Infrastructure Consortium for Africa nd 2 Meeting Hosted

Agenda - morning 8: 30 – 9: 00 xvcxvxvx 9: 00 – 9: 45

Agenda - afternoon 13: 30 – 14: 15 xvcxvxvx 14: 15 – 15: 30

Agenda June 2006 1 Welcome and Outline of the Day 2 Commitment to identify

Opening Message H. E. Alpha Oumar Konaré Chairman, African Union Commission June 2006 -4

Secretariat: staffing Secondments: Acting coordinator Andrian Rakotobe (Af. DB) Experts Yuka Hananogi - Japan

ICA Members’ Progress: October 05 – June 06 NEPAD-level Projects Country-level Projects NEPAD/STAP 11

NEPAD level, Oct 05 – Jun 06: USD 764. 3 Mln (projects) Country Project

NEPAD level, Oct 05 – June 06: USD 7. 1 Mln (studies) Country S

Country level, Oct 05 – June 06: USD 3. 5 Bln Country Note: all

Country level, Oct 05 – June 06: USD 3. 5 Bln Country 36. Mozamb.

Outcome of Project Questionnaire exercise on shortlisted 12 programs identified on April 11 th

Outcome of Project Questionnaire on shortlisted 12 programs identified on April 11 th 2006,

Working with other Development Partners India’s Support to Infrastructure in Africa Discussion June 2006

Infrastructure effectiveness Framing the issue • Private sector Stakeholder African institutions and countries Donors

Today’s main focus • Private sector Stakeholder African institutions and countries Donors Limited contribution

Project Preparation –Tunnel of Funds Proposed way forward SHORT TERM : Launching of pilot

Project Preparation – Options for Change Key messages Option 1 Collaboration of existing facilities

Innovative Financing: more and better funding for development International community has been looking for

Innovative Financing cont. France - Taxation, recently established an international solidarity contribution on airline

Agenda - tomorrow 9: 00 – 09: 45 xvcxvxvx 9: 45 – 10: 45

Slides: 33

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Infrastructure Consortium for Africa nd 2 Meeting Hosted by the African Union Addis Ababa, Ethiopia June 19 & 20 2006

Agenda - morning 8: 30 – 9: 00 xvcxvxvx 9: 00 – 9: 45 - 10: 15 – 11: 15 11. 15 – 11. 30 11: 30 – 11: 45 – 12: 30 – 13: 30 June 2006 Registration – tea and coffee Session 1 Welcome and outline of the day Opening message Update since October 6 -Secretariat staffing: Secretariat -Website: Secretariat -Project preparation guide: WB Session 2 Commitment to “identify and secure funding for 5 STAP projects” Presentations -Overview of Consortium progress -Outcome of project questionnaire Discussion: on which projects will we work closer together to help accelerate implementation? Tea and coffee Session 3 Working with other development partners Presentation: - Indian support to infrastructure: India (15 min) Discussion: how can we work closer together? Lunch -1 -

Agenda - afternoon 13: 30 – 14: 15 xvcxvxvx 14: 15 – 15: 30 – 16: 00 – 17: 00 – 18: 15 – 18: 30 June 2006 18: 30 Session 4 Improving infrastructure effectiveness 1 Presentations -improving infrastructure effectiveness: Secretariat -roles and responsibilities vs. STAP implementation: Af. DB -co-ordination on project selection: Japan Discussion -roles and responsibilities and the STAP – next steps -co-ordination on project selection – next steps Tea and coffee Session 5 Improving infrastructure effectiveness 2 Presentations -project preparation options paper: Secretariat -innovative financing instruments: Secretariat + IFFm -EU Infrastructure Trust Fund: EC Discussion -project preparation - next steps -innovative financing instruments – next steps Session 6 Adoption of work plan Discussion: -decisions taken – adoption of “to do” list for each participant -adoption of work programme and budget of ICA Secretariat -agreement on financing sources for ICA Secretariat budget Session 7 -AOB, Overview of tomorrow’s energy discussion DRINKS RECEPTION -2 -

Agenda June 2006 1 Welcome and Outline of the Day 2 Commitment to identify and secure funding for 5 STAP projects 3 Working with other development partners 4 Improving infrastructure effectiveness – I 5 Improving infrastructure effectiveness – II 6 Adoption of work plan 7 Overview of tomorrow’s energy session / AOB -3 -

