Service Delivery Mechanism (SDM)

To address the lack of capacity for early stage project preparation at the national and regional level, the NEPAD Agency and AUC, with back- ing from the GIZ, established the PIDA SDM in November 2014. It provides technical assis- tance for countries and agencies that originate PIDA projects to address early-stage project preparation issues and challenges.

The SDM provides:

  • Institutional advisory services: This support encompasses the institutional design of SPVs that oversees preparation, construction, operation, management and maintenance of projects.
  • Legal Advice: This support involves drafting and vetting legal instruments needed to develop an SPV.
  • Communications: This backing involves preparing project brochures, flyers, publications and communication strategies for projects.
  • Capacity building: This support involves workplace training, workshops and the drafting of practical manuals, lessons learnt and best practices.

The SDM’s mandate complements the NEPAD IPPF. It acts as a feeder into or supports the IPPF’s project pipeline. This is considering the refocusing of IPPF operations in its new stra- tegic business plan for mid- and late-stage pro- ject preparation activities.

The SDM’s existing project pipeline includes the LAPSSET Corridor. Here,  it has provided integrated master planning and project-man- agement advisory support and scoping studies to the TAH Missing Links project. It has also created an enabling environment for inland/ lake transportation for the CC and supported the SADC for project prioritisation and pre-fea- sibility for NSC.

PIDA Service Delivery Mechanism Outcomes

An array of activities has been undertaken under the SDM to scale up its operations since its unveiling, including:

  • The preparation of a draft version of proposed operational procedures for the SDM. It details the application, internal review and approval processes, as well as thresholds or limits of approval. External co-ordination or steering was also finalised and shared with stakeholders.
  • To complement SDM financial resources beyond commitments made by GIZ and NEPAD Agency, several fund-raising activities were initiated. Engagements are ongoing with the EU DEVCO to consider the SDM as part of the PanAf programme. Funding proposals have been shared with potential partners, such as the DFID, the OPIC and the SECO for further consideration. If successful, SDM resources are likely to increase to provide for additional advisory services for early-stage project preparation.
  • A draft application form for SDM resources, indicating project or programme eligibility, as well as initial information requirements was finalised.
  • Project pipeline development activities were undertaken to complement the fund-raising proposals. These include dialogue with the LAPSSET Corridor Authority, CC and the AUC-DIE for the TAH Missing Link project.

The following activities will be undertaken moving forward:

  • A MoU will be formally concluded between the NEPAD Agency SDM and the NEPAD IPPF.
  • Finalisation of SDM statutory rules of procedure, such as application, selection process, fundraising, procurement and management of consultancy, will be finalised to enhance financial support from partners.
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