Africa Infrastructure Desk (Afri-ID)

Transcription

1 Africa Infrastructure Desk (Afri-ID)

2 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 2 Contents 1 NEPAD Business Foundation 2 NBF Infrastructure Programmes 3 Learnings

3 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 3 Role of the NEPAD Business Foundation Who We Are: We are a pan-african non-profit organisation which mobilises private sector to drive economic growth aligned to the NEPAD Strategic Framework What We Do: The NEPAD Business Foundation (NBF) plays the role of neutral facilitators that work with you to support strategic projects of sustainable developmental importance that deliver real impact across the African Continent

4 NBF Services Interventions INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 4 NBF Solution Inclusive and Sustainable Economic Growth Business for development Objective : Mobilise private sector development to engender long term sustainable economic and social growth in Africa Trade, Investment and Market Development Enabling environment Policy, regulatory harmonisation, Trade facilitation Infrastructure Transport Water Energy (power. gas) ICT Finance & investment Business matchmaking Project pipelines Fund management Market development Market analysis Market access Local economic development Local supply chains Sustainable Landscapes

5 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 5 Over 50% of Infrastructure Projects are still at early stage OBJECTVE: 1. To support the implementation of regional infrastructure masterplans (e.g. PIDA, SADC RIDMP) and projects by mobilising the private sector NBF ACTIVITIES 1. Project champion to drive the implementation of priority regional projects by leveraging the private sector 2. Facilitate preparation of infrastructure projects through early stage engagement of the private sector 3. Joint effort with financiers to solve strategic infrastructure issues in Africa 57% CHALLENGES: Lack of project development expertise (technical, financial, legal) Shortage of project development capital Bad investment climate Weak project champions EXPECTED OUTCOMES 1. Public project Sponsors receive services and infrastructure from the Private Sector that they expect/require 2. Private Sector is able to submit good proposals to Public Sector that satisfy their expectations and achieve value for money 3. Continuity/progress on priority infrastructure projects on the continent 4. Africanising infrastructure

6 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 6 Role of the NBF Government e.g Ministry of Transport/ Finance/Energy etc Project Owners e.g State Owned Entities End-users/Private Sector/Customers e.g Mining, oil, retail, logistics companies, shipping lines etc Project Agreements Regional Stakeholders e.g SADC, NPCA, AU, Regional Associations MOU s Neutral Facilitator Consulting Contracts Consultants e.g Engineering/Legal/Finance experts Project Preparation e.g PPDF, IIPSA, IPPF, USTDA, SDM Developers and Financiers e.g Private Equity, Capital Markets, ODA, contractors, EPCs, advisors etc

7 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 7 NBF s Early Stage Involvement PROJECT LIFE CYCLE Step 1 Enabling Environment Step 2 Site Identification / Concept Step 3 Pre-feasibility Study Step 4 Feasibility Study Step 5 Financing / Contracts Step 6 Project Implementation Activities/Interventions: Neutral facilitation Stakeholder Management Project Origination Research Fund raising Technical/financial Advisory Public private dialogue Procurement Training and Capacity building Due diligence Project/ Programme Management Frameworks For Implementation: African Union MoU NEPAD Planning and Coordinating Agency MoU SADC Secretarial MoU SADC PPP Unit MoU SADC DFRC MoU TPA MoU PROJECTS UNBLOCKED AND OPPORTUNITIES OPENED Outputs: Project origination and portfolio tracking Project due diligence Assistance with Project Preparation for Pre-Feasibility and Feasibility Studies (incl scoping, funding, procurement, technical advisory, early stage financial structuring, etc) Assistance with enabling legal, policy, institutional environment Assistance to develop supporting markets Outcomes: Progress on priority transport projects (km) Progress on priority water projects (litres) Progress on priority energy projects (MW) Impact: Improved regional integration Improved economic environment Reduced cost of business Local Economic Development

