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Regional Infrastructure in Sub -Saharan Africa: Challenges ...

Regional Infrastructure in Sub -Saharan africa : Challenges and opportunities Presentation Praful Patel Moderator Hal Wackman Commentators Maryvonne Plessis-Fraissard (Transport), Letitia Obeng (Water), Ananda Covindassamy and Eugene McCarthy (Energy). 1818 Society World Bank Room MC10-100. 20 February 2014. 1 | P a g e A f r i c a n Regional Infrastructure Regional Infrastructure in Sub -Saharan africa : Challenges and opportunities This note has been prepared as a background note for the 1818 Society presentation of 20 February 2014. on the above topic. The note includes, as an attachment, a paper written by Letitia Obeng and Praful Patel (Africa2050: Regional Infrastructure ) as part of a study on a 2050 vision for africa by the Centennial Group in 2013. Together, these two documents are intended to provide an overview on Regional Infrastructure in africa .

!!!2"|Page!!!!!African Regional Infrastructure!! Regional Infrastructure in Sub -Saharan Africa: Challenges and Opportunities This note has been prepared as a background note for the 1818 Society presentation of 20 February 2014

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Transcription of Regional Infrastructure in Sub -Saharan Africa: Challenges ...

1 Regional Infrastructure in Sub -Saharan africa : Challenges and opportunities Presentation Praful Patel Moderator Hal Wackman Commentators Maryvonne Plessis-Fraissard (Transport), Letitia Obeng (Water), Ananda Covindassamy and Eugene McCarthy (Energy). 1818 Society World Bank Room MC10-100. 20 February 2014. 1 | P a g e A f r i c a n Regional Infrastructure Regional Infrastructure in Sub -Saharan africa : Challenges and opportunities This note has been prepared as a background note for the 1818 Society presentation of 20 February 2014. on the above topic. The note includes, as an attachment, a paper written by Letitia Obeng and Praful Patel (Africa2050: Regional Infrastructure ) as part of a study on a 2050 vision for africa by the Centennial Group in 2013. Together, these two documents are intended to provide an overview on Regional Infrastructure in africa .

2 Background. africa is the least connected continent as clearly evident from the 2012 NASA satellite image of the earth at night on the cover page of this note. This is costing africa a cut in its GDP estimated to be between 2 to 3%. Progress on the ground on improving connectivity (via better Regional Infrastructure and integration) has been and continues to be grossly inadequate. All of the key stakeholders the African leaders, countries and donor agencies have grappled with this challenge, all with limited success. Reasons for the lack of progress are complex and varied: inadequate data, lack of programs and plans, weak political commitment, inadequate financing, weak governance environment, corruption, environmental issues etc. In the 2000s, two major positive developments gave fresh impetus to africa 's Infrastructure agenda the World Bank-sponsored AICD diagnostic study which filled the data gaps and produced an estimate of financing required for the continent's Infrastructure development ($93 billion per year), followed by the AFDB- sponsored Program for Infrastructure Development in africa (PIDA) study which identified priority projects for immediate implementation.

3 This note provides a brief overview of the PIDA study its origins, what it produced and the progress made since its approval by the AU Heads of States in January 2012. The overview is followed by some thoughts looking ahead. What is PIDA? Building on several past and ongoing initiatives, the AUC, NEPAD Secretariat and ADB. (PIDA Sponsors) jointly launched PIDA. The continent-wide Infrastructure program's objectives were to a). establish a strategic framework for the development of Regional and continental Infrastructure in four sectors (Energy, Transport, Information and Communication Technologies, and Transboundary Water Resources);. b) establish an Infrastructure development program over a time horizon up to 2040 (with a focus on the immediate term up to 2020); and c) prepare an implementation strategy and processes, including in particular a priority action plan.

4 Following a bidding process in early 2010, a French firm, SOFRECO was selected as the lead consultant to carry out the PIDA Study. The Study started in June 2010 was completed by the end of December 2011. It was endorsed by the African Heads of States in January 2012. What are the main outputs of PIDA? The key output of PIDA is what is called he Priority Action Plan (PAP), a list of 51 immediately actionable projects across four key Infrastructure sectors for implementation between 2012-2020. Unlike other such efforts, this one has true African ownership, as it was formulated with very close consultation from the outset with all key stakeholders -- sector ministers, the Regional Economic Communities (RECs), the power pools, the water basin organizations, and others. Approval by the AU Heads of States in January 2012 represents a sign of strong political commitment.

5 Besides identifying priority projects and associated basic technical and financial data (initial feasibility analyses) PIDA's other important outputs include several technical contributions such as approaches to raise financing, PPPs, institutional models etc. Priority Action Plan (PAP) for 2020-2040 Presented below is a brief overview of the 51 projects identified in the four sectors for the immediate term (2020). This is the heart of PIDA and provides a good point of departure for any forward-looking discussion of Regional Infrastructure in africa . 2 | P a g e A f r i c a n Regional Infrastructure Overall PIDA envisages investments of US$ 360 billion up to 2040 in the critical Infrastructure sectors of energy, transboundary water supply, transport and information and communications technology(ICT). This is reflected on the maps of africa (all from PIDA) in the summary below.

