EuropeAid

Enabling infrastructure and urban development projects in ACP countries

The European Commission support

June 2009

Raul MATEUS PAULA, EuropeAid

EuropeAidThe case for Infrastructure: A major constraint on Africa’s development

• Transport:o 40% of Africa’s population live in landlocked countrieso Only one third of people have access to all-season roadso Several African airlines banned from EU

• Energy:o Only 20% of Africa’s population has access to electricityo High energy losses (Kenya looses 10% of manufacturing output

through power cuts)• ICT:

o International calls cost up to 20 times more than other developing regions

o Bandwidth costs up to 40 times more than some developed countries

o BUT spectacular growth in mobile phone use

EuropeAidEU-Africa Infrastructure PartnershipObjectives

• EC Communication (2005) • EU – Africa Partnership launch (October 2007)• EC Communication on helping developing countries in coping with the

crisis (2009)

• Promote achievement of MDGso Sustainable economic growth

• Interconnectivity• Regional Integration

o Identify and address missing linkso Harmonise transport policieso Integrated water managemento Cross-border and regional energyo Bridge the digital divide

EuropeAidEC and Infrastructure in ACP countriesa long term commitment

Transport € 5.2 billion

Water € 1.4 billion

Energy € 225 million

Urban

Development

€ 800 million

TOTAL € 7.7 billion

EuropeAid

EuropeAidEU-Africa Infrastructure PartnershipEU Water Facility

Total project Cost : € 783 million EC Contribution : € 417 million

Pacific 4 projects; 7,6 M € - 2%

Multi Regio 12 projects;15,9 M € - 4%

Caribbean 10 projects;13,8 M € - 3%

West Africa - 46 projects;89,6 M € - 21%

East Africa 59 projects; 166,7 M € - 40%

TOTAL: 175 projects

Southern Africa 29 projects;

100 M € - 24%

Central Africa 15 projects; 23,8 M € - 6%

EuropeAidEU-Africa Infrastructure PartnershipEU Energy Facility

Total project cost: € 424 million

EU Contribution: € 197 million

East Africa: 19 projects;

39,0 M € - 20%

TOTAL : 75 projects

Central Africa: 8 projects;

35,6 M € - 18%

Southern Africa:13 projects;

50,9 M € - 26%

Multi Regio: 3 projects;

4,7 M € - 2%

Pacific: 4 projects;

2,2 M € - 1%

Caribbean: 6 projects; 10,1 M € - 5%

West Africa: 22 projects

54,9 M € - 28%

EuropeAid

EU – Africa Infrastructure Partnership Sectoral Support to Institutions (1/2)

• Support to the AUCo Support to the budget € 55 million

• To the Infrastructure and Energy Dept: € 2 million

• Energy: c. € 14 milliono Power Pools [Central, East, South, West] € 7.5 milliono Regions [ECOWAS, SADC]: €4.5 milliono ECOWAS Electricity Regulator :€1.7 million (tbc, Trust Fund)

• ICT over € 10 million o ITU: Legislation/Regulatory Framework:

• Initial phase, West – Central Africa € 2.5 million (compl.)

• Pan SSA cover, national adoption: € 4.5 milliono allocation from on-going € 9.5 million call for proposals

• Transport: € 16 million o Sub- Saharan Africa Transport Programme (SSATP),

equally split (€ 8 million) for 2004-08 and 2009-13

EuropeAidEU – Africa Infrastructure Partnership Sectoral Support to Institutions (2/2)

• Water: c. € 30 milliono AMCOW: € 2.6 million, Nile Basin Initiative: € 18 milliono River Basin Organisations: € 10 million

(Chad, Volta, Niger, Orange, Kagera)

• All infrastructure sectors :o AFUR (African Forum for Utility Regulators) € 1.3 m

• Environment: c. 50 milliono Multilateral Environmental Agreements, c. € 10 million

(UNEP – Regional Hubs & UNCCD: Combat Desertification)o African Monitoring of Environment (AMESD)

2007-’11: € 21 million plus € 8 million (10th EDF)

EuropeAid10th EDF Multiannual Financial Framework

2008-2013

  EDF 10 %

of totalp.m.

