Africa: new regional roads, ports, airports and power generation schemes

In 2009, a total of 11 grant operations were approved by the EU-Africa Infrastructure Trust Fund to build large-scale energy, transport and information and communication technology infrastructures of regional importance across Africa. The Trust Fund, managed by the European Investment Bank, further expanded its budget in 2009. Total grant resources of EUR 372 million have been provided to the Fund since its launch and could leverage up to EUR 5 billion in loans from European or international development financial institutions and the private sector. The European Commission, the main contributor to the Fund, increased its participation by EUR 200 million.

“Regional integration is a key part of the recipe for a successful sustainable development of Africa. I intend to keep it high on the EU agenda: as Europe experience shows, no regional markets in Africa, no growth. The Trust Fund also shows how development aid can be used to leverage other funds. This is key for Europe since we provide 60% of global aid for development. We have to make better use of aid money and I have set a target that every aid Euro should leverage five euros of other kind of funding for aid. At the moment, the Trust Fund already exceeds that target", stated Andris Piebalgs, European Commissioner for development.

"The European Investment Bank is pleased to work closely with the European Commission and the other donors. The EIB manages the EU Africa Infrastructure Trust Fund and hosts the Secretariat. We congratulate the Trust Fund's proven role as a catalyst for identifying new and innovative projects and its significant contribution to reinforce the cooperation with European Development Finance Institutions": added Plutarchos Sakellaris, EIB Vice President responsible for operations in Africa, Caribbean and the Pacific.

The 11 projects (see annex), add to 8 projects approved in 2007 and 2008, include:

• Hydroelectric schemes, such as Felou in West Africa as well as,
• Electricity interconnection schemes, such as the Benin-Togo interconnection and the Caprivi (Namibia-Zambia) interconnection
• Roads, railways, airports and ports, such as Beira, Walvis Bay, Pointe Noire, Port Louis, the Jomo Kenyata International Airport or the Great Eastern Road in Zambia
• The East African Submarine Cable system (EASSy), a fibre optical cable linking Southern and Eastern African countries into the international communications network.
• Preliminary studies for Sambagalou and Gouina in West Africa or Ruzizi and Gibe hydroelectric schemes in Central and Eastern Africa

The activities of the fund will be discussed at the high level conference "Joining up Africa: Regional Economic Integration in Africa" on 4 March in London, in presence of Commissioner for Development Andris Piebalgs.  It will look at how the European Commission and African institutions, donors, business and investors can better work together for regional integration in Africa.

009 marked a record for the Trust Fund. The European Commission increased its participation by EUR 200 million; the UK also pledged to increase its financial contributions to the Fund by EUR 20 million and Finland joined as the 13th donor with EUR 5 million.

Since the Fund was launched in 2007, over EUR 96 million worth of grant funding has been allocated and a total of EUR 122 million earmarked for key infrastructure projects, leveraging to date EUR 1.5 billion. Based on current trends, the total grant resources of the Fund have the potential to leverage investments from financial institutions and European, African or international project sponsors, including the private sector up to EUR 5 billion.

Background information:

The EU Africa Infrastructure Trust Fund is the main financial instrument for the implementation of the Africa-EU Partnership on Infrastructure. The Partnership was launched in 2006, together with the European Investment Bank and Member States, and aims at reinforcing regional integration through the strengthening of large continental infrastructure networks. The African Union Commission is the main interlocutor of the European Union for the implementation and further development of the Infrastructure Partnership, in close dialogue with regional bodies, specialised agencies and African financial partners.

More information

EU-Africa Infrastructure Trust Fund: www.eu-africa-infrastructure-tf.net.
Information about the Africa EU partnership is available at http://www.africa-eu-partnership.org/index_en.ph

Press contact at the European Commission: http://ec.europa.eu/europeaid/index_en.htm

Annex: 11 projects approved in 2009

Approved Grant Operation	Sector	Scope	PFG Lead Financier	Co-Financiers	Grant Amount	date of ExCom approval	Project beneficiary countries	Description
WAPP - Coastal Backbone	Energy	TA	EIB	tbd	1.750.000	27/03/2009	Ivory Coast, Ghana, West Africa	Support to WAPP for the procurement of consultancy for 2 preparatory studies for a power interconnection between Ivory Coast and Ghana
Update of the WAPP Masterplan	Energy	TA	EIB	na	935.000	22/10/2009	West Africa	Update of the WAPP Masterplan for production and transmission
Port de Pointe Noire	Transport	IRS	AfD	EIB	6.600.000	10/11/2009	Rep. Congo and Central Africa	Strengthening and extension of the external seawall; the rehabilitation of wharfs, public and access roads; the installation of a terminal for containers, and a wood storage zone
ECOWAS Electricity Regulation	Energy	DG	AfD	tbd	1.700.000	10/11/2009	West Africa	ITF Grant to be used by the nascent ECOWAS Regional Electricity Regulatory Authority (ERERA) to implement its first regulation activities.
Benin - Togo Power Rehabilitation	Energy	IRS	EIB	KfW	12.250.000	10/11/2009	Benin, Togo	Power grid and electricity transport reinforcement in Benin and Togo
SRESA - Strategic Regional Environmental & Social Assessment	Energy	TA	EIB	AFD, KfW	700.000	14/12/2009	Mozambique, Southern Africa	Study in the framework of the CESUL transmission backbone project connecting the central and southern electricity grids and generation sites
JKIA Upgrading and Rehabilitation	Transport	TA	EIB	AfD	5.000.000	14/12/2009	Kenya and connecting countries	Expansion of Nairobi Airport for the benefit of the East Africa region
Expansion of Port of Walvis Bay	Transport	TA	KfW	EIB, AFD	450.000	14/12/2009	Namibia and neighbouring countries	Update of the Environmental Assessment of the Walvis Bay extension project
Port de Pointe Noire	Transport	TA	AfD	EIB	2.000.000	14/12/2009	Rep. Congo and Central Africa	Consultancy services focussed towards implementing safe procedures, strengthening internal audit and capacity building for the financial and accounting staff of PAPN in order to help decreasing the credit risk for the Port's lenders. The Port Authority further needs external support for implementing an environmental management plan in the day-to-day operation period.
OMVG Phase 2 (Sambangalou Hydro Power)	Energy	TA	AFD	EIB, KfW	350.000	14/12/2009	Gambia, Guinea, Guinea-Bissau, Senegal	Updating economic and environmental study of the Sambangalu Hydropower Project
Gibe 3 Hydro Power Plant	Energy	TA	EIB	tbd	1.300.000	14/12/2009	Ethiopia, Kenya, Djibouti, Sudan	ESIA for the Lake Turkana region in the framework of the financing of a 1870 MW hdydroelectric power plant