JOINT AFRICA-EU STRATEGY - ANNUAL REFERENCE GROUP ON INFRASTRUCTURE MEETING- VENUE:

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AFRICAN UNION EUROPEAN UNION 2018-2020 JOINT AFRICA-EU STRATEGY - ANNUAL REFERENCE GROUP ON INFRASTRUCTURE MEETING- VENUE: AFRICAN UNION COMMISSION PREMISES ADDIS ABABA, ETHIOPIA DATE: 17-18 May 2018 1

Scene Setter "Mobilizing Investments for African structural sustainable transformation" is one of the guiding strategic priorities adopted at the 5 th African Union - European Union Summit held in Abidjan in November 2017. Notably, Energising Africa, Digitalising Africa, Interconnecting Africa and Investment scale-up remain the key challenges under this priority encompassing the mainstreaming of climate change, gender, youth and employment generation under an integrated multi-sectoral approach. The implications of above for the 2018-2020 Africa-EU infrastructure agenda across sectors (energy, water, transport, digitalisation) are imminent. It calls for strategic coordination between partners, discussions and agreement on best suited response strategies and actions related to PIDA implementation, the potential of digitalisation, investment promotion, climate change and the role the new European Investment Plan is expected to play for quality infrastructure investment and delivery. The "Reference Group on Infrastructure (RGI)" is further mandated to steer the strategic Infrastructure roadmap under the wider JAES framework. In its 6 th annual RGI meeting taking place in Addis Ababa, Ethiopia, from 17-18 May 2018 in Addis Ababa, Ethiopia, partners will address above issue. The RGI conclusions will be subsequently used to guide the 2018 AUC-EC College-to- College (C2C) Meeting taking place on 23 May 2018 in Brussels, Belgium. The Reference Group aims to bring together both African and European Partners: the European and African Union Commission, Members States of Africa and the EU, European and International Financing Institutions, African Regional Economic Communities and Sectoral/Thematic Institutions. The event is split into plenary and specific sectoral break-out groups in the energy, transport, water and ICT domains to derive the Post-Summit 2017 strategic actions for our joint infrastructure cooperation in domains of energy, transport, water and digitalisation as referred to above. The draft agenda and work programme is attached. 2

DRAFT AGENDA I. OPENING CEREMONY II. PROCEDURAL MATTERS III. WORKING SESSIONS 1. 5th African Union European Union Summit Conclusions on Infrastructure Cooperation The Way Forward 2. PIDA implementation within a challenging infrastructure context: State of Progress and Way Forward 3. Scaling-up Investment for Infrastructure (Energy, Transport, Water, Digitalisation) The Potential for Synergies between the European External Investment Plan (EIP) and PIDA 4. Enhancing the financial viability of Water projects in Africa through the application of a nexus approach 5. Mainstreaming Climate Change in Infrastructure Cooperation 6. Innovation Opportunities emerging for Rural Electrification from Digitalisation 7. Sectoral Break Out Groups (transport, energy, water and ICT) 8. Any Other Business 9. Preparation of Joint RGI Conclusions IV. ADOPTION OF Joint RGI conclusions V. CLOSURE OF THE MEETING 3

DRAFT WORK PROGRAMME DAY 1: THURSDAY, 17 MAY 2018 I OPENING CEREMONY 09:00-09:15 Introductory and Opening remarks by: AUC Directors of Infrastructure and Energy (DIE) and Rural Economy and Agriculture (DREA) European Commission, Director DG DEVCO C "Planet and Prosperity" II PROCEDURAL MATTERS 9:15-9:30 Adoption of the Agenda and Work Programme 09:30-10:00 COFFEE BREAK + GROUP PHOTO III WORKING SESSIONS - PLENARY 10:00-10:30 Session 1: 5 th African Union European Union Summit Conclusions on Infrastructure Cooperation The Way Forward Abstract: This session looks at the November 2017 Summit conclusions, the Abidjan Action Plan etc. through the lenses of Infrastructure (Energy, Transport, Water & Digitalisation). It highlights the repercussions for our future joint strategic cooperation agenda and the mandate of the Reference Group for Infrastructure (RGI). The adjusted Terms of Reference for the RGI on mandate, scope and structure will be presented. Presenters: AUC - 10 min (IED & DREA) EC - 10 min followed by discussions 4