EDF 9

1. National and regional cooperation 17.766 81% 12.177

2. Intra - ACP cooperation 2.700 12,3% 3.059

Sub-total managed by the Commission 20.466   15.236

3. Investment Facility (managed by the EIB) 1.500 6,8% 2.224

Sub-total operational credits ACP 21.966 100% 17.460

OCT (incl investment facility) 286 1,3% 329

Support expenditures 430 2% 331

Total ACP + OCT support 22.682   18.120

EuropeAid10th EDF programming Results at country level -

Sector Breakdown

Sector breakdown EDF9 - EDF10

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EDF9 initial EDF9 MTR EDF10

Sect

or s

hare

in N

IP A

-env

elop

e

General budget support

Other

NSA

Social cohesion

Education

Health

Agriculture, ruraldevelopment, food securityEnvironment

Water & energy

Transport infrastructure

Economic growth, incltrade & regional integrationDemocratic governance,incl peace & security

EuropeAidEC support to Africa’s infrastructure

2008-2009 Commitments

• NATIONAL PROGRAMMES 2008-2009

• Transport: € 1.6 billiono 2008: € 1.1 billiono 2009: € 500 million

•Water: € 520 million o 2008: € 220 milliono 2009: € 300 million

• Energy: € 75 million

EuropeAidEC support to Africa’s infrastructure

2008-2009 Commitments

• Intra REGIONAL PROGRAMME 2009-2010

• Facilities: € 400 million [2009]o Water: € 200 milliono Energy:€ 200 million

• Infrastructures: € 300 million [2009-2010]o Institutional supporto Infrastructure Trust Funds

• Global Efficiency & Renewable Energy Fund: € 75 million • Global Climate Change Alliance: €50m (Budget) + €40m (EDF)

EuropeAidEU – Africa Infrastructure Partnership EU-Africa Infrastructure Trust Fund

• Significant leverage

Sources of financing Projects approved Clearance “in principle”

Trust Fund

(grants)c. € 65.7 million c. € 12.7 million

Project Financiers

(loans)c. € 229 million c. € 103 million

TOTAL COST

of projectc. € 829 million c. € 250 million

PFG leverage

(PFG/TF)3.5 8.11

Total Financing

Leverage (Total/TF)12.6 19.7

EuropeAidUrban development: EC-funded projects

• 3 areas of cooperation :• Rehabilitation and reconstruction of basic urban

infrastructures following conflicts and natural disasters• Risks reduction and disaster prevention• Urban operations

o Buildings for health and education, markets, judiciary…o Solid and liquid waste managemento Technical assistance to municipalities / urban

microprojectso Slum upgrading and improving living conditions in townso Cultural heritage protection and preservation of

historical sites and buildingso Local economic development and micro-finance

EuropeAidEC presence in ACP countries

• Ad-hoc operations, mostly in social/transport/water sectors.

• LRRD activities, as part of security and recovery strategy (RDC, Haiti, Liberia…)

o with UN-HABITAT: “Urban Sector Profile Studies” per selected

countries to identify areas for support and a framework for long term interventions, 4 M€, approved 2007

o with WB Trust-fund “Cities Alliance”:Anti-slum strategies and urban poverty reduction,EC participation of 0.75 M€, approved 2007

EuropeAidCities Alliance Trust Fund

• EC contribution of €0.75M aims at broadening the scope of action to multilateral initiatives for urban development in ACP countries

• North-South partnership for common actions targeted to urban zones and poverty reduction.

• The EC participates in this unique partnership through a consultative group, allowing to develop a dialogue on:

o Public and/or Private Partnerships,o Research, o Innovation, o Institutional, political and other barriers to poverty reduction

in the urban context

EuropeAidARIAL – Supporting and Strengthening

Local Authority Associations

• Promoting and strengthening Local Authorities in ACP countries, including cities, vis-à-vis the strategic dialogue at national and international level.

• At EU level the ACP Local Government Platform (ACP LGP) has been recognised to have a de facto monopoly on representing ACP local authority associations. ACP LGP will receive a grant to carry out activities in representation, networking and support for ACP local authority associations - € 1 million

• For the support to local authority associations at regional and national levels, a call for proposals will be published to identify an implementing partner - € 5.6 million

EuropeAidNatural Disaster Facility

• ACP regional organisations: • 9th EDF: €12 M for 6 sub-regional programmes for 2007-2011

• Reinforcement of institutional structures for disaster risk management• Development and implementation of mechanisms for

knowledge management and information sharing• Reinforcement of natural disaster early warning capacities • Development of national and regional policies, strategies

and action plans• Ready to start in the Pacific region.• 10th EDF allocation: € 180 million

EuropeAid

Thanks - Merci