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Early Project Preparation Facility

Instruments available to PIDA Stakeholders

The African Heads of State and Government have identified the shortcomings of early-stage project preparation as one of the critical bottlenecks for PIDA’s implementation (Dakar Financing Summit, 2014). The lack of technical and financial capacity leads to the omission of valid project concepts and the proliferation of immature proposals. Some critical aspects that have not always been considered include implementation capacity, regulatory framework, investment conditions, ownership of the assets, government guarantees and cross-border harmonisation. Around 25% of the over 400 projects selected for PIDA PAP1 have not reached the feasibility stage due to a lack of maturity. Since the inception of the First Phase of PIDA in 2012 and the Dakar Financing Summit (DFS) in 2014, which identified shortcomings for the smooth implementation of PIDA Projects.

The AUDA-NEPAD has developed several institutional instruments to accelerate the advancement of PIDA PAP projects. Some of the key instruments include:

Features

Project Preparation Instruments

The AUDA-NEPAD has developed several institutional instruments to accelerate the advancement of PIDA PAP projects. Some of the key instruments include:

Service Delivery Mechanism (SDM)

aims to address the lack of capacity and financial resources for early-stage project preparation at the national and regional level and give initial momentum to PIDA Projects.

SDM Expert Pool

The SDM has the required structure and resources to mobilise experts from multiple disciplines quickly and at a limited cost. This provides project sponsors with tailored support on different fronts and specialised advice on a case-by-case basis.

SDM Early-stage Project Evaluation Toolkit

Provides an objective and straightforward way to perform the project evaluation process quickly and simply (within 30 days).

PIDA Quality Label (PQL)

A quality recognition by the AUDA-NEPAD SDM that reflects a project’s adherence to international best practices in project preparation and structuring to bankability, thus increasing the projects’ likelihood of reaching financial close.

PIDA Job-creation Toolkit

Estimates the total job impact throughout the preparation, construction, and operation of the
project under consideration and thus providing a basis for developing jobs creation maximization strategies for PIDA Projects

NEPAD - Infrastructure Project Preparation Facility

it assists MS and RECs by providing grant resources and funding for project preparation, encouraging partnerships for implementation, and promoting an enabling environment for cross-border and regional infrastructure development.

Content

Risk mitigation and Investment mobilization instruments

Continental Business Network (CBN)

Aims at “crowd-in” financing and support for infrastructure projects by creating a platform for collaboration between the public and private sectors

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The 5% Agenda and Africa Infrastructure Guarantee Mechanism (AIGM)

Aims to mobilise Africa’s institutional infrastructure
investment community, including African pension and sovereign wealth fund capital, to meet current financing gaps and upscale risk mitigation for PIDA projects.

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Content

Political steering initiative

Presidential Infrastructure Champion Initiative

accelerates projects by bringing political visibility and mobilising the required resources led by Heads of State and high-level decision-makers

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Features

Information management and knowledge capitalisation instruments

African Infrastructure Database (AID)

To facilitate the collection, updates, analysis and reporting of infrastructure projects across the continent

Virtual PIDA Information Centre (VPIC)

To facilitate the sharing of updates, monitoring, communication and cooperation between PIDA stakeholders

Investor and Financial Institutions Database

provides precise knowledge on the main financial entities with a presence in Africa in the infrastructure sector

PIDA Artificial Intelligent Assistant - PIDA Assistant

Provides access to an AI enabled tool to facilitate the generation and mining of infrastructure data and knowledge from multiple sources

Pricing

Case Study: PIDA objectives and regional integration

PIDA is based on a shared vision of regional integration and a long-term agenda that will support the objectives of the Abuja Treaty
that established the African Union. It is further expected to achieve the following:

- Reducing transport costs and boosting intra-African trade with transport efficiency gains totalling approximately USD 172 billion in the African Regional Transport Integration Network (ARTIN) and potential for more significant savings as trade corridors open;

- Reducing energy costs and increasing access, enabling Africa to reap savings on electricity production costs of USD 30
billion annually through 2040. Power access is planned to rise from 39% in 2009 to nearly 70% in 2040, providing access to
an additional 800 million people;

- Increasing global broadband connectivity by increasing broadband penetration by 10%, which is expected to will increase GDP by 1% by strengthening connections between goods and markets and between people and jobs; and
- Ensuring water and food security in Africa which has the lowest water storage capacity and irrigated agriculture in the world, and about where half the continent faces water stress or water scarcity

Features

Insturments to support Infrastructure Development

The following diagram shows the PIDA implementation initiatives, instruments, continental African programmes, and external opportunities that have been accelerating the PIDA implementation process.