10:30-11:30 Session 2: PIDA implementation within a challenging infrastructure environment State of Progress and Way Forward Abstract: This session puts the Programme for Infrastructure Development in Africa (PIDA) in the center. It builds on the conclusions of the December 2017 PIDA week and provides an update of the current PIDA Priority Action Plan (PIDA PAP) implementation, the outlook on the development of the PIDA PAP II (2020-2030) and other PIDA building blocks like the PIDA Continental Business Network, the Service Delivery Mechanism (SDM) and approaches for project preparation etc. It discusses the future cooperation agenda potential for enhanced PIDA delivery towards integrated, multi-sectoral infrastructure corridor approaches (including themes of gender-sensitivity, climate change, and employment promotion via the PIDA job creation toolkit). Presenter: AUC (Dr Haruna) and NEPAD - 30 min followed by discussions 11:30-12:30 Session 3: Scaling-up Investment for Infrastructure The Potential for Synergies between the European External Investment Plan (EIP) and PIDA 12:30-13:30 LUNCH BREAK Abstract: This session presents the potential of the new European External Investment Plan and its pillar structure (European Fund for Sustainable Development EFSD, Technical Assistance, Conducive Investment Climate Promotion). It focuses on "connecting the dots" between PIDA and the EIP under an integrated approach in terms of synergies, taking into account the USD 210 billion/annum of annual incremental investment needs for Africa to achieve the SDGs. Against the backdrop of quality infrastructure investment and delivery, this session shall eventually demonstrate the synergies between the three pillar structure of the EIP and PIDA. Secondly, potential investment projects for financial support under the DCI Pan-African instrument will be presented. Presenter: EC 45 min followed by discussion 13:30-14:30 Session 4: Enhancing the financial viability of water projects in Africa through the application of a nexus approach Abstract: Approaches to enhancing the financial viability of water projects through adopting a nexus approach are starting to emerge. These would include incorporating aspects such as energy, food, health and transport in traditional water projects or including water aspects in one of these other sectors. Assessing the financial viability of water, energy and food related infrastructure and projects is strongly correlated with risk management and mitigation. A project with a reduced risk profile has a higher chance of attracting financing from both public and private sources. Water, food and energy related infrastructure each present unique risk factors that need to be carefully understood and managed. When these risk factors are identified and mitigated systematically at project feasibility stage it is possible to enhance the financial viability as well as the development impact of projects in Africa. This session will build upon above. Presenter: EC 15 min AUC/AMCOW 30 min followed by discussion 5

14:30-15:15 Session 5: Mainstreaming Climate Change in Infrastructure Cooperation Abstract: Both the European Commission and African Union commission are committed to the full implementation of the Paris Agreement and Marrakech Action Plan adopted in COP22. This implies investments in climate change mitigation and adaption, disaster risk management and reduction. Energy efficiency and the development of renewable energy are important pillars for such endeavour. In light of above, the African Initiative on Renewable Energy (AREI), The Global Climate Change Alliance (GCCA+ - in particular its Intra-ACP component) and the strategic alliance through the AU-EU Energy Partnership are key engines to boost the climate change agenda. This session will highlight mainstreaming matters, bottlenecks and challenges in above context. Presenter: EC 15 min AUC 15 min followed by discussion 15:15-15:30 Session 6: Innovation Opportunities emerging for Rural Electrification from Digitalisation Presenter: AUC/EC 15 min 15:30-15:45 Introduction of Break-Out Groups (Energy, Transport, Water, Digitalisation) SECTORAL BREAK OUT GROUPS 15:45-17:30 Sectoral Break-Out Groups in domains of Energy, Transport, Water and Digitalisation Day I DAY 2: FRIDAY, 18 MAY 2018 Objective: to elaborate and strategise on specific sectoral matters. Format: parallel sectoral break-out groups with its individual agendas 09:00-11:15 Sectoral Break-Out Groups in domains of Energy, Transport, Water and Digitalisation Day II 11:15-11:30 COFFEE BREAK 11:30-12:30 Session 7: Outcome Presentation of Break-Out Groups on Energy, Transport, Water and Digitalisation Objective: presentation and feedback on sector group presentations Format: Plenary 12:30-13:00 Session 8: Any Other Business - Best practises on cooperation to be presented to the C2C 13:00-14:00 LUNCH BREAK 6

14:00-16:00 Preparation of draft RGI conclusions Objective: Preparation of draft RGI conclusions from AUC, EC Format: closed session IV Adoption of the RGI Conclusions 16:00-16:45 Adoption of draft RGI conclusions Objective: Plenary presentation of draft conclusions, discussion and approval from RGI participants Format: Plenary V CLOSURE 16:45-17h00 Closing remarks by AUC Directors of Infrastructure and Energy (DIE) and Rural Economy and Agriculture (DREA) European Commission, Director DG DEVCO C "Planet and Prosperity" 7