THE EUAfrica Partnership on Infrastructure

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THE EU-Africa Partnership on Infrastructure
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• I- Policy framework
• II- EU-Africa Partnership on Infrastructure
• III- Financial instruments
• IV- Start-up phase 2007-08
• V- Some figures

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I- Policy framework
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The EU Consensus on Development

• The Joint Statement of the EU Council, European
  Parliament Commission A Vision of Development
• The First Part of the European Consensus on
  Development sets out common objectives and
  principles for development cooperation.
• It will guide Community and Member State
  development cooperation activities in all
  developing countries, in a spirit of
  complimentarity.
• The Second Part of the European Consensus on
  Development sets out the renewed European
  Community Development Policy.
• It identifies priorities which will be reflected
  in effective and coherent development cooperation
  programmes at the level of countries and regions.

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Common Objectives Principles

• Objectives
• The eradication of poverty in the context of
  sustainable development, including
• pursuit of the MDGs,
• supporting and aligning with partner countries
  strategies,
• improving coordination and complimentarity,
  harmonisation and alignment.
• Principles
• Ownership Partnership, political dialogue
  participation of civil society
• Reinforce aid effectiveness and predictability
  through harmonisation and alignment (Paris
  Declaration)

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Financing for Development Aid Effectiveness
(Reinforced by GAERC April 2006)

• More Aid
• EU timetable for Member States to achieve 0.7 of
  GNI by 2015
• intermediate target of 0.56 GNI by 2010
• At least half this increase in aid will be
  allocated to Africa
• Better Aid
• Commitment to the Paris Declaration on aid
  effectiveness
• Agreement to develop a two step approach towards
  joint multi-annual programming, consisting of a
  joint analysis of the country situation and,
  gradually, a joint response strategy,
• Recognise the need to develop a flexible format
  for joint financing arrangements
• Intention to further progress on donor
  complimentarity,

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EU Strategy for Africa

• The European Consensus recognises the pivotal
  role of infrastructure in development and the
  ECs comparative advantage
• The EU Strategy for Africa sets out the steps the
  European Union will take with Africa between now
  and 2015 to support African efforts to build a
  peaceful, democratic and prosperous future for
  all its peoples.
• It is a strategy of the whole of the EU for the
  whole of Africa.
• Its primary aims are
• the achievement of the Millennium Development
  Goals
• the promotion of sustainable development,
  security and good governance in Africa.
• Its underlying philosophy is African ownership
  and responsibility, including working through
  African institutions

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Infrastructure and the EU Strategy for Africa

• Regional infrastructure is identified by the EU
  Strategy for Africa as a means of interconnecting
  Africa for contributing to economic growth,
  competitive trade and regional integration
• EU-Africa Partnership on Infrastructure in the EU
  Council resolution of December 2005 to be
  complementary to the new Infrastructure
  Consortium for Africa.
• The Partnership is to include existing
  initiatives on transport and to facilitate
  peoples access to water sanitation, energy
  information technology.

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EU Consensus on Development
EU Strategy for Africa
Economic Environment
Peace Security
Governance
Economic Growth
Tackle the MDGs
Interconnect Africa
EU-Africa Partnership on Infrastructure
People Environment
CSPs RSPs
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EU Strategy for Africa
EU-Africa Partnership on Infrastructure
People Environment
CSPs RSPs
Transport
Access to basic services
ICT
Energy
Management of natural resources
Water
EU Water Initiative Water Facility
EU Energy Initiative Energy Facility
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Scope of the EU Strategy for AfricaCOM 489/F
10/2005
More aid - EU MS to achieve 0.7 GNP by 2015 -
0.56 by 2010 - at least 50 of this increase for
Africa - 10 billion/year by 2010
Better aid - Paris Declaration (march 05) -
ownership, alignment and harmonisation ?
Promote joint EU programming aligned with country
strategies ? Reinforce African ownership and
responsibility

• Recognises the role of infrastructure as a means
  of interconnecting Africa - stimulating growth,
  trade and regional integration and contributing
  to the MDGs

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Official Development Assistance
Official development aid, in of the Gross
National Income, in 2005
Target in 2010 for old member states 0,56
Target in 2010 for new member states 0,17
Figures for 2004
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Regular EU allocation of funds over the 8th-9th
EDF
Achieving NEPADs Infrastructure goals means
aditional expenditure of US 20 Billion per year
2015
Regular EU allocation
Expenditure average of 450Mper year
Country level 9th and 10th EDF period
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Scope of the EU Strategy for AfricaCOM 489/F
10/2005