8 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 8 NBF Infrastructure OBJECTIVE To support the implementation of regional infrastructure masterplans (e.g. PIDA, SADC RIDMP) and projects by mobilising the private sector NBF ROLE Project champion to drive the implementation of priority regional projects by leveraging the private sector Facilitate preparation of infrastructure projects through early stage engagement of the private sector Current Initiatives North-South Rail Corridor SADC Regional Gas Task Force Local Economic Development Guidelines for Tanzania Infrastructure Development Planned Initiatives Champion a second project supporting power supply to Zambia/DRC copper belt Local Economic Development Guidelines for adoption by SADC/NPCA/AUC (incl Country Readiness Report, Training, etc) Current Initiatives SADC PIDA Infrastructure Project Acceleration Programme (incl Dondo Dry Port, Beitbridge Border Post, ZTK Transmission Line, Francistown- Nata Road) PPP Training Planned Initiatives Support other Infrastructure Acceleration Programmes (e.g. LAPSSET, Djibouti) EU-Africa Water Partnership Programme

9 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 9 Contents 1 NEPAD Business Foundation 2 NBF Infrastructure Programmes 3 Learnings

10 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 10 NBF Infrastructure Initiatives The NBF has established and run a number of joint public-private initiatives (in co-operation with DFIs and donors). These have included: PROGRAMME North-South Rail Corridor SADC Regional Gas Task Force Mine Water Co-ordinating Body Strategic Water Partners Network PPP Training DESCRIPTION a partnership between 7 rail operators and regional stakeholders to develop a seamless rail logistics corridor that will promote the migration of traffic from road to rail support the monetization of the natural gas resources within the SADC region by bringing gas demand and supply on stream at the same time, stimulating broader regional demand and infrastructure investment, Identifying and preparing a shortlist of viable natural gas based anchor projects as well as downstream linkages and densification opportunities a platform for multi-stakeholder engagement and implementation of joint solutions to improve water quality and mine closures in South Africa a partnership between the public sector, private sector and civil society working collectively to close a 17% water gap projected to manifest by 2030 in South Africa Certified PPP Professional training course

11 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 11 NORTH-SOUTH RAIL CORRIDOR

12 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 12 NORTH-SOUTH RAIL CORRIDOR PROJECT OVERVIEW Problem Statement: NSC Rail freight market share is less than 10% Lack of co-ordination between the respective operators (4 countries / 5 operators) resulting in a non-competitive transport solution due to: Service delivery challenges Operational Challenges Infrastructure challenges Infrastructure, equipment and safety challenges Limited available funding Expected Outcomes: Rehabilitation and upgrade of the existing infrastructure and equipment Seamless rail logistics corridor that will promote the migration of traffic from road to rail Innovative funding strategy for the entire corridor Operational and maintenance strategy that will allow efficient, safe and competitive operation of trains. Clear value proposition for why governments and private sector should invest in rail infrastructure and equipment (ZRL) Chingola - Livingstone (NRZ/BBR/Grindrod) Livingstone Beitbridge North-South RAIL CORRIDOR Angola Namibia Sources: Trademark SA, Afri-ID, 2013 DRC Zambia Zimbabwe Botswana Mozambique South Africa (SNCC/ZRL) Lubumbashi/Kolwezi - Chingola (TFR) Beitbridge Durban or Richards Bay

13 All Activities Driven and Executed by NBF INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK Proof of Concept: North-South Rail Corridor 13 Core Project Pillars The NSC Rail project is a true case of regional integration due to the following key elements: Legal and Institutional Frameworks in place Memorandum of agreement signed between all rail operators on the corridor (SNCC, TFR, NRZ, Grindrod/BBR, ZRL) Political Support secured Political support secured by NBF from Ministers of Transport Financing secured Funding secured by the NBF through the SADC PPDF Facility managed by the DBSA Prefeasibility Study Study concluded in Q Signature of NSC MOA in Lubumbashi (DRC) by SNCC CEO Signature of NSC Funding in Johannesburg (RSA) by NBF CEO Meeting of the Committee of Ministers Responsible for Transport & ICT Held on 21 October 2016 (Swaziland) - Decision 10 During the Ministerial meetings held on 21 October 2016 in Swaziland, Ministers were invited to: Commend NEPAD Business Foundation for mobilising resources for the Study. Urge the Rail operators, SARA and other relevant stakeholders to fully collaborate for implementation of the Study; and Urge the NEPAD Business Foundation and the Rail Operators taking part in the Pilot to ensure that all stakeholders are adequately consulted during the Study.

