closing the infrastructure gap: the world bank’s contribution...project • 2/3 regional resources...
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Closing the Infrastructure Gap:
The World Bank’s contribution
Infrastructure Consortium for Africa
Tokyo, March 2008
IDA-14 scale-up sustained
•Sca
le u
p to $
1b o
f new
ID
A len
din
g in F
Y07 sust
ained
in F
Y08
•W
SS d
ouble
d, en
ergy &
tra
nsp
ort incr
ease
d b
y 5
0%
Infrastructure lending by sector ($M)
5
521
596
773
871
721
355
144
0
100
200
300
400
500
600
700
800
900
1,000
ICT
Energy & mining
Transportation
WSS
FY06
FY07
IDA Infrastructure lending in SSA since FY00 ($M)
650
1300
1400
1450
2500
2500 (*)
0
500
1000
1500
2000
2500
3000
FY00/01
FY02/03
FY04/05
FY06
FY07
FY08
(*) tentative
Continued regional engagement
•$1.3
billion for re
gio
nal
infras
truct
ure
pro
ject
s FY
04-F
Y08
•2/3
reg
ional
res
ourc
es d
edic
ated
to infras
truct
ure
Proje
ct
Fis
cal
Yea
r
Net
Com
mitm
ent
(USD
Million)
Reg
ional
Com
munic
atio
ns In
fras
truct
ure
07
164.5
0
Reg
ional
and D
om
estic
Pow
er M
arket
s D
evel
opm
ent
07
296.7
0
CEM
AC
Tra
nsp
ort-T
ransi
t Fac
ilitat
ion
07
201.0
0
Tota
l FY
07
497.7
0
Nig
er B
asin
Wat
er R
esourc
es D
evel
opm
ent
08
186.0
0
South
ern A
fric
a Pow
er M
arket
Pro
gra
m: M
oza
mbiq
ue-
Mal
awi Tra
nsm
issi
on Inte
rconnec
tion
08
93.0
0
Wes
t an
d C
entral
Afric
a A
ir T
ransp
ort S
afet
y a
nd
Sec
urity
08
46.6
5
Tota
l FY
08 (as of M
arch
1, 2008)
325.6
5
Some interesting and innovative deals (1/3)
•A
ddre
ssin
g c
ritica
l en
ergy
supply
gap
in U
gan
da
•Buja
gal
ihydro
-pow
er (250M
W)
•Tea
mw
ork
acr
oss
the
World
Ban
k G
roup
•ID
A P
RG
US$115m
•IF
C U
S$130m
•M
IGA
US$115m
•Lev
erag
ing p
rivat
e se
ctor
inves
tmen
t
•Addre
ssin
g e
nvironm
enta
l,
soci
al c
once
rns
⇒ ⇒⇒⇒WB committed to tackling complex energy projects
CEM
AC T
ransp
ort T
ransit Fac
ilitat
ion
oTota
l finan
cing U
S$700m
o3 c
ountrie
s: C
had
/ C
amer
oon / C
AR
oM
ultip
le d
onors
: ID
A, EC, A
fDB, A
FD
PRO
-RO
UTES e
xam
ple
($123 m
)
o1,8
00 k
m o
f key
ear
th road
s in
DRC
oM
ulti-D
onor trust F
und: D
FID
+ ID
A
oCoord
inat
ed w
ith E
C p
roje
cts
Some interesting and innovative deals (2/3)
⇒ ⇒⇒⇒WB committed to corridor approach in
partnership with other donors
�Reg
ional
Com
munic
atio
ns
Infr
astruct
ure
Pro
gra
m o
n E
aste
rn
Afr
ica
subm
arin
e ca
ble
�U
S$ 4
24 m
illion reg
ional
APL
(US$164.5
m for Phas
e I)
�O
pen
to 2
5 c
ountrie
s in
Eas
t an
d
South
ern A
fric
a
�Phas
e I: K
enya,
Buru
ndi an
d
Mad
agas
car
�Phas
e II
& III
: Rw
anda,
Mal
awi,
Tan
zania
, M
oza
mbiq
ue
Some interesting and innovative deals (3/3)
⇒ ⇒⇒⇒WB committed to addressing key missing links
IDA 15: a record replenishment
•ID
A-1
5 rec
ord
rep
lenis
hm
ent of ar
ound $
40 b
illion
repre
senting 3
0%
incr
ease
over
ID
A-1
4–
Aro
und h
alf w
ill go to S
SA
–A
lmost
hal
f of th
at w
ill go to infras
truct
ure
(U
S$3bn p
a)
–A
round 1
5%
of th
at w
ill go to reg
ional
infras
truct
ure
(US$0.4
5bn p
a)
–G
reat
er fle
xib
ility o
n a
lloca
tions to
fra
gile
stat
es
•ID
A-1
5 spec
ial th
emes
: cl
imat
e ch
ange,
reg
ional
inte
gra
tion, in
fras
truct
ure
, post
-conflic