• A necessity to raise additional funds
• EU Strategy for Africa introduce the EU-Africa
  Partnership on Infrastructure. The Partnership
  aims at attracting additional resources in
  support of regional and continental
  infrastructure and networks in Africa.
• It points at African Union and RECs as main
  interlocutors of the EU for the design and
  implementation of the Partnership

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Infrastructure policy framework-summary-

• The European Consensus - Europes vision of
  development
• Endorses infrastructures key role for economic
  growth, regional integration reaching the MDGs
• Calls for more aid additional 10bn/year for
  Africa by 2010
• Commits to more effective aid Paris Declaration
• Reinforces African ownership and promotes joint
  EU programming aligned with country strategies
• Highlights a sector-wide approach for
  sustainability of infrastructure investments and
  service delivery
• Triggered a new EU Strategy for Africa that
  created the EU-Africa Partnership on
  Infrastructure
• And backed by EU policy communications on
  transport, energy water the Infrastructure
  Partnership

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II- EU-Africa Partnership on Infrastructure
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The EU-Africa Partnership on Infrastructure

• European response to the AU-NEPAD Infrastructure
  Plan
• A framework for interconnecting Africa country
  with country, region with region Africa with
  the rest of the world
• A Partnership that works at three levels
  continental, regional and country using the
  principle of subsidiarity
• Financing Infrastructure - transport, energy,
  water ICT and support for regulatory
  frameworks that facilitate trade and services
• Coordination with other international initiatives
  paramount, e.g. Infrastructure Consortium for
  Africa WB Africa Action Plan. EC membership of
  ICA will facilitate coordination.

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Objectives and strategy

• Objectives
• Stimulate sustainable economic growth
• Promoting competitive trade
• Fostering regional integration
• Contributing effectively to poverty reduction and
  Africas MDGs
• Strategy regional country complementarity
• Support programmes that facilitate
  interconnectivity at continental regional level
• Support programmes coherent with national poverty
  reduction strategies and infrastructure sector
  strategies

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Key Partners Roles

• Africa Union Commission Sectoral Partners
• Political leadership of AU-side of Partnership,
  AMCOW, FEMA, etc
• African Regional Institutions NEPAD AfDB, RECs
• Technical leadership of AU-side of Partnership
• African Member Countries
• Owners of Partnership projects key to
  sustainability
• African Development Bank, DBSA, DFIs
• Potential project promoters and co-financiers

• European Commission, inc. Delegations
• Leadership of EU-side of Partnership,
• coordinate with MS, ICA, AfDB
• securing finance 10th EDF
• European Member States
• Financiers of NIPs/RIPs and co-financiers of TF
• European Investment Bank EU MS Development
  Banks, EDFIs
• Promoters and co-financiers of projects
• Administration of Trust Fund (EIB)

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How it will work

• AU-NEPAD with its continental-wide political
  mandate will facilitate dialogue at REC level and
  between RECs
• AU-NEPAD ensures continental ownership at all
  levels providing policy guidance ensuring the
  integrity of the continental vision
• RECs ensure regional ownership by reaching
  consensus on regional priorities with their
  Member countries, facilitating implementation of
  regional projects, regional international
  protocols etc. linked to Economic Partnership
  Agreements (EPAs)
• African country ownership - project owners -
  align national regional priorities, enforce
  regional international agreements key to
  sustainability

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Implementing a Sustainable Partnership

• EC evaluation experience identifies 3 key factors
  for the delivery of sustainable infrastructure
  networks and services
• beneficiary ownership
• timely maintenance
• sector sustainability
• Partnership implementation will
• seek political commitment for good sectoral
  governance
• support sector-wide approaches
• build coherence between country, regional and
  continental activities of the Partnership
• promote private sector participation, PPPs where
  appropriate
• support infrastructure that is safe, appropriate,
  responds to needs of men women, respects
  environmental and social assessments

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What it will finance

• All Infrastructure sectors
• Planning prioritisation of investments,
  capacity building, harmonisation implementation
  of international regional agreements,
  regulatory reform....
• At Continental and Regional level
• Continental and regional priorities AU/NEPAD
  i-STAP
• Facilitation programmes aimed at improving the
  free movement of goods, services and people along
  regional and continental corridors
• Priority to Trans-African corridors and regional
  networks, transboundary water, regional
  electrification
• At National Level
• Support for national sector policies and measures
  that increase the sustainability of the
  Partnership operations at regional and
  continental level.

