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P RIVATE I NFRASTRUCTURE D EVELOPMENT G ROUP. Members A consortium of nine donor organisations who have joined together to help facilitate private sector.

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Presentation on theme: "P RIVATE I NFRASTRUCTURE D EVELOPMENT G ROUP. Members A consortium of nine donor organisations who have joined together to help facilitate private sector."— Presentation transcript:

1 P RIVATE I NFRASTRUCTURE D EVELOPMENT G ROUP

2 Members A consortium of nine donor organisations who have joined together to help facilitate private sector investment in developing countries to provide infrastructure vital to boost their economic growth and combat poverty. Austria Switzerland Australia The Netherlands Germany United Kingdom Ireland World Bank Group Sweden(through the IFC)

3 Constraints to Private Investment Public sector capacity constraints Lack of bankable projects Shortage of long-term FX debt Shortage of local debt Limited developer capacity

4 PIDG Structure

5 PIDG Facilities PIDG Facility: Technical Assistance Facility DevCoInfraCo Ltd InfraCo Asia Emerging Africa Infra- structure Fund Guarant- Co ICF-Debt Pool Green Africa Power Market / Policy Challenge Project preparation resources Affordability Public authority transaction capacity Shortage of bankable projects Shortage of long- term debt finance Shortage of long- term local currency finance Limited appetite of commercial banks to lend to projects long term Lack of cost reflective tariffs; high upfront capital costs PIDG Facility Response Grants to build capacity, support project preparation and delivery Transaction advisory support to Govts. in developing countries Develops projects in Africa Develops projects in Asia Long-term loans to private sector projects in sub- Saharan Africa Local currency guarantees in developing countries Long-term loans to projects to address financing gaps in developing countries Quasi- equity patient capital for RE projects in Africa Operating since 20042003200520102002200620092014 (expected)

6 Facility Funding (US$ m) Emerging Africa Infrastructure Fund GuarantCoInfraCo InfraCo Asia Development Technical Assistance Facility DevCo Infrastructure Crisis Facility Debt Pool Totals DFID 145.0695.6163.3059.8710.2649.770.00423.87 DGIS 27.000.0035.480.003.505.500.0073.65 FMO 0.0034.000.00 34.00 Sida 20.0015.000.00 2.003.280.0042.44 IFC/World Bank 0.00 7.9111.750.0021.96 SECO 10.0017.008.500.006.500.00 44.33 ADA-BMF 0.00 6.420.005.387.000.0020.08 Irish Aid 0.00 4.110.00 5.38 ADB 0.00 1.000.00 1.00 KFW 0.00 9.4110.67 Total 202.06161.61113.7059.8740.6577.299.41682.47

7 Activity to end of 2012 PIDG members have contributed over US$680m PIDG Facilities have committed funds of over US$1.4bn to 130 infrastructure projects in 55 different countries US$ 26.7bn PSI mobilised PIDG Facilities have financially closed 87 projects across ten infrastructure sectors; 39 projects operational 73% of PIDG-supported projects are in DAC I / DAC II countries; 45% in Fragile and Conflict Affected states* * Based on OECD INCAF methodology

8 Focus on Africa 74 projects at financial close – 90% US$1.01bn committed – 72% Predicted PSI generated: $15.6bn Predicted number of people with new/improved services: 150 million Financially closed projects

9 Azito Power, Côte D’Ivoire Conversion of a single cycle to a combined cycle gas fired power plant. Total investment mobilised was US$430 million of which EAIF provided US$30 million. Tax benefit to Côte d’Ivoire government of approx. US$7.5 million. Increase in national power supply of 15%. 400,000 tonnes of CO 2 saved per year. 5.26 million people with access to improved electricity supply.

10 Nairobi Commuter Rail, Kenya Upgrade and expand existing 160km commuter rail network and new rail link to JKIA Airport New rolling stock, signalling and upgraded stations Expected investment USD325m Up to 100,000 passengers per day Reduce congestion, improve safety Developed by eleQtra as a joint venture between Infaco Africa and Kenya Railways Contract with private sector contractors and operators to rehabilitate and operate the system being competitively tendered

11 Thank you For more information, please visit www.pidg.orgwww.pidg.org


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