6 From that broader long-term program, PIDA identified a priority list of 51 investments totaling $ billion for implementation for the short-term period unto 2020. PIDA: Priority Action Program Energy Transport Water ICT Total # of Projects 15 24 9 3 51. Cost ($ b) 40 25 2 % of total cost 37 3 100. To illustrate what these projects focus on, the summary below presents details on the top 3-5. priority investments in each of the four sectors. Energy 15 projects including major hydroelectric projects, and power pools to meet the forecast increase in demand. One Regional petroleum products pipeline is also included. Total cost $40 billion Energy Sector Illustrative List of the top 5 projects in Advanced Stages of Preparation and/or Readiness for Funding and Implementation (source: PIDA). Project Description Cost Countries Region (US$.)

7 Millions). 1 Great 5,250 MW plant to supply domestic market and 8,000 Ethiopia, Nile River Eastern Millennium export electricity on EAPP market Basin Renaissance Dam 2 Uganda-Kenya 300 km long pipeline for a lower cost mode of 150 Uganda, Kenya Eastern Petroleum transport of petroleum products Products Pipeline 3 Sambagalou 128 MW of hydropower capacity,930 km from 300 Senegal, OMVG Western the mouth of the Gambia River to supply Senegal, Guinea, Guinea Bissau and Gambia 4 Batoka Hydroelectric plant with a capacity of 1,600 MW 2,800 Zambia/Zimbabwe Eastern to enable export of electricity Zambezi basin 5 Kaleta Hydropower generation of 117 MW 179 Guinea OMVG Western 3 | P a g e A f r i c a n Regional Infrastructure Transport 24 projects focused on connectivity, corridor modernization, ports and railways modernization.

8 Air transport modernization Total Cost $25 billion Transport Sector Illustrative List of Top 5 Projects in Advanced Stages of Preparation and/or Readiness for Funding and Implementation (source: PIDA). Project Description Cost (US$ m) Countries Region 1 Yamoussoukro Accelerate Yamoussoukro Decision 5 africa Continental Decision implementation by identifying countries that implementation are ready to fully implement it, and discussing and agreeing with both their governments and airlines to launch the voluntary club on a full membership basis 2 Abidjan-Lagos This program would modernize the most 290 Nigeria, Western Coastal heavily travelled ARTIN corridor in West africa Benin, Toga, Corridor (trade facilitation, OSBPs, capacity Ghana, C te enhancement and implementation of PPP) for d'Ivoire five countries: C te d'Ivoire, Ghana, Togo, Benin and Nigeria 3 North-South This program is designed to modernize the 2,325 DRC, Eastern Multimodal highest priority multimodal ARTIN corridor in Zambia, Corridor Southern africa on modern standards and Zimbabwe, facilitate travel of people and goods across the South borders between South africa , Botswana, africa , Zimbabwe, Zambia, Malawi and DRC Mozambique 4 Central This program would modernize the third 840 Tanzania, Eastern Corridor priority ARTIN corridor in East africa and Uganda, facilitate travel for people and goods across Rwanda, the borders between Burundi, Tanzania, Uganda, Rwanda, Burundi and DRC DRC.

9 5 Trans- This program is designed to improve travel for 75 Morocco to Northern Maghreb people and goods across the Maghreb Egypt Highway countries, which have had their trade and through travel limited by artificial barriers between Algeria, countries at the borders. This program would Tunisia and design and implement a smart corridor system Libya along the highway and install one-stop border posts 4 | P a g e A f r i c a n Regional Infrastructure Water Resources 9 Projects targeting multipurpose dams, capacity building of lake and river basin organizations and water transfer Total Cost $2 billion Transboundary Water Resources Sector Illustrative List of Top 3 Projects in Advanced Stages of Preparation and/or Ready for Funding and Implementation . (Source: PIDA). Project Description Cost Countries Region (US$m).

10 1 Nubian Sandstone Implementation of Regional strategy for the use of 5 Nubian Northern Aquifer System the aquifer system Sandstone Aquifer System 2 Fomi Hydropower station in Guinea with irrigation water 384 Niger River Western supply for Mali and regulation of the Niger river Basin (nine countries). 3 Lesotho HWP Phase II Water transfer program supplying water to 1,100 Orange- Southern water transfer Gauteng Province in South africa Senqu component River Basin 5 | P a g e A f r i c a n Regional Infrastructure ICT 3 Projects focusing on capacity building, land interconnection Infrastructure , and internet exchange points each country connected to two different submarine cables. Total Cost $ billion ICT Sector Illustrative List of Top 2 Projects in Advanced Stages of Preparation and/or Ready for Funding and Implementation.


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