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EASSy / global connectivity
EASSy (15 countries)
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Inga Dam(DRC)
Inga I 1972 capacité de 351 MW Inga II 1982
capacité de 1 424 MW (fonctionnement à 20 de
capacité - réhabilitation 450 M) Projet
(pouvant bénéficier du FFI) ? Développement
dInga III capacité projetée de 3500 MW ( 9 Mds
avec la construction d'une ligne électrique
vers lOuganda et lAfrique Australe (WESTCOR
Angola, Namibie, Botswana et l'Afrique du Sud).
- Inscrit au NEPAD, en combinaison avec WESTCOR
Corridor Nord
Corridor Occidental
Grand Inga Développement très long terme 39000
MW 52 turbines 50 Mds
Corridor dAfrique Austral  WESTCOR 
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Partnership working with National Programmes
Regional Economic Infrastructure
Transport
Energy
Water Sanitation
ICT
RECS, Sectoral and Continental bodies Strengtheni
ng regional institutional capacity Regional
sector policies regulatory frameworks
National sector policies regulatory frameworks
PRS-driven National Programs
Adapted from the GWP comb for IWRM
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Partnership framework of actions in the
fieldworks of Transport, Energy, Water and ICT

• In line with the AU-NEPAD i-STAP, the partnership
  operation will concern two categories
• FACILITATION and STUDIES, PHYSICAL INVESTMENT

planning investments, capacity building (RECs,
AU), infrastructure activities supporting EPAs,
regional regulatory reforms to encourage private
investments, measures for improving air and
maritime safety/security, free-safe-secure
movement of transit traffic along corridors,
regional/continental corridors missing links,
increase the efficiency of national legislative
and regulatory framework, take into account
transafrican corridors in NIP/RIP
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Transboundary basin managment Water managment
monitoring
Water
Electricity Interconnection Power Generation
Energy
Transafricain road corridors Maritime ports,
airports
ICT
Transport
Broadband infrastructures e-Government -
telemedecine
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III- Financial instruments -The Trust Fund
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Financial instruments

• National and Regional Indicative Programmes
  (EDF10)
• Increased focus on facilitation linked to trade
  and EPAs, support to regional networks
• Alignment with EU MS bilateral programmes through
  joint multi-annual programming
• Intra-ACP resources (EDF10)
• Grant-to-grant financing (capacity building,
  regional initiatives and facilitation programmes
  support to African roads and water sectors)
• Start-up grant to leverage additional financing
  from others, for networks or part thereof that
  qualify as Trans-African
• ACP-EU Water Facility Energy Facility (EDF9)
• EC has funding available through the Water
  Facility to kick-start water energy activities
  within the Infrastructure Partnership before the
  start of EDF10

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What are its financial instruments

• EU-Infrastructure Trust Fund for Africa (EDF9
  EDF10)
• open to all EU MS
• True co-financing EIB, EDFIs, AfDB
• Interest rate subsidies
• Risk guarantee mechanisms
• Grants for project preparation, capacity building
• Trust Fund Governance
• Steering Committee includes AU-NEPAD, AfDB, EC,
  EIB and contributing donors with ACP Secretariat
  as Observer
• Executive Management Committee for project
  appraisal
• Partnership Secretariat for support liaison
• Project Financiers Group who propose projects to
  the Executive Committee

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The EU-Africa Trust Fund
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EU-Africa Trust-Fund co-financing EIB, EDFI,
AfDB
FED ressources
RIP/NIP
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2
Intra ACP
? Interest rate subsidies ? Risk guarantee ?
Grants for project ? Capacity building
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Fonds Fiduciaire du Partenariat
EU-Afrique pour les Infrastructures
Mécanisme de Financement
Fonds Fiduciaire EU-Afrique Destiné à attirer
prêts et subventions
PIR/PIN FED
Intra ACP FED
SUBVENTIONS
BEI, IFD, BAD
PRETS
EU Etats Membres Organismes Bilateraux
PRETS
SUBVENTIONS
Utilisation des subventions Bonification de taux
dintérêt, Subventions direct à des volets de
projets, Prime dassurance Etudes préliminaires
(APS)
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Infrastructure Trust Fund

