Challenges to Regional Infrastructure Development in the SADC Region - PowerPoint Presentation

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Challenges to Regional Infrastructure Development in the SADC Region

Presentation to TIPS

By

Ellen Hagerman, TIPS Research Fellow

Focus 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

Corridors

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

Regional 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

Planning

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

Planning (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

Capacity 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

Financing 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)

Financing 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

Financing 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

Financing 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)

Financing 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

Social 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

Private 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

Emerging 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