1 PIDA in the Energy Sector AfDB/AUC Workshop 17th UPDEA Congress Tunisia, 29 May 2012 Interconnecting, Integrating, and Transforming a Continent

2 WHAT PIDA IS? -Definition  PIDA is a program dedicated to facilitating continental integration, socioeconomic development and trade, through improved regional infrastructure

3 WHAT PIDA IS? -Objectives and Outputs A Strategic Framework for 2040 Implementation strategy & process OutputsObjectives Infrastructure Development Programme (2040) Vision on Africa’s infrastructure Strategic objectives Sector policies Regional and continental physical infrastructure projects Priority projects and measures Phases: Short term ( ), Medium term ( ) and Long term ( ) Rolling plan of priority actions Financing Monitoring & Evaluation process

4 PIDA PROCESS: Study Phases Phase I : Diagnostic, analytical work and projections Phase II : Formulation of Sector Policies and Infrastructure Development Plan Phase III : Synthesis and Recommendations

5 DIAGNOSIS OF EXISTING SITUATION OUTLOOK 2040 STRATEGIC FRAMEWORK PIDA 2040 Vision from the AUC 2004 Strategic Plan : Build an integrated, prosperous and peaceful Africa, driven by its citizens and representing a dynamic force in the International Arena PIDA PROCESS

6 Developing major regional and continental hydroelectric projects Implementing high-capacity oil refineries and oil & gas pipeline projects Developing renewable energy resources Energy: develop efficient, reliable, cost-effective, and environmentally friendly infrastructure; and, enhance access to modern energy services PIDA OUTCOMES: Findings per sector

7 PIDA’s Priority Action Program: establishing priorities SELECTION CRITERIA Agreed between PIDA Stakeholders (1)eligibility and regional integration; (2)feasibility and readiness; (3)development impacts (1)eligibility and regional integration; (2)feasibility and readiness; (3)development impacts PIDA OUTCOMES: The PAP

8 24 transport 15 energy 9 TWR 3 ICT PIDA PAP broken down into 51 projects/programs PIDA OUTCOMES: The PAP

9 PAP Investment Cost: $68 bn BY SECTOR BY REGION PIDA OUTCOMES: The PAP

10 Generation & Transmission: 2020 & 2040 The energy infrastructure program focuses on major hydroelectric projects and interconnects the power pools to meet the forecast increase in demand. One regional petroleum products pipeline is also included. PIDA OUTCOMES: The PAP

11 PAP Investment ($68 bn) Less than 0.2% of 2011 GDP, or 1% of national budgets, or 5% of Investment budgets AMBITIOUS BUT AFFORDABLE Mainly from domestic sources (50% in 2020 to 75% in 2040) Private sector, ICA members & emerging partners RESOURCE MOBILIZATION Needs are estimated to 5 - 8% of total investment cost PROJECT PREPARATION PIDA OUTCOMES: The PAP

12 Implementation Strategy & Process

13 Financing will need to come mostly from domestic sources (public & private) Domestic Bond Markets, inc. remittances Sovereign Wealth Funds Enabling environment for more private participation PUBLICMIXPRIVATE PIDA CHALLENGES

14 Country role in PIDA implementation  Projects are implemented by countries on whose territory they are located and by their agencies (public or private) Countries are critical and efficient players Implement “soft” components (harmonisation of continental and regional policies) Financing project preparation, capital investment, operation and maintenance PIDA CHALLENGES

15 Acknowledging PIDA as the African-owned and African-led programme Tackling soft governance issues necessary for true regional integration - harmonization, facilitation, monitoring, and evaluation Keeping strong political commitment Advocating for strong partnerships CONCLUSION Shared responsibility

16 CONCLUSION Competitiveness would be established in niche markets and in a growing spectrum of mainstream activities, including agriculture and manufacturing. Share of world trade would be at least double today's share of 2% Up to 15 million new jobs would be created. PIDA impacts

17 Regional trade would be twice today’s share of continental GDP Water resources and basins would be secured for future generations. ICT bandwidth would handle demand swells by a factor of 20. Expanded power trade would lower carbon emissions by 20% CONCLUSION PIDA impacts

18 CONCLUSION Next steps 1.Implement quick wins in the PIDA-PAP and prepare all projects for implementation 2.Support targeted capacity building for AUC, NPCA, RECs, Spec. Institutions & Agencies 3.Develop a resource mobilization strategy 4.Mobilize finance for project preparation 5.Monitor progress and report on delivery

19