Presentation to TIPS By Ellen Hagerman TIPS Research Fellow Focus on Infrastructure in Africa African Infrastructure Country Diagnostic AICD Infrastructure Consortium for Africa G20 HighLevel Panel on Infrastructure ID: 799521
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Slide1
Challenges to Regional Infrastructure Development in the SADC Region
Presentation to TIPS
By
Ellen Hagerman, TIPS Research Fellow
Slide2Focus on Infrastructure in Africa
African Infrastructure Country Diagnostic (AICD)
Infrastructure Consortium for Africa
G20 High-Level Panel on Infrastructure
Program for Infrastructure Development in Africa (PIDA)
Presidential Infrastructure Champion Initiative (PICI)
Focus on North-South Corridor
Focus on the Tripartite Agreement
SADC Regional Master Plan for Infrastructure Development
Slide3Corridors
Gather and share lessons learned and best practices from the North-South Corridor
Adopt an integrated, sequential and inter-modal approach to corridor development
Examine relationships between and among projects along the corridor
Undertake a study to identify the best options for managing corridors
Slide4Regional Integration
Undertake further study with relevant stakeholders on the barriers to regional integration linked to regional infrastructure
Investigate other regional bloc models
Identify models for overcoming regional dominance
Establish regional coordinating mechanisms e.g. SPV,PSDPE
Explore ways to improve awareness raising among the general population about the merits of regional integration
Slide5Planning
Promote the merits of early rigor including pre-feasibility to assess bankability
Establish coordinating committees to ensure all relevant gov’t departments are involved
Integrate trade and industrial analysis including value chains and linkages among industries
Assess and promote findings about the financial losses from PPF funding when tenders do not advance
Centralize planning and build in contingencies
Identify a champion
Slide6Planning (2)
6. Allocate sufficient funds for feasibility studies
7. Plan and budget for monitoring/oversight and undertake a preliminary baseline
8. Undertake an upfront skills assessment
9. Build capacity to assess and negotiate contractual agreements
10. Factor in environmental and social considerations
Slide7Capacity Building (CB)
Gather lessons learned from programs that undertake capacity gap analysis
Assess the best pedagogical methods/capacity building programs e.g. learning by doing
Adopt a programmatic approach that incorporates building local capacity as part of the program design
Adopt a cradle-to-grave approach to CB
Gather lessons learned/pros and cons of using external consultants/consortium
Negotiate the use of local capacity and skills transfer
Slide8Financing for Project Preparation
Improve Coordination of PPFs but look at previous efforts e.g. Tunnel of Funds,
MRI
Assess the feasibility and approach to establishing a continental/regional project development facility
Assess the number of projects that go to bankability and assess the obstacles and recommend ways to remove them
Undertake a study to identify an instrument to ensure that PPF money is spent effectively
Bundle PPFs and increase the ceiling (HLP)
Slide9Financing for Project Preparation
4. Undertake a study to determine if increasing upfront funding (fatal flaw financial model) will reduce likely investment in
unbankable
projects
5. Assess the merits of capping the grant equity at 20% for project preparation
Slide10Financing Infrastructure
Assess and document the pros and cons of different financing mechanisms including new financing mechanisms
Investigate options and ways to support governments in dealing with inefficiencies to recoup financing
Investigate ways to finance and incentivize pro-poor infrastructure development
Slide11Financing Regional Infrastructure
Assess the merits of establishing a continent or region-wide risk facility
Assess the merits of regional infrastructure bonds and other financing options
Assess the merits of a regional surcharge, regional payment systems
Gather lessons learned on the involvement and role of regional development banks worldwide
Assess the pros and cons of mechanisms to incentivize MDB staff to leverage additional resources for regional infrastructure (HLP recommendation)
Slide12Financing Regional Infrastructure
6. Assess the pros and cons of mechanisms such as Special Purpose Vehicles to enable countries to jointly support regional infrastructure
7. Assess the experiences and lesson learned of different financing mechanisms when working with countries with different income levels
Slide13Social and Environmental Considerations
Undertake further analysis to determine how the private sector can be incentivized to incorporate social considerations
Assess the value of externalities of social and environmental considerations as part of the overall project cost
Build the capacity of governments to negotiate and integrate CSR considerations and ensure CSO consultation
Slide14Private Sector Engagement
Assess the capacity of African government departments to engage in PPPs
Case studies with the private sector to document challenges and recommendations
Investigate ways to improve the relationship between the public and private sector
Establish an official forum for dialogue between the public and private sector
Draw lessons learned from PPPs
Slide15Emerging Economies (EEs)
Gather lessons learned on building capacity of governments to negotiate with EEs
Gather lessons learned from negotiating favorable contracts e.g. DeBeers
Gather lessons learned from joint ventures of North-South collaboration
Use platforms such as China-DAC, G20 and ICA to share lessons learned and best practices