14 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 14 NSC PROJECT NBF ROLE Government e.g Ministry of Transport/ Finance/Energy etc Project Owners Regional Stakeholders MOU s Project Manager/Neutral Facilitator Project Preparation Zambia Railways Limited NSC MOA End-users/Private Sector/Customers Consulting Contract Consultants Developers and Financiers g Private Equity, Capital Markets, ODA, contractors, EPCs, advisors etc

15 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 15 EXPECTED PROJECT IMPACT Improved regional integration and collaboration Increased volume of trade Increased economic growth Local economic development (Job creation - direct and indirect) Support for industrialisation strategy through linkage of functional rail network to industrial hubs Reduced externalities Traffic congestion Loss in economic activity Social costs such as road accidents Reduced carbon footprint Reduced transport costs Reduced cost of import and export of goods Increased export competitiveness Reduced pressure on road infrastructure (physical and cost)

16 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 16 SADC GAS TASK FORCE

17 17 Update And Status Report SADC Industrialization Strategy and Roadmap August 2015 April 2016: SADC-NBF MOU regarding SABF SADC Industrialization Week: 30 July -4 August 2017: Sunninghill Declaration NBF Appointed as Implementing Agent for the DBSA/ENH SADC Regional Gas Market Study & Infrastructure Requirements (April 2018) August 2015:SABF Inaugural Conference April 2016: NBF Launch of SABF Working Groups August 2017: 37 th SADC Summit Decision to establish Regional Natural Gas Committee Awaiting Mandate to Support the Development of the SADC Regional Gas Master Plan Partnering with Private Sector in Developing Industry and Regional Value Chains To enable the NBF to properly execute this mandate, the NBF is setting up a Southern Africa Regional Gas Task Force. The objectives of the Southern Africa Gas Task Force are: to provide a forum for public-private sector dialogue to support the development of the regional nascent gas sector by bringing gas demand and supply on stream at the same time. to stimulate broader regional demand and infrastructure investments. Unlock investment opportunities The NBF intends to leverage its role as the coordinator/secretariat of the SABF to mobilize the private sector through the establishment of Specialized Working Groups & Project Steering Committees

18 18 Southern Africa Regional Gas Task Force BACKGROUND The Southern Africa Regional Gas Task Force is a multistakeholder platform for public-private sector dialogue designed to enable and support the monetization of the natural gas resources within the SADC region by: bringing gas demand and supply on stream at the same time Stimulating broader regional demand and infrastructure investment Identifying and preparing a shortlist of viable natural gas based anchor projects as well as downstream linkages and densification opportunities. THE REGIONAL GAS SUPPLY AND DEMAND MARKET RATIONALE AND JUSTIFICATION Estimated 600 tcf natural gas reserves in Southern Africa. Shifting market dynamics implies stiff competition to attract investment and develop natural gas resources is expected with new entrants. Key facts: Most discoveries are in an isolated location Focused on export of LNG With the exception of South Africa opportunities for industrialization of domestic market is limited due to insufficient local demand Imperative to look beyond national borders into the SADC region, particularly and Africa, in general Hence, there is a need to: Identify potential demand and uses for the natural gas across the SADC region, Africa and beyond identify and scope opportunities for industrial development, including strategic locations for large-scale industrial projects based on supply/demand balance and markets Dimension the requisite infrastructure Policy and regulatory reforms Define a clear way forward