Opening Message H. E. Alpha Oumar Konaré Chairman, African Union Commission June 2006 -4 -

Secretariat: staffing Secondments: Acting coordinator Andrian Rakotobe (Af. DB) Experts Yuka Hananogi - Japan (JICA) Andrew Roberts - UK (DFID) Guillaume Grosso – Af. DB Further secondments offered from: EC Russia Administrative support Houeyda Mamia (Af. DB) Appointment of full-time co-ordinator - status June 2006 -5 -

Website June 2006 -6 -

ICA Members’ Progress: October 05 – June 06 NEPAD-level Projects Country-level Projects NEPAD/STAP 11 projects funded 60 projects funded Worth a total of USD 764. 3 M USD 3. 447 Bln 12 studies funded Worth a total of USD 7. 1 M Contributors: Af. DB, EC, WB, Italy, Japan, USA, UK Af. DB, EC, WB, Italy, Japan Total = $4. 24 bn In 2004 donors spend approximately $4 bn on infrastructure in Africa June 2006 -8 -

NEPAD level, Oct 05 – Jun 06: USD 764. 3 Mln (projects) Country Project 1. EAC East Africa Trade & Transport Facilitation 2. EAC East Africa Trade and TR 3. ECOWAS Mali-Senegal South Corridor Rd constr. 4. ECOWAS Kita-Saraya-Kedougou Rd (Mali–Senegal) 5. ECOWAS West Africa Air Transport & Security 6. ECOWAS Senegal River Basin Multi-Purp. Water R. 7. ECOWAS WAPP – Coastal Transmission Backbone 8. ECOWAS WAPP – OMVS Felou Hydro Power Plant 9. ECOWAS Transport Facilities: Indicative Regional 10. SADC Caia Bridge over Zambezi River 11. SADC Shared Watercourses Project June 2006 USDm 199 60 9. 3 98 34 110 60 75 80 25 14 Source WB WB Japan Af. DB WB WB EC Ita/Swe/EC Af. DB -9 -

NEPAD level, Oct 05 – June 06: USD 7. 1 Mln (studies) Country S 1. EAC t 2. EAC u 3. EAC d 4. EAC i 5. ECOWAS e 6. ECOWAS s 7. ECOWAS 8. SADC 9. SADC 10. SADC 11. SADC 12. SADC Project EATTFP-OSBP Feasibility Study Mtwara Corridor Development Study Mombassa Port Rehabilitation Bridges along South Corridor D/Design OMVG Energy – Project Preparation Ghana Ports Up-date of F/S Nacala Corridor Feasibility Study Nacala Corridor Pre Feasibility Study Nacala free Trade Zone Study Mozambique 4 provinces Rd pre F/S Rehabilitation of Angola Ports F/S USDm Source 0. 01 0. 03 0. 14 nc 0. 6 0. 5 0. 07 0. 3 2. 5 nc nc 3 UK Japan Af. DB Japan USA Japan Note: using 1 EUR = 1. 25 USD; 1 UA = 1. 49 USD June 2006 -10 -

Country level, Oct 05 – June 06: USD 3. 5 Bln Country Note: all amounts in USD, using 1 EUR = 1. 25 USD; 1 UA = 1. 49 USD June 2006 Project 1. Benin Sanitation 2. Benin Upgrading of Banikoara-Kandi Rd 3. Burundi Rehab. of Hydro Infrastructure 4. Burundi Public Works and Employment Creation 5. Cameroon Yaoundé Sanitation Project 6. Cameroon Rd Programme 7. Central Africa Rehabilitation of Sanitation System 8. Chad Rural WS&S 9. Chad Support to Transport Sector Policy 10. Comoros Infrastructure Rehabilitation 11. Congo Reconstruction and monitoring of National Rd 12. DRC Nsele-Lufimi & Kwango-Kenge Road Rhb. 13. DRC Emergency Multi Sectoral Rhb. & Recov. 14. Egypt Integrated Solar/Power Plant 15. Ethiopia Rural WS&S 16. Ethiopia Road Sector Development 17. Ethiopia Accelerated Electricity Access – Rural 18. Gabon Local Infrastructure Development 19. Gambia Rural Water Supply Sector 20. Ghana WS&S Programme (Study) 21. Ghana Accra Sewage Improvement 22. Ghana Rehabilitation of Kumashi Teciman Rd 23. Ghana Feeder Rds Improvement 24. Ghana Small Town Water and Sanitation 25. Guinea Electricity Sector Efficiency 26. G-Bissau Multi Sector Infrastructure Rhb. 27. Lesotho Water Sanitation Rehabilitation 28. Liberia Emergency Infrastructure Project 29. Madagas. Rural WS&S 30. Malawi Rural Infrastructure Services 31. Mauritania Construction of Rd Kaedi-Gouraye 32. Morocco Motorway Construction 32. Morocco Sewage System 34. Morocco Rural Electrification 3 35. Mozamb. Nhacangara Dam over Ponwe River USDm 25 29 18 31 38 101 9. 4 19 105 3. 9 59 78 125 106 65 87 134 25 8 1 69 45 34 29 7 15 44 25 76 40 83 177 42 52 49 Source EC EC Af. DB WB Af. DB EC EC EC Af. DB WB Japan Af. DB WB WB WB EC Af. DB EC EC EC WB WB EC WB Af. DB WB EC Japan Italy -11 -

