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African Development Bank Group (AfDB)
African Union Commission calls for further financial input for the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund
The African Development Bank approved in June 2019 the allocation of UA 3 million from its 2018 Net Income to NEPAD-IPPF
ADDIS ABABA, Ethiopia, July 5, 2019/ — The 29th Oversight Committee (OC) meeting of the New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund held at the headquarters of the African Union Commission in Addis Ababa, Ethiopia, has ended with calls for increased investments to accelerate the closure of Africa’s infrastructure gap.
The meeting, held on 28 June 2019, was hosted by the AUC and chaired by KfW Development Bank (Germany). Topics discussed included the NEPAD-IPPF Independent Review report, the introduction of reimbursable grants as part of the new business model, the mid-year progress report, updates on continental infrastructure initiatives, and adoption of a proposed joint AUC/AUDA/AfDB Domestic Resource Mobilization Strategy.
Michael Andres, the Oversight Committee Chairman, commended the achievements of NEPAD-IPPF and noted that more resources are required given the increasing demands being made on the fund.
“The NEPAD-IPPF Special Fund must continue to focus on key priorities, such as PIDA Projects to support the African 2063 Agenda.” Andres said.
While speaking on the Fund’s progress in the first semester of 2019, African Development Bank Director for Infrastructure and Urban Development Amadou Oumarou urged participants to consider the continent’s enormous infrastructure needs.
“New contributions from Spain (Euro 3 million) and the African Development Bank (UA 3 million) are indications of confidence in the Fund’s ability to successfully fulfil its mandate, and also recognition that the NEPAD-IPPF is playing a critical role in infrastructure development in Africa. It is therefore expedient for (the Fund) to be further strengthened with the necessary resources to enable it to meet its objectives and mandate,” Oumarou said.
The meeting convened over 30 participants including donors providing financial support to the NEPAD-IPPF Special Fund, representatives from the African Development Bank, the African Union Commission, the African Union Development Agency (AUDA-NEPAD), Regional Economic Communities (RECs), River Basin organizations and regional corridors authorities.
For AUC Director for Infrastructure and Energy, Cheikh Bedda, “The Programme for Infrastructure Development in Africa (PIDA), and Africa’s infrastructure priorities cannot be implemented without adequate resources committed to the NEPAD-IPPF, a critical instrument to prepare high quality bankable regional infrastructure projects across Africa”.
Providing updates on the Fund’s operational performance NEPAD-IPPF Fund Manager Mike Salawou, stated that cumulative contributions by donor partners including the African Development Bank amounted to $102 million, out of which $96.1 million had been committed to approve 91 projects. As at June 2019, 60 studies have been completed, 9 cancelled and 22 are on-going, he noted.
The African Development Bank approved in June 2019 the allocation of UA 3 million from its 2018 Net Income to NEPAD-IPPF. In addition, the Spanish Government announced a new contribution of EUR 3 million to NEPAD-IPPF in May 2019.
Among the studies completed by the Facility, 30 have so far reached financial close and attracted financing of $24.2 billion for physical implementation of power plants, bridges, ports, roads, hydropower schemes, and ICT projects. Of these successful projects, 17 have been constructed, 11 are under construction and two are yet to commence.
“While disbursements of committed funds on supported projects have reached a record, beyond that and without any new contributions to the Fund, NEPAD-IPPF will not be in position to support additional project preparation activities, therefore, there is a need for urgent replenishment of the Special Fund,” Salawou stressed.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
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The African Development Bank Group (AfDB) (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: j.mp/AfDB_Media
The New Partnership for Africa’s Development Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund, hosted by the African Development Bank, is a leading project preparation facility in Africa, which plays a catalytic role in mobilizing resources for preparation of regional projects and programs such as the Programme for Infrastructure Development in Africa. It’s a multi-donor Fund established in 2005 to assist African countries, Regional Economic Communities (RECs) and Infrastructure related institutions for: (i) preparing high quality and viable regional/continental infrastructure projects with a view to requesting financing from public and private sources; (ii) developing a consensus and partnership for project implementation; and (iii) promoting infrastructure projects and programs aimed at enhancing regional integration. The Fund supports projects in transport, energy, ICT, and water sectors. The special fund is currently supported by the Bank as host institution, Canada, Germany, United Kingdom, Norway, Denmark, and Spain. Participation in the special fund is open to donors, institutional funds and other special infrastructure funds.
African Development Bank Group (AfDB