Slide 1

Infrastructure Project Preparation Facility

NEPAD-IPPF is a multi-donor Special Fund hosted by the AfDB, which supports African countries to prepare regional infrastructure projects in energy, transport, ICT and transboundary water.

Slide 2

Preparation of bankable regional infrastructure projects

Since its inception in 2005, NEPAD-IPPF has completed 55 grants to prepare regional infrastructure projects resulting to 30 projects which have reached financial closure, mobilizing downstream investment of US 24,1 billion, thus, responding directly to Africa’s integration and development efforts.

Slide 3

Responsive Project Preparation

NEPAD-IPPF was designed specifically to address one of the key constraints to infrastructure development in Africa, the lack of investment-ready projects. It aspires to be the premier project preparation facility on the continent.

NEPAD-IPPF is a multi-donor Special Fund hosted by the AfDB, which supports African countries to prepare regional infrastructure projects in energy, transport, ICT and transboundary water. It is currently supported by a number of Donors including Canada, Germany, UK, Spain, Norway and Denmark. Since its inception in 2005, NEPAD-IPPF has completed 55 grants to prepare regional infrastructure projects resulting to 30 projects which have reached financial closure, mobilizing downstream investment of US 24,1 billion, thus, responding directly to Africa’s integration and development efforts.

MISSION AND STRATEGIC OBJECTIVES

To increase the number of economically, environmentally, socially and gender responsive regional infrastructure projects prepared and implemented;
To increase funding for the preparation of bankable regional infrastructure projects;
To improve interaction among stakeholders in the preparation of regional infrastructure projects.

NEPAD identified infrastructure as one of the main drivers of economic growth and poverty reduction in Africa and understood that the present state of infrastructure, as well as the gap between Africa and most other regions of the world, constituted a serious handicap to the improvement of African economies’ productivity and competitiveness. It is in line with this imperative that, IPPF supports the development of regional and continental infrastructure with grants to African governments, Regional Economic Communities (RECs) and African infrastructure-related institutions to prepare high-quality viable transboundary projects in energy, transboundary water resources, transport and ICT.

Some of the ongoing projects include:

Implementation study for modernization of the trans-Maghreb rail (TRANSPORT)
Ruzizi IV (ENERGY)
ECREEE/Ecowas Feasibility study -Women in a changing energy value chain in west Africa (ENERGY)
North-South Corridor Roads Rehabilitation (TRANSPORT)
330KV Nigeria-Benin Interconnector Reinforcement Project (ENERGY)
Feasibility Studies For The Construction Of The Ubangi River Bridge, The Implementation Of The Missing Links In The Bangui-Kisangani-Bujumbura And Kisangani-Kampala Road Corridors, And For Facilitation Of Transport, Trade And Transit Along Both Corridors (TRANSPORT)
Route Multinationale KRIBI-CAMPO-BATA (TRANSPORT)
Central Africa Fibre Optic Backbone Project CAB Gabon (ICT)
Appui CEEAC Mise en Œuvre du PACOB-PPI (WATER)
Feasibility Studies For The Construction Of The Ubangi River Bridge, The Implementation Of The Missing Links In The Bangui-Kisangani-Bujumbura And Kisangani-Kampala Road Corridors, And For Facilitation Of Transport, Trade And Transit Along Both Corridors (TRANSPORT)
INGA-3 (ENERGY)
Multinational Orange-Sengu River Basin (WATER)
Feasibility Study Of The Construction And Concession Of Buba Mineral And Commercial Deep Sea Port In Guinea-Bissau (TRANSPORT)
Kampala-Juba-Addis Djibouti Road Corridor (TRANSPORT)
Multinational Uganda and Tanzania Roads project (TRANSPORT)
THE REHABILITATION OF SELECTED ROAD SECTION PHASE II: Detailed Architectural and Engineering Design of Manyovu/Mugina One -Stop Border Post (OSBP) & Preparation of Tender Documents (TRANSPORT)
Rehabilitation of Selected Road Sections of the Central Corridor in Tanzania, Rwanda and Burundi (TRANSPORT)
Lamu Port development: Transaction advisory services and technical assistance – Phase 1 (TRANSPORT)
Lake Tanganyika Transport Corridor (TRANSPORT)
Kolwezi-Solwezi Power Interconnection (ENERGY)
Feasibility Study Of The Construction Of A Deep Sea Port In The North-West Region Of The Republic Of Guinea (TRANSPORT)
Public Private Partnership (PPP) Advisory Services for the SONGWE River Basin Development Programme (SRBDP) (WATER)
Mozambique -Zambia 400KV Power interconnection Project (ENERGY)
Angololo Water Resources Development Project – Feasibility Studies, Detailed Design, Preparation Of Tender Documents, Esia And Rap (WATER)

For more information visit NEPAD IPPF webiste at http://nepadippf.org