t co
untrie
s⇒ ⇒⇒⇒IDA in a strong financial position to
continue infrastructure scale-up
Emerging IDA-15 project pipeline
Ten
tative
pip
elin
e in
FY
09 :
Regional integration
$Mill
Transport
Abidjan-Lagos Transport & Transit Project
242
Energy
East Africa power Market
100
West Africa Power Pool (Phase III)
60
ICT
Central Africa Backbone
45
East Africa Telecommunications RCIP II
35
WRM
Lake Victoria Environmental Mgt Projecy II
180
National projects
Transport
Ghana transport
100
Tanzania transport
230
Uganda transport IV
100
DRC multi-modal transport
180
Energy
Kenya access
200
Ethiopia transmission
200
Nigeria energy infrastructure
250
WSS/Urban
Kenya municipal / waste
100
DRC urban water supply
150
Total
2172
New corporate strategies
•Sust
ainab
le Infr
astruct
ure
Act
ion P
lan (FY
09-1
1)
–Focu
s on soci
al a
nd e
nvironm
enta
l obje
ctiv
es (in
par
ticu
lar, c
lim
ate
chan
ge)
–Em
phas
is o
n lev
erag
ing p
rivat
e se
ctor w
ith W
B res
ourc
es
•Reg
ional
Inte
gra
tion A
ssis
tance
Strat
egy (FY
09-1
1)
–Sust
ained
com
mitm
ent to
sca
ling-u
p fin
anci
ng for
regio
nal
infras
truct
ure
pro
ject
s
⇒ ⇒⇒⇒Africa is key corporate priority and
new strategies help to reinforce this
Reaching out to new partners
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2001
2002
2003
2004
2005
2006
US$ billions
Arab
India
China
•Em
ergin
g fin
anci
ers re
ached
US$5 b
illion in 2
006
•Im
portan
t pro
gre
ss o
n
dia
logue
with C
hin
a
–M
oU
with C
hin
a Ex-I
m
Ban
k (M
ay 2
007)
–N
ew W
B D
irec
tor fo
llow
s
Afric
a-Chin
a re
lationsh
ip
–Sta
ff e
xch
ange
with C
hin
a
Ex-I
mBan
k
–Jo
int m
ission for co
-
finan
cing
•Pre
lim
inar
y d
iscu
ssio
ns w
ith
Kore
a Ex-Im
on c
o-fin
anci
ng
⇒ ⇒⇒⇒WB committed to
partnership with
emerging financiers
Addressing power sector emergency
Mai
n C
ause
or Trigger
Nat
ura
l Cau
ses (D
roughts
)
Oil P
rice
Shock
System
Disru
pte
d b
y C
onflic
t
Hig
h G
row
th, Low
Inves
tmen
t/Struct
ura
l Is
sues
Countries affected by power crisis by cause
•A
fric
a’s pow
er c
risi
s has
bec
om
e in
crea
singly
gra
ve
•35 c
ountrie
s af
fect
ed b
y
pow
er inte
rruptions
•47 c
ountrie
s w
ith g
ener
atio
n
capac
ity o
f A
rgen
tina
•600 m
illion A
fric
ans w
ithout
acce
ss to p
ow
er
•South
ern A
fric
a now
dee
ply
affe
cted
•W
BG
ass
ista
nce
will
incr
ease
to o
ver
US$1 b
n
⇒ ⇒⇒⇒WB to increase emphasis on energy sector
•W
B e
fforts cu
rren
tly lim
ited
by ID
A funds
•Nee
d to m
ake
gre
ater
use
of oth
er fin
anci
al
instru
men
ts to incr
ease
res
ourc
e en
vel
ope
–G
reat
er e
ngag
emen
t w
ith M
ICs
–U
se o
f IB
RD
in ID
A c
ountrie
s•
Encl
ave
arra
ngem
ents
•Third P
arty
Guar
ante
e
•In
tere
st rat
e buy d
ow
ns
How can the World Bank do more?
⇒ ⇒⇒⇒WB open to exploring new financing channels
Suggested priorities for ICA
•Continue
donor har
moniz
atio
n, in
cludin
g
lever
agin
g a
dditio
nal
res
ourc
es a
nd rea
chin
g o
ut
to n
ew p
artn
ers
•Enco
ura
ge
pro
active
and a
ccel
erat
ed res
ponse
by
the
donor co
mm
unity a
nd p
rivat
e se
ctor to
the
pow
er c
risi
s
•Exam
ine
and res
pond to the
impac
ts o
f rising fuel
and food p
rice
s th
rough infr
astruct
ure
, in
additio
n
to soci
al m
easu
res