Country level, Oct 05 – June 06: USD 3. 5 Bln Country 36. Mozamb. 37. Mozamb 38. Mozamb 39. Niger 40. Niger 41. Niger 42. Rwanda 43. Senegal 44. Senegal 45. Senegal 46. Senegal 47. S-Leone 48. S-Leone 49. Sudan 50. Tanzania 51. Tanzania 52. Tanzania 53. Tanzania 54. Tunisia 55. Uganda 56. Uganda 57. Uganda 58. Uganda 59. ACP EC 60. ACP EC June 2006 Project Maputo Drainage System Limpopo Railway Line Beira Sanittion Project Tibiri-Dakoro & Madaoua-Tahoua Roads Rd maintenance Air Region Urban Infrastructure Development AES Sonel Electricity Project Participatory Local Development Road Rehabilitation Support to Urban Development Matotoka-Sefadu Road (Study) Transport Infrastructure Development Emergency Multi Sectoral Rhb. & Recov. Local Government Support Kilwa Rd Construction Rehabilitation of Mandela Rd Rehabilitation and upgrading of Rd Rural Water Supply Rural WS&S Northern Rehabilitation Reconstruction of Priority Rd Strengthening of the Northern Rd Energy Facility Water Facility USDm Source 21 7. 5 Italy EC 41 33 EC Af. DB 86 14 EC EC 20 75 WB Af. DB 50 77 WB EC 20 3 EC Af. DB 44 50 WB WB 98 11 WB Japan 40 37 EC EC 54 60 Japan Af. DB 25 115 EC EC 24 275 EC EC 313 EC -12 -

Outcome of Project Questionnaire exercise on shortlisted 12 programs identified on April 11 th 2006, conducted by the ICA Secretariat Information received does not paint complete picture to complete the programs, but helped identify key upcoming projects for each program. For these, we have distinguished between two situations: Projects that already have full funding commitments Projects that still have funding gaps These represent a total of 10 projects, for a total gap of USD 947 M Can we fill some of these gaps? June 2006 -13 -

Outcome of Project Questionnaire on shortlisted 12 programs identified on April 11 th 2006, Main funding gaps identified: EAPP-East Africa Power Market APL US$ 115 M WAPP-APL 3 Phase 1 of Inter Zonal Transmission Hub US $45 M WAPP-Inter-Zonal Transmission Hub; Ghana System Reinforcement US$ 75 M WAPP-Inter-Zonal Transmission Hub; Ghana/Burkina Faso/Mali Link US$ 55 M WAPP- Inter-Zonal Transmission Hub; Cote d’lvoire/Mali Link US$ 75 M WAPP-OMVG Power System US$ 300 M WAPP-Nigeria-Niger Interconnection System US$ 70 M Inga-Regional and Domestic Power Markets Development US$ 110 M CAR/CHAD/Cameroon Corridor-Duala-Banjul and Duala-Ndjamena Road Construction US$ 42 M EARNP-NCTIP Road Construction US$ 60 M Which way forward? Who can commit, to what project? June 2006 -14 -

Working with other Development Partners India’s Support to Infrastructure in Africa Discussion June 2006 -16 -