• Governance framework

• ? STEERING COMMITTEE SC
• strategic policy guidance, coherence
• with AU-NEPAD, EU activities, ICA ()
• EC, Membres States, EIB, AfDB, AU-NEPAD and ACP
  secretariat
• ? EXECUTIVE COMMITTEE EC
• approves TF allocation to projects
• - EC and contributing donors

? PROJECT FINANCIER GROUP Informal group
made up of project Financiers can submit
projects to the SC, EIB, AfD,KfW, COFIDES, DFI
or DI of donors
A SECRETARIAT supports the operation of the
governance bodies, liaison with african partners
and donors (annual reports )
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EU Africa Infrastructure Trust Fund

• AU, NEPAD
• RECs
• ACP Secretariat
• Commission
• Donor MS

PARTNERSHIP STEERING COMMITTEE Responsible for
- strategy - coherence with other initiatives

• Commission
• Donor MS
• Observers fromnon contributing MS

• TRUST FUND EXECUTIVE COMMITTEE
• Overall responsibility for the
• Trust Fund
• - decides eligibility of application
• monitors performance

Project Financiers Group EIB, PFs of donor
MS Apply for interest rate subsidy, grants and/or
TA
TRUST FUND
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Donors Project Promoter 2 key actors of the
Trust Fund

•  Donor 
• The  Donor  is a EU Member State making a
  financial contribution to the Trust Fund
• The  Donor  is member of the SC and the EC and
  has voting powers
•  Project Promoter  presents the project to the
  EC
• Is Project Promoter EIB, Donors DFI, AfDB
• The PP present the project and its financial plan
  
• The PP isnt member of SC, EC but member of the
  Project Financer group (excepted EIB)

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The role of Delegations

• Technical expertise, access to information and
  actors, knowledge of local conditions
• Key in assessing coherence of proposals
• Regional natural interlocutors of RECs
• Ethiopia link with AU shared responsibility
  for implementation
• Influence
• Not a role of promotors (reserved for Development
  Banks)
• RECs, national authorities and domestic business
  leaders
• Executive Committee (AIDCO/C)
• Directly with Project Financiers Group members or
  TF Secretariat

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Current funding of the Trust fund

• EDF9 and nine EU countries have made
  contributions to the Fund amounting to 87
  million in grant
• EIB committed to make available 260 million in
  loans.
• COFIDES, KfW,AfD, FMO, and other EDFIs to
  announce shortly their commitments

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What will finance the Trust fund?

• Interest rate subsidies provision of a lump-sum
  amount to a participating lender to enable such
  lender to make long-term loan finance at reduced
  rates

• Grants direct grants for project components
  with substantial demonstrable social or
  environmental benefits studies

• Insurance premia initial-stage funding premia to
  ensure the launch of infrastructure projects.

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IV- Start-up phase 2007-08
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2007 a year of implementation

• I- 10M start up activities
• 0.65M Governance and implementation support
  technical assistance for the implementation of
  the start-up activities
• 0.5M Support to the Infrastructure Country
  Diagnostic (study managed by the WB coverage
  extension on an existing study)
• NEPAD Flagship projects/studies (Transport)
• 0.75M Yamoussoukro decision (liberalisation of
  air transport market) implementation evaluation
• 2M Mayor bridge maintenance and development
  priority sections/mission road links and railway
  interconnection
• 2,8M 3 mayor missing links of the transafrican
  road corridors
• 0.5M interconnected rail network study
• NEPAD Flagship projects/studies (Energy)
• 0.5M Co-finnancing study for the INGA Hydro
  power (DRC) development
• NEPAD Flagship projects/studies (TIC)
• Feasibility study for an East Africa Submarine
  cable system (EASSy) project (NEPAD) support of
  the launching of the task force on telemedicine

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2007 a year of implementation

• II- 10M Energy Facility from EUEI supporting
  capacity building of powerpools
• III- 10M Water Facility from EUWI supporting
  capacity building of transboundary river basins
• IV- 2M for AUC capacity building in the
  Directorate of Infrastructure and energy
• V- Trust fund (60M Intra ACP 9th EDF 27M EU
  MS contributions)

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Thank you