19 19 ONGOING INITIATIVES/PROJECTS ACTIVITY DBSA-ENH, MOZAMBIQUE STUDY SADC REGIONAL GAS MASTERPLAN OTHER INITIATVES Steering Committee SADC Governance Structures SAEP DBSA (funding) ENH (Client) SADC Secretariat IPP STRUCTURE NBF (PM) SAGTF Steering Committee World Bank Consultant (TBC) Gas to Power Working Group DFID Gas to Industry Working Group igas dti NBF ROLE Project Manager Implementing Agent / PM Co-ordination

20 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 20 PPP TRAINING

21 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 21 Public Private Partnerships The NEPAD Business Foundation (NBF) aims to build sustainable partnerships between governments, the private sector, and citizens. In February 2017, APMG International appointed as agent by the World Bank accredited the NBF to deliver the Certified Professional PPP courses. The NBF is the first African Accredited Training Organisation to receive accreditation to deliver the advanced CP3P Preparation Course released by the World Bank and APMG on 1 November NBF successfully delivered nine Private Public Partnership (PPP) courses and trained 170 infrastructure practitioners from the public and private sector Since its accreditation, the, representing Angola, Botswana, DRC Congo, Ireland, Kenya, Namibia, Niger, Nigeria, South Africa, South Korea, Tanzania, and Zambia. Course description The Foundation Course represents an intensive three-day workshop to provide practitioners with a general overview of PPPs. It will also introduce some basic features and characteristics of PPPs.

22 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 22 Upcoming Courses Duration Date City Theme May CP 3 P Foundation Course 3-day 7-9 Nairobi All sectors Duration Date City Theme February CP 3 P Foundation Course 4-day Nairobi WASH 5 June July CP3P Foundation Course 3-day Lusaka All sectors CP 3 P Preparation Course 5-day Johannesburg Advanced August CP3P Foundation Course 4-day Kigali All sectors September CP3P Foundation Course 4-day Dakar All sectors October CP 3 P Foundation Course 4-day 8-11 Johannesburg All sectors November CP 3 P Preparation Course 5-day 5-9 Johannesburg Advanced Plus bespoke, in-house or dedicated courses for specific interest groups (e.g. 3-4 day course / executive 1 day course) nil March CP 3 P Foundation Course 3-day Johannesburg All sectors April CP 3 P Foundation Course 4-day 9-11 Abidjan WASH 6 May CP 3 P Preparation Course 5-day Johannesburg Advanced June CP 3 P Foundation Course 4-day WASH 1 July CP 3 P Foundation Course 4-day WASH 2 August CP 3 P Foundation Course 3-day 5-7 Johannesburg All sectors September CP 3 P Foundation Course 4-day WASH 3 October CP 3 P Preparation Course 5-day Nairobi Advanced November CP 3 P Foundation Course 4-day WASH 4

23 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 23 Contents 1 NEPAD Business Foundation 2 NBF Infrastructure Programmes 3 Learnings

24 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 24 Lessons Learnt The evolution of our thinking: There is a shortage of finance for infrastructure projects? There is a shortage of well prepared (bankable) projects? There is a shortage of Project Preparation Funding? There is a shortage of strong project champions! = Project definition and prioritisation = De-risking projects to enable financing (project prep / implementation) How to accelerate multi-stakeholder infrastructure projects that lack an obvious sponsor: You don t need a perfect institutional framework to commence project planning Independent Project Sponsors can be utilised to get the ball rolling Project stakeholders must collectively agree on what needs to be done Provide Independent Project Sponsors with a mandate to raise Project Preparation funding Ensure ministerial support for cross-border projects Independent Project Sponsors can execute the project on the stakeholders behalf utilising the stakeholders for strategic guidance and ratification of decisions

25 INTRODUCTION TO THE NEPAD BUSINESS FOUNDATION AFRICA INFRASTRUCTURE DESK 25 Contacts Website: NEPADbusinessfoundation.org Lynette Chen CEO T: E: Kudzanayi Bangure Project Manager T: E: Peter Varndell Infrastructure Lead T: E: