focused on suitable infrastructure development and has extended the climate change action plan covering the period from (2011 – 2015).  The Bank is also playing a leading role in dialogue and building consensus on how to meet Africa’s climate change challenges. 20

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