NEPAD Infrastructure Project Preparation Facility

Since its establishment in 2005 in support of the NEPAD Africa Action Plan, the NEPAD IPPF, which is a special fund administered by the AfDB, has:

  • Mobilised US$91.67 million.
  • Committed US$79.33 million.
  • Provided 66 project grants, of which 35 have been completed.

This has resulted in US$7.78 billion of investment financing. This demonstrates high leverage, in terms of downstream financing for well-prepared high-quality bankable infrastructure projects.

NEPAD-IPPF Grant funding supports preparation of:

  • pre-feasibility and full feasibility studies,
  • ESIA studies,
  • technical or engineering designs,
  • tender and bidding documents,
  • transaction-advisory support, and
  • proposals for financing by the public and private sectors, as well as via PPPs.

NEPAD-IPPF grant funding also supports development of partnerships for effective project implementation and targeted technical assistance and capacity building support to accelerate the pace of project delivery.

The financial contributions to the NEPAD-IPPF Special Fund have been sourced from core donors, namely Canada, Germany, UK, Spain, Denmark and Norway. Meanwhile, the AfDB has funded the capital budget of the NEPAD-IPPF and the USAID co-financed specific projects.

As regional integration deepens, there is increased impetus for infra- structure connectivity and therefore, the demand for project preparation support has increased. In consultation with the AUC, NEPAD Agency, RECs, PPs, RBOs and Corridor Agencies, the NEPAD-IPPF has unbun- dled the PIDA PAP into a pipeline of 110 regional projects. These cover energy, transport, trans-boundary water and ICT with preparation costs of about  US$430 million during 2016.

Within the framework of the new NEPAD-IPPF strategic business plan for 2016  to 2020, the NEPAD-IPPF wants to mobilise  US$250 million to prepare between 60 and 80 projects, or between 12 to 16 regional infrastructure projects a year. The balance of the funding is expected to be sourced from co-financing  from other  project-preparation facilities that operate throughout the continent.

To mobilise the required US$250 million, the NEPAD-IPPF has embarked on a fourfold strategy, namely:

  • seeking  re-financing from existing donors,
  • reaching out to new donors,
  • finding direct financial contributions from African countries who are the ultimate beneficiaries, and
  • enhancing co-financing with other project-preparation facilities.

The support of the AUC, NEPAD Agency and African countries is essential for ensuring that adequate resources are mobilised for project preparation to accelerate the pace  of financing and, therefore, the implementation of projects in the PIDA PAP.

In 2016, the NEPAD Agency and IPPF signed a partnership Aide Memoir to strengthen pro- ject preparation, financing  and  resource mo- bilisation in Johannesburg, South Africa. They agreed on the modalities for joint resource mo- bilisation in support for project preparation and development. Consensus was also reached on the need  to foster  co-ordination by efficient in- formation sharing, project pipelines, missions and project documents. Both will adopt a holis- tic and co-ordinated approach between various participants and instruments to promote the efficient use of resources in the delivery of the joint programmes.

Subscribe to PIDA e-Newsletter

Subscribe to PIDA e-Newsletter

Join our mailing list to receive the latest news and updates.

You have Successfully Subscribed!

Share This