NEPAD-IPPF Fund manager, Shem Simuyemba, has revealed that last year the trust approved a total of $14.83 million for the preparation of eight regional projects covering energy, transport and water.
Simuyemba said this while taking stock of achievements during 2016 at a recently held meeting in Abidjan, Côte d’Ivoire.
Simuyemba noted that five power projects were approved, two in West Africa, two in Southern Africa and one in East Africa.
The projects in West Africa include the Nigeria-Benin 330kV power interconnector reinforcement project, executed by the west African Power Pool (WAPP), and the feasibility study for Women in a Changing Energy Value Chain in West Africa under the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREE) intended to unlock business opportunities for women entrepreneurs in the energy value chain.
In East Africa, NEPAD-IPPF funded the Uganda-Tanzania Refined Oil Products Pipeline Project with oversight from the East African Community Secretariat.
In Southern Africa, approved projects were, the Zambia-Mozambique 400kV Power Interconnector Project and the Kolwezi (DRC)-Solwezi (Zambia) 330kV Power Interconnector Project linking the two copper-mining belts of Katanga in the Democratic Republic of Congo and Northwestern Zambia.
The executing agency for the two projects is the Southern Africa Power Pool (SAPP). The Zambia-Mozambique Power Interconnector Project is co-financed with the US Trade and Development Agency.
Generating bankable projects
According to Simuyemba, project preparation and development work undertaken by NEPAD-IPPF has had a major impact in generating bankable projects, which have attracted financing for implementation.
He gave an example of the Power Interconnector, 330kV North Core Project involving Nigeria, Niger,Benin and Burkina Faso.
Simuyemba further noted that NEPAD-IPPF provided $5.9 million for the preparation of this project (one of the largest grants for a single project).
He said the estimated financing cost of the project was $681.67 million. Simuyemba highlighted that at the North Core Financing Roundtable held on 9 November 2016, under the auspices of WAPP and the countries concerned, the project attracted $1.205 billion in financing pledges.
“NEPAD-IPPF is a tested brand across Africa in supporting African countries to prepare complex, cross-border regional infrastructure projects and to bring them to bankability and therefore offers a total-project-development-solution,” Simuyemba said.
The NEPAD-IPPF is a multi-donor Special Fund hosted by the African Development Bank (AfDB), established under the G8 as part of the support to the NEPAD African Action Plan. It is managed in close partnership with the African Union Commission and the NEPAD Agency.
Its role is to provide grants to African countries through regional economic communities and specialised regional infrastructure institutions such as power pools to undertake feasibility, technical and engineering designs, environmental and social impact assessment studies.
NEPAD-IPPF is also tasked with the preparing of tender documents and transaction advisory services to make projects bankable for financing and implementation in support of Africa’s socio-economic transformation.