ACTIVITY IMPLEMENTATION PROPOSAL

Transcription

1 ACTIVITY IMPLEMENTATION PROPOSAL TITLE Enhancing the Business Environment for Infrastructure Investment in Africa AIP Ref. WP Type of activity requested WP Activity N Item Amount in Euro Regulatory Framework and SOE reform at Regional level Work Programme Region/country Study & contribution to a 2-day regional workshop (60 participants) Contingencies (3%) Total Cost AFRICA Duration of Activity 6 months Sector Overall Business Enabling PMU STE 1 assigned Chris ADDY-NAYO Environment Topic Public Private Dialogue PMU STE 2 assigned Type of Seminar/workshop intervention Implementation modalities Framework contracts Service contracts Nbre 0 1 PMU STE 3 assigned Description Study & Organisation of a 2 day regional workshop Page 1 of 17

2 NAME OF THE REQUEST TITRE DE LA REQUETE REGION/COUNTRY CONCERNED PAYS OU REGIONS CONCERNES SECTOR CONCERNED SECTEUR OU THEME CONCERNE Enhancing the Business Environment for Infrastructure Investment in Africa - Ai Infrastructure Project Summit 2008 Africa Studies in Investment prospects and financial system development (Etudes sur les potentialités d investissement et le developpement du système financier) SUMMARY OF THE INTERVENTION REQUESTED Résumé To date private sector engagement in infrastructure development and related policies has been low and has largely being the preserve of the donor community working with African governments. With the advent of alternative financing means and the increasing recognition of the role the private sector can and must play to design, finance, implement and maintain critical infrastructure projects and assets, the Ai Infrastructure Projects Summit was conceived and has become a critical forum for the infrastructure policy and investment community to address project issues. The Summit is therefore keen to open up the forum to a wider group of project stakeholders from the African business community (especially project developers who currently lack the resources to participate) to participate and lend their practical know-how and experience to improve the business environment and remove bottlenecks holding back preidentified investable infrastructure projects. Specifically the project seeks to initiate dialogue between private sector developers and governments to develop legislation, institutional and financial measures promoting private sector funding, investments and EU technology transfers in infrastructure investments across the African region. The project also aims to explore alternative sources to donor and aid funding for infrastructure investments in the African region. Two main Activities are involved in the project. These include: (i) A study on policy, legislative reforms & financial proposals for enabling the business environment for Public Private Partnership (PPP) Infrastructure Investments; (ii) A 2 Day Summit Titled Ai Infrastructure Project Summit, Johannesburg November 2008, to bring together EU & African investors, private sector stakeholders, regional institutions, civil society, government bodies, project partners, etc. to discuss proposals for policy & legislative reforms which will help enhance the business environment for private sector investments. The main project outputs include: (i) (ii) A study recommendations on enhancing the investment environment and the introduction of new financial products for infrastructure development; and Secondly, the dissemination of the study findings and recommendations for its implementation from participating private sector infrastructure stakeholders. Page 2 of 17

3 NAME OF THE APPLYING ORGANIZATION: NOM DE L ORGANISATION ADDRESS: (Street, Post Code and Country) ADRESSE (rue, code postal et pays) CONTACT PERSON: PERSONNE DE CONTACT FUNCTION OF THE CONTACT PERSON FONCTION ADDRESS ADRESSE COURRIEL TELEPHONE TÉLÉPHONE FAX FACCIMILE SKYPE (if any) Africa Investor Africa Investor Ltd 25 Floral Street Covent Garden London WC2E 9DS United Kingdom Muhati Jacquie Danso, Hubert Muhati Jacquie; Head of Marketing & Events Danso, Hubert: Vice Chairman Muhati Jacquie: jmuhati@africa-investor.com Danso, Hubert : hdanso@africa-investor.com Switchboard: Fax: Muhati Jacquie: Muhatijacquie Danso, Hubert: Hubert Danso DATE OF THE REQUEST 17 November 2007 PARTNER ORGANISATIONS Please indicate the name of the partner organisations and contact person(s), including their adresses Merci d indiquer le nom des organisations partenaires, des personnes de contact et leur adresses Africa Investor has teamed up with: NEPAD Business Group The Presidency, NEPAD NIGERIA, 11A Ganges Street, Maitama, Abuja, Nigeria Telephone: or Page 3 of 17

4 HOW THE PROPOSAL IS LIKELY TO LEAD TO FOLLOW- UP ACTIVITIES? COMMENT LA PROPOSITION EST- ELLE SUSCEPTIBLE DE CONDUIRE A LA PRISE EN COMPTE DES RECOMMANDATIONS ET DE DEBOUCHER SUR LA MISE EN OEUVRE D ACTIVITES DE SUIVI? IS THE PROPOSAL CONSISTENT, COHERENT AND COMPLEMENTARY WITH OTHER INTERVENTIONS? EST-CE QUE LA PROPOSITION EST COHÉRENTE, CONSISTENTE ET COMPLÉMENTAIRE À D AUTRES INTERVENTIONS? EXPLAIN TO WHAT EXTEND THE PROPOSAL IS SUPPORTED BY KEY STAKEHOLDERS? EXPLIQUEZ DANS QUELLE MESURE LA PROPOSITION EST SOUTENUE PAR LES PRINCIPALES PARTIES PRENANTES? Specific Policy Initiatives on Infrastructure Investments would be developed into fully substantiated policy proposals for submission to national and regional authorities leading to the reinforcement of the role of the Private Investor and Investment Institutions in Infrastructure Development. The purpose is to develop realistic and well documented Policy proposals to strengthen the ability of Investors, Private Sector Intermediaries and related Organisations to advocate for measures which would enhance the Business Environment for Infrastructure Investments. The proposal compliments the NEPAD Infrastructure Project Facility to mobilize technical and financial resources to strengthen the capacity of African institutions and governments to formulate viable infrastructure development projects and programmes and to assist countries, and specialised institutions towards infrastructure development and Investment projects in support of NEPAD. This would be achieved by providing support for the creation of an enabling environment to enhance private sector participation in infrastructure development and support targeted at capacity building initiatives. Key stakeholders for the proposal include amongst others Ministries of Works, Transport & Communication, Ministries of Justices, Investment Promotion Centers, Association of Bankers, European Investment Bank, Civil Society Groups, Treasury, Local ministries of Finance, Regional Economic Communities (REC s), Consulting and contracting engineering firms, Project developers, Infrastructure Funds, Donors, African Development Bank, Project Preparation facilities, African Pension Funds, NEPAD and the African Union The Project would raise awareness and develop the capacities of Officials in Policy, Regulatory and Financial initiatives which will enhance the Business Environment for Private sector Infrastructure Investments. It will also raise awareness and understanding of Regulatory thematic issues such as Competition & Investment Policy and Procurement Law to enable Regulators draft legislation which will impact positively on the business environment for investments. Investment Agencies would be encouraged to promote and facilitate investments in all sectors of the economy and have their awareness raised on themes leading to the development of capacities and competencies in Infrastructure Investments. The participation of Local & Regional Financial Institutions in the project will help build capacities on policy & regulatory issues and feed these into the development of innovative financial products for infrastructure investments. The European Investment Bank will be invited to participate in the Summit and to raise awareness into Page 4 of 17

5 existing products and services available to regional banks for infrastructure investments. The project would also enhance the understanding of civil society groups and to secure their support for policy reforms in investment sectors promoting sustainable development and poverty reduction. The proposal would provide inputs into ongoing work programmes of the various regional bodies on Trade & Infrastructure as is relevant to facilitate intra-regional trade and integration. Page 5 of 17

6 ACTIVITY INTERVENTION LOGFRAME SUMMARY OF THE INTERVENTION REQUESTED Résumé To date private sector engagement in infrastructure development and related policies has been low and has largely being the preserve of the donor community working with African governments. With the advent of alternative financing means and the increasing recognition of the role the private sector can and must play to design, finance, implement and maintain critical infrastructure projects and assets, the Ai Projects Summit was conceived and has become a critical forum for the infrastructure policy and investment community to address project issues. The Summit is therefore keen to open up the forum to a wider group of project stakeholders from the African business community (especially project developers who currently lack the resources to participate) to participate and lend their practical know-how and experience to improve the business environment and remove bottlenecks holding back pre-identified investable infrastructure projects. The project aims to improve legislation, institutional set up and financial measures relating to the enabling business environment for and to establish a stable macroeconomic framework to encourage private sector investments in infrastructure development leading to economic growth, sustainable development and poverty reduction. Specifically the project seeks to initiate dialogue between private sector developers and governments to develop legislation, institutional and financial measures promoting private sector funding, investments and EU technology transfers in infrastructure investments across the African region. The project also aims to explore alternative sources to donor and aid funding for infrastructure investments in the African region. The main project target groups include amongst others Ministries of Works & Infrastructure, Transport & Communication, Ministries of Justices, Investment Promotion Centers, Association of Bankers, EIB, Civil Society Groups, Treasury, Local ministries of Finance, Regional Economic Communities (REC s), Consulting and contracting engineering firms, Project developers, Infrastructure Funds, Donors, African Development Bank, Project Preparation facilities, African Pension Funds, NEPAD and the African Union. Two main Activities are involved in the project. These include: (i) (ii) A study on policy, legislative reforms & financial proposals for enabling the business environment for Public Private Partnership (PPP) Infrastructure Investments; A 2 Day Ai Infrastructure Projects Summit, in Johannesburg to bring together EU & African investors, private sector stakeholders, regional institutions, civil society, government bodies, project partners, etc. to discuss proposals for policy & legislative reforms which will help enhance the business environment for private sector investments. The main project outputs include: (i) (ii) Recommendations to enhance the Business investment environment and the introduction of new financial and Policy Proposals for infrastructure development; and Secondly, dissemination of the study findings and recommendations to private sector infrastructure stakeholders across the Region. Page 6 of 17

7 PROBLEM TO BE ADDRESSED : Problèmes à résoudre What is the specific problem which requires solution? African Investor with the support of Regional Investment Promotion Centres, Private Sector Infrastructure Investment Intermediaries and Regional Bodies is putting this request together to establish dialogue with Governments towards exploring options to enhance the policy & legislative environment for private sector funding in infrastructure development in the region. One of the major problems confronting Governments in the region is the poor state of infrastructure. Considering that these are investments which have been the prerogative of central Governments for a long time, private sector actors have found it difficult to intervene in the provision of capital intensive infrastructure and services. The absence of an enabling environment for investments has created an environment where the private sector is reluctant to invest in infrastructure development. As a result we see a situation where investments in the region have been made the sole prerogative of Governments and donor agencies. The Cotonou Agreement gives a central role to the private sector as the engine of economic growth and seen as a necessary condition to reduce poverty. However, the current institutional framework in place in most countries in the region falls well short of effectively addressing complex private sector issues to enhance the business environment for investments in infrastructure. Countries often lack the expertise to help implement reforms for an enabling environment. As a result, private sector investments in infrastructure development have been limited than its inherent potential. Some of these challenges can be traced to weak institutional capacity of public agencies and the private sector to design and implement complex policy & regulatory issues related to infrastructure investments. A clear regulatory framework which secures an enabling environment is therefore needed to enhance both public and private investments in infrastructure development. The absence of an enabling environment has made it difficult to stimulate finance in from the private sector outside the traditional sources of donor aid and government finance in many African countries. Other reasons for limited private sector involvement includes the challenging macroeconomic situation in many African countries, a low level of development of local financial markets; exchange rate instability, corporate governance issues and a high non-commercial risks for long term investments. Consequently, there are several impediments to long term private capital commitments required for investments in Infrastructure in the developing countries. There is need to consider new innovative financial instruments guaranteeing and leveraging the mobilization of funds from a wide range of sources including donors, development finance institutions such as EIB, ADB, private equities and Government subsidies to enable investments to be made in infrastructure. Page 7 of 17

8 PURPOSE OF ACTIVITY: But de la proposition Who are the beneficiaries and how will they benefit? How will the results of the activity solve the problem(s)? The Ai Infrastructure Projects Summit 2008 will promote a greater understanding of policy issues to fast track infrastructure projects amongst public and private project stakeholders and to mobilize private capital to support project implementation. The Summit will also help facilitate knowledge and dialogue to improve the infrastructure investment climate amongst public and private sector stakeholders around projects of common interest. Project beneficiaries amongst others include indigenous African investors, EU investors & infrastructure companies, the EIB & local bank and civil society groups. Private African Investors: The project will create an enabling environment for African investors to collaborate with each other towards making new infrastructure investments across the region. This would lead to the creation of new businesses and the introduction of new technologies into the economies of the region. Corporate Entities in Infrastructure Development: Current policy makes it difficult for companies to raise the requisite finance for infrastructure investments. The project would help raise awareness amongst private companies on impacts of the business environment on their operations and will also provide corporate bodies opportunities to identify new sources of finance either locally or with the support of donors for infrastructure development. EIB & Local Financial Institutions: The project would raise awareness of the EIB INFAC Facility amongst African infrastructure investors to enable cooperation between EIB and local regional banks, towards initiating dialogue and cooperate towards identifying strategic economic sectors in infrastructure development. The proposal would also provide support towards identifying new financial instruments from regional and local banks which could be made available for investments in infrastructure development. Page 8 of 17