Infrastructure effectiveness Framing the issue • Private sector Stakeholder African institutions and countries Donors Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of • Ability to scope efforts • Lack of lawyers / • Project ownership • Power / delegation project structuring • Competing of authority issue capacities projects • Weak strategies vs reform adoption • Focus on projects, not on enabling framework • Limited impact Overall Framework • Multiple PPFs & funds • Low awareness • Gaps in cycle Project Preparation • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Project Finance & Implementation Area of intervention June 2006 -18 -

Today’s main focus • Private sector Stakeholder African institutions and countries Donors Limited contribution to business climate improvement • Low / reduced activity in project preparation • Lack of project financiers • Underdeveloped local financial markets • Shortage of LT money • Bottlenecks • Duplication of • Ability to scope efforts • Lack of lawyers / • Project ownership • Power / delegation project structuring • Competing of authority issue capacities projects • Weak strategies vs reform adoption • Focus on projects, not on enabling framework • Limited impact Overall Framework • Low awareness • Multiple PPFs & funds • Gaps in cycle Project Preparation • Protection of pipelines • High transaction costs • Need for other financial products • Fast-track vs. risk Project Finance & Implementation Area of intervention June 2006 -22 -

Project Preparation –Tunnel of Funds Proposed way forward SHORT TERM : Launching of pilot projects under the Tunnel scheme MEDIUM TERM : Validation of concept, generalization State of play on potential Pilot Projects Project Status of discussion Next steps EAC – Regional Telecom Carrier Request under preparation but delays in submission 1) Finalization of the request by end june SADC – Southern african Power pool (SAPP) Submitted a list of priority activities to be funded 1) Finalization of the request by mid-july Request to be prepared 2) Contact with Partner Facility Managers for work-sharing IGAD – Addis Ababa Dry Port No answer - June 2006 2) Contact with Partner Facility Managers for work-sharing -24 -

Project Preparation – Options for Change Key messages Option 1 Collaboration of existing facilities Cannot be business as usual for flow of projects for financial closure to increase “One-stop-shop” Resources for project preparation is a shared responsibility between countries and donors Option 3 More money is needed, which will be more at risk and not always produce visible outputs Option 2 Performance partnership Output-based solution offers many potential advantages June 2006 -25 -

Innovative Financing: more and better funding for development International community has been looking for new tools to ensure sustained financing for development and the fight against poverty. Now a consensus on the usefulness of such financing. 79 countries endorsed the Declaration on Innovative Sources of Financing for Development adopted on September 14, 2005 at the United Nations. 1. Taxation - environmental, arms, currency transactions, multinational profit, global lottery 2. Bonds/pension funds – raise money on capital markets / invest June 2006 -26 -

Innovative Financing cont. France - Taxation, recently established an international solidarity contribution on airline tickets, effective from July 1, with part of proceeds going to the International Drug Purchase Facility. African Development Bank (Annual Meetings, 2006) - Taxation, mobilise funds from Oil Exporting countries. Countries should put at least 5% of excess revenues arising from Oil Price windfall in to a special fund to support regional infrastructure. - Bonds/pensions, Af. DB should champion this in collaboration with other key institutions, and accelerate the process of bond issues in local currencies. UK Bonds, International Finance Facility (IFF): bonds issued on financial markets, backed by pledges from participating governments. June 2006 -27 -

Agenda - tomorrow 9: 00 – 09: 45 xvcxvxvx 9: 45 – 10: 45 – 11: 00 – 12. 00 12: 00 – 12: 45 – 13: 30 – 13: 45 June 2006 Session 1 Energy access and security in Africa Welcome and outline Introductory remarks – framing the issue -Introduction to Energy security in Africa: World Bank -Impact of high oil prices on Africa: African Development Bank Presentations - actions taken or planned -Forum for Energy Ministers of Africa (FEMA) - Russia – plans for G 8 Presidency - African Development Bank - World Bank - African Union Tea and coffee Discussion: what are the common threads? What is the way forward? Session 2 Challenges and opportunities in water resource management Presentations: - Hydropower in Africa: World Bank - Water resources management, the Ethiopian experience: Ethiopia Discussion: what is the way forward? Summing up and close -30 -

ICA Logo June 2006 -31 -

Thank you June 2006 -32 -

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