November 14 2013 What is Power Africa Power Africa is about mobilizing private resources to close priority projects in six African countries 2 Power Africa 3 Power Africa Sector Reforms ID: 830317
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Slide1
Power Africa
Governance Donor Partner WGNovember 14, 2013
Slide2What is Power Africa?
Power Africa is about mobilizing private resources to close priority projects in six African countries
2
Power Africa
Slide33
Power Africa
Sector Reforms
Power
Africa recognizes
need
to “do things differently”.
It is a PPP, about
promoting good
business
,
not traditional aid
.
Like
the Big Results Now!, it is about “business unusual.”Power Africa countries selected based on commitment to reforms.Power Africa recognizes role & value of delivery units and their role in catalyzing reforms and fast-tracking transactions.
Slide4Public and Private Sector Collaboration
As part of Power Africa,
over
40
companies
from around the globe have signaled their interest in investing in African energy.
It is up to Tanzania to attract this investment.
For the US Government, Power Africa is a “Whole of Government” initiative which engages: USAID, State Department, OPIC, US Export-Import Bank, Trade & Development Agency, MCC, Department of Commerce, Department of Treasury, Department of Energy.As well, USG seeks opportunities for closer collaboration and coordination with the full range of development partners in each country.
4
Power Africa
Slide5On-going USG Power Activities in Tanzania
USAID Energy Governance Capacity Initiative (EGCI)
MCC 1
st
Compact
5
Power Africa
Slide6USAID Power Activities in Tanzania
Partnership for Growth: A 5-year timeline, started July 2012
Working
with key
sector
counterparts on specific actions MEM, TANESCO, ZECO, REA, EWURA
(eventually TPDC)
Coordinating with USG agencies and other Development Partners, including the World Bank and AfDBUSAID
currently using five mechanisms in Tanzania:Energy Utility Partnership Program: TANESCO & ZECOEnergy Regulatory Partnership Program: EWURA & ZURAEnergy Efficiency Program: TANESCO, ZECO, EWURA, MEMPrivate Capital Group for Africa: REAAfrica Infrastructure Program: EWURA, MEM6
Power Africa
Slide77
Power Africa
U.S
. Department of State-led, interagency effort to provide of technical and capacity building assistance to the governments of select countries on the verge of becoming significant oil and gas producers.
Core objective: help countries establish capacity to manage their oil and gas sector revenues wisely and in a manner that maximizes the value of the resource development for the government.
In Tanzania, EGCI funding supports technical assistance to the Tanzania Revenue Authority to improve payer compliance and enhance capacity related to transfer pricing.
In 2012, EGCI supported the Tanzanian Energy Ministry in hosting
region-wide
conference on managing offshore oil and gas resources.
EGCI is looking at additional opportunities to provide
further technical
assistance and training in the coming months.
Energy Governance Capacity Initiative
Slide88
Power Africa
MCC’s current compact has nearly $207 million dedicated to expanding access to electricity on the mainland and Zanzibar.
MCC- First Compact 2008 - 2013
Nearly 3000 Kilometers of
new
transmission & distribution line
27 new or upgraded substations
New 100 MW submarine power cable between Mainland &
Unguja
$4.7 million PV solar
programme
in
Kigoma
Technical
assistance
to TANESCO
& ZECO
e.g
.,
cost of service support,
loss
reduction
Agenda of
continued
p
olicy
r
eform to
enhance sustainability, e.g. cost reflective
tariffs; enhanced
opportunities for private sector participation
Slide9What’s New under Power Africa
Tanzania’s commitment to reformBig Results Now!Commitment to enabling environment for investment
Increased focus on private sector engagement
Letters of Intent
Developers pledged > 9.6
GW of
generation projects in
Power Africa countries, representing in > $14.5 billion in investment.Financial partners
pledged to make available > $8 billion for energy, via project finance, new financing facilities/platforms, and fundraisingFocus on TransactionsFocus on closing transactionsTransactions Solutions GroupTransactions Advisor(s)9
Power Africa
Slide1010
BRN! Targets ambitious results by 2016
Power Africa
Slide11Much
in commonCommitment to reformsFast-tracking transactions
GOT – USAID Signed
LOI, July 2013
USG to support PDB structure as BRN! succeeds
Power Africa efforts will seek to align with
BRN!
And coordinate with other DPs11
Power Africa
BRN!
– Power Africa Nexus
LETTER OF INTENT
Roadmap
for
sector reform
Adoption
of
Subsidy Policy
Development
of a
REFIT program
Cost-reflective
tariff structure
Unification
& rationalization of PPP
structures
Movement
towards
competitive bidding IPPs/PPPs