9 EXPECTED RESULTS : Résultats attendus What are the results expected from the activity? (one or more results will achieve the Purpose) Expected results from the project include a diagnostic study of the policy environment leading to the design of an improved policy and legislative framework for infrastructure investments. It also includes recommendations for an improved financial investment framework and enhanced capacity of project developers to attract and initiative infrastructure investments. In detail: (i) Relevant and Diagnostic Study of the Infrastructure Investment Policy Environment The project would lead to a study and consultations amongst infrastructure investors on current policy challenges. This would lead to the documentation of existing bottlenecks in terms of the legal, regulatory, institutional, and financial set up required for investments in cross-border infrastructure projects. This is towards improving the enabling environment for private sector involvement in the industry; (ii) Improved Policy & Legislative Framework Recommendations would help improve the capacity of private investors, Investment Promotion Centres and Governments to identify existing bottlenecks leading to an improved knowledge to facilitate ongoing policy dialogue on improving the infrastructure investment climate. This would lead to an improved capacity for donor Agencies and other development partners, including the European Commission, to relate in a proactive manner to issues in infrastructure development in the region in Public Private Partnerships (PPP) related Projects. (iii) Improved Innovative Financial Investments into the Sector The study would also identify best options for private funding in the infrastructure sector to include donor finance and other multilateral financial initiatives, local finance for the banking industry, private equities, Government & municipal bonds, microfinance initiatives, grant subsidies and other financial schemes for social infrastructure projects. (iv) An improved Capacity of Project Developers to Initiate Infrastructure Investments The proposal would result in an improved capacity of partners and the private sector to facilitate investments and inter-enterprise cooperation agreements in both the EU and other African countries to increase inward flows of investment, technology, know-how and managerial skills. Page 9 of 17

10 RELATED PROGRAMMES AND OTHER DONORS ACTIVITIES: Autres programmes et activités Identify and describe the link, if any, between the proposed intervention and the activities and programmes of national/regional authorities and other sources of external assistance in the same sector. What is the added value or complementarities with the intervention requested? It is widely accepted that the private sector needs to become more engaged in developing the solutions to designing, financing and maintaining important infrastructure development projects on the continent. The Ai Infrastructure Projects Summit was designed to facilitate this very process. Related programs to this request include the NEPAD Infrastructure Investment Facility (NIIF) and the ADB s IPPF programme administered by the African Development Bank. Others include the EC initiatives and support to Trade and Regional Integration, the PROINVEST Facility, EC Human Development Initiatives, TRINNEX, the EIB INFAC Facility and the EU/ACP Microfinance Framework Programme. EC s Support to Trade, Infrastructure Development & Regional Integration Initiatives: The project compliments the EC Development Intervention in the areas of Trade, Infrastructure Development & Regional Integration as an instrument for the promotion of sustainable economic development and poverty reduction. It also aims to support the gradual integration of the countries of the African economies into the global economy. PROINVEST: The proposal also compliments PROINVEST Facility to encourage Public Private Dialogue to enhance the enabling policy environment for investments leading to the facilitation of investments and inter-enterprise cooperation agreements and promote events in EU and African countries leading to increased inward flows of investment, technology, know-how and managerial skills to the African infrastructure investment sector. Human Development: The project also compliments the EC Human Development Initiatives in line with the DCI (Development Cooperation Instruments) within the context of Regional Integration. This will strengthen existing country and regional programmes by supporting knowledge-generating, policy developing, innovation-stimulating and capacity-building activities whilst enhancing global initiatives for direct action in African countries. EIB INFAC Facility: The project compliments the European Investment Bank (EIB) ACP Investment Facility to help create an enabling environment within the ACP region for investments in infrastructure development. EU/ACP Microfinance Framework Programme : The project also compliments the microfinance programme by building and strengthening the capacity of investment institutions to support the growth and development of social infrastructure in the ACP countries. The proposal will look at options to facilitate microfinance investments in infrastructure investments in rural areas and the urban poor. This will encourage the introduction of policies and legislation targeted at encouraging social microfinance investments. Page 10 of 17

11 OVI AND SOURCES OF VERIFICATION : Indicateurs vérifiables et sources What is the quantifiable evidence of the results? Project objective(s) / Objectif global Project purpose / Objectif spécifique Results / Résultats Global Objective: The project has its purpose to assist in improving legislation, institutional set up and financial measures relating to the enabling business environment for infrastructure investments and development Specific Objective: Develop legislation, institutional and financial measures promoting private sector funding in infrastructure investments. Results: i. Relevant, applicable recommendations and diagnostic study of the industry ii. Recommendations for policy & legislative framework for investments iii. Improved innovative financial investments for infrastructure development Objectively Verifiable Indicators (OVI) Indicateurs objectivement vérifiables (IOV) Growth of private sector finance, specifically indigenous project investors in infrastructure investments More favourable business climate for private sector investments in infrastructure development; Increased private sector finance in the sector. i. Implementation of recommendations by regional Governments; ii. Macro-economic and legal regulatory reforms formulated; iii. Public private sector dialogue; iv. Relevant and timely investment of EIB & other donor funds in the sector. Sources National investment promotion centre reports NEPAD & ADB financial sector investment reports EIB ACP Division investment portfolio reports World Bank Doing Business report; ADB annual investment reports i. Legislation ii. PRSP Documents, etc. iii. Policy documents iv. Assessment by political observers and stakeholders v. Public-private participation in seminars & investment conferences Page 11 of 17

