1. Fostering Infrastructure Development in Africa AFRICAN DEVELOPMENT BANK GROUP Bocar Cisse Senior Financial Analyst, African Development Bank NEPAD-INFRASTRUCTURE PROJECT PREPARATION FACILITY NEPAD-IPPF SPECIAL FUND February (2012)

2. AFRICAN DEVELOPMENT BANK GROUP NEPAD IPPF Strategic Context History of NEPAD IPPF Achievements to date Investment Opportunity Consultancy Needs (2012 WP) Financing Gap ( Projects yet to reach Financial Close ) OUTLINE

3. AFRICAN DEVELOPMENT BANK GROUP Strategic Context G20 Infrastructure Action Plan highlights the importance of regional infrastructure for African growth to prioritize project preparation financing, notably the NEPAD Infrastructure Project Preparation Facility PIDA Programme for Infrastructure Development in Africa Endorsed at the AU Heads of State Summit in January 2012 Set regional priority integration infrastructure needs IPPF played a key role in preparation and delivery

4. AFRICAN DEVELOPMENT BANK GROUP Strategic Context Infrastructure Need in Africa (according to PIDA) Bankable regional infrastructure remain a high priority for Africa PIDA study shows 22bn $ Gap on infrastructure spending Project preparation costs in Africa average 10- 12 % of total project cost Regional project preparation could be as high as 2-2.5 billion a year Beyond any one facility’s Capacity

5. AFRICAN DEVELOPMENT BANK GROUP NEPAD-IPPF(History) PURPOSE:  To assist African countries, RECs and institutions to prepare high quality, viable regional/continental infrastructure projects that would be ready to solicit public and private financing  To support the creation of an enabling environment for private & public sector participation in infrastructure,  To support targeted capacity building initiatives to enhance the sustainability of existing and planned infrastructure developed in the continent, in fulfillment of the NEPAD objectives. PURPOSE:  To assist African countries, RECs and institutions to prepare high quality, viable regional/continental infrastructure projects that would be ready to solicit public and private financing  To support the creation of an enabling environment for private & public sector participation in infrastructure,  To support targeted capacity building initiatives to enhance the sustainability of existing and planned infrastructure developed in the continent, in fulfillment of the NEPAD objectives.

6. AFRICAN DEVELOPMENT BANK GROUP NEPAD-IPPF(History) KEY CHARACTERISTICS:  Facility has been seed financed by the Government of Canada in line with Kananaski’s G20 meeting decision in 2002.  The Facility is untied and has been enlarged into a multi-donor facility which includes Canada, Denmark, UK (DFID), Germany, Spain and AfDB.  Quick access and disbursement Facility  Eligibity : African countries and institutions and PPP promoters  Sectors: Water, Energy, Transport, and ICT  Facility is managed by the ADB. KEY CHARACTERISTICS:  Facility has been seed financed by the Government of Canada in line with Kananaski’s G20 meeting decision in 2002.  The Facility is untied and has been enlarged into a multi-donor facility which includes Canada, Denmark, UK (DFID), Germany, Spain and AfDB.  Quick access and disbursement Facility  Eligibity : African countries and institutions and PPP promoters  Sectors: Water, Energy, Transport, and ICT  Facility is managed by the ADB.

7. AFRICAN DEVELOPMENT BANK GROUP Achievements to Date 78 m people directly and around 400 m people indirectly benefiting from access to infrastructure 2% increase in energy 25 to 50% reduction in energy cost significant reduction in transport cost More than 1 million jobs created Investment leveraged : $ 5.3bn 13 Supported Projects reached financial closure Portfolio of 46 Projects

8. PROJECTS OF THE 2012 work programme AFRICAN DEVELOPMENT BANK GROUP Extension of San Pedro Port, Côte d’Ivoire, phase II Purpose: Detailed design Countries: Côte d’Ivoire and Guinea, Liberia, Mali Status: Research of co-financiers Total Project Cost: USD 3,21 million IPPF contribution: around USD 1,5 million Co-financiers or co-financing need: up to USD 2 million NAVISAT project, Egypt Purpose: continuation of a study funded by the AfDB MIC fund. New activities include: Finalization of detailed business and technical studies; Finalization of frequency coordination study Implementation of program management office Countries: Egypt & the Entire African Continent Status: Screening stage Total Project Cost: USD 2.6 m IPPF contribution: up to USD 1.5 m Co-financiers or co-financing need: USD 1.1 m

9. Projects in need of Financing Pojects yet to reach financial closure: Zambia-Tanzania-Kenya Electricity interconnexion project (EAC) ECOWAN (ECOWAS) SATA Backhaul Links (SADC) COMTEL project (COMESA)

10. Description Study: Road section Malawi Zambia and Mozambique Cost: 2million USD 65%.1% from NEPAD IPPF 29.1% JICA Status Bank is considering financing investment for 1 st phase Consultant to undertake studies will be procured through international bidding using Bank rules for the procurement of consultants NACALA ROAD CORRIDOR Mozammbique Ongoing Activities

11. Description Study: Power interconnection Ghana and Burkina Faso Cost: 1.90 million USD 500k USD from NEPAD IPPF Other partners(USAID,AFD- DBSA,VRA, SONABEL Status Bank is considering financing investment for 1 st phase Physical implementation Ongoing. Ghana Burkina Interconnection Ghana

12. AFRICAN DEVELOPMENT BANK GROUP Tunneling of Fund IPPF is Promoting the concept of Tunnel of fund Strategic Decision to Focus on steps 2 to 5 and step 1 to be linked to specific project TF applied last year to the San Pedro Port Extension

13. AFRICAN DEVELOPMENT BANK GROUP THANK YOU MERCI DANK U THANK YOU MERCI DANK U Contacts Bamory TRAORE Lead, Coordinator NEPAD-IPPF NEPAD, Regional Integration and Trade Department African Development Bank Tel : (216) 71 10 22 23 Fax : (216) 71 33 26 94 b.k.traore@afdb.org Nepad-ippf@afdb.org Contacts Bamory TRAORE Lead, Coordinator NEPAD-IPPF NEPAD, Regional Integration and Trade Department African Development Bank Tel : (216) 71 10 22 23 Fax : (216) 71 33 26 94 b.k.traore@afdb.org Nepad-ippf@afdb.org