12 ACTIVITIES : Activités What are we / they planning to do? If any workshop/seminar, please indicate the number and type of participants expected Si un atelier/séminaire est organise, merci d indiquer le nombre et le type de participants attendus 1. ACTIVITY 1: Infrastructure Regulatory & Financial Investment Study A study to prepare initiatives related to policy & legislative reforms for implementation of international best practises for private sector investments in infrastructure in the region The experts would be expected to define relevant targeted infrastructure sectors, needs and required levels of private investments. The activity would take the form of a feasibility study to identify related activities which would lead to a roadmap for the development of regulatory and policy proposals leading to innovative financial initiatives for infrastructure investment in the African region. Other aspects of the Study will focus on the component aspects of the Economic Partnership Agreement and how it can used as an Investment Promotion tool in Infrastructure development. 2. ACTIVITY 2: Identification and Selection of Summit Participants Based on the recommendations from the study, the experts would contact selected infrastructure investors in Europe and Africa to discuss potential interest in infrastructure investments. This activity would also include the identification and selection of potential Partners and Infrastructure Development Stakeholders to participate in the Summit. This would bring together Regional Infrastructure Stakeholders to discuss the outcome of the Study and to make recommendations for implementation. Private Sector Participants Europe who would be invited to Participate would have the requisite capabilities, experience and finances to establish jointventures with counterparts from the African region. It is also expected that around 40 Participants representing Venture Capital Intermediaries, SME Representatives including 20 Participants selected from Regulatory Agencies, Financial Sector Representatives, Divestiture Committees and Governments Policy Making Ministries from across the Region would be sponsored to participate in the Summit. 3. ACTIVITY 3: Ai Infrastructure Project Summit Dialogue The 2-day Ai Infrastructure Projects Summit will take place in Johannesburg, South Africa, on November The event will bring together investment infrastructure stakeholders, African project developers, European companies and policy makers to dialogue on innovative PPP initiatives and also to network and initiate partnerships amongst themselves. 4. ACTIVITY 4: Preparation and dissemination of a report The expert will be required to prepare an extensive report of the achievements during the Summit and the way forward and to disseminate it. Page 12 of 17

13 Inputs: Inputs Indicate the required working days per expert, travel and per diem Indiquer la répartition des jours de travail par experts, les voyages et les per diem Workload Expert 1 Cat. I Total expertise Intern. Travel Regional Travel 1. Infrastructure Regulatory & Financial Investment Study 2. Identification and Selection of Summit Participants: 3. Ai Summit PPP Infrastructure Investment Dialogue Preparation of the report TOTAL Page 13 of 17

14 BUDGET BUDGET : What resources will be required for the planned activity (manpower, materials, timing etc)? Who will implement them? Title Unit Quant. Unit price 1. Study & contribution to a 2-day regional workshop (60 participants) Total Sub-total by contract Implementation modalities (euros) (euros) (euros) Service contract - Fees Expert 1 m/days Per diem Expert Nights International Travel Expert Return Regional Travel Expert Return Folders & writing materials Follow up & coordination Fees contractor/ conference organiser (includes backstopping) - Reimbursables A. International Travel Return B. Inter-Regional travels Return % contingency international travel C. Per diem (average 4 nights ) Nights I. Cocktail (closure) Per person J. Visibility (Media, PR, Brochures, Proceedings ) - K. Information Kit, Badges & Preparation - L. Other (insurances, host/hostesses, moderators, local transport, inter-city transport, invitations, etc) Lump sum Per kit Lump sum Total without contingencies OK Contingencies (3%) TOTAL N.B. Provisions for Air tickets and per diem are made for 60 participants maximum Page 14 of 17

15 IMPLEMENTATION PLAN TIMETABLE (Main Deadlines in calendar weeks or months) Activity Activité Month Mois ACTIVITY 1: Infrastructure Regulatory & Financial Investment Study X X ACTIVITY 2: Identification and Selection of Summit Participants X X ACTIVITY 3: Ai Infrastructure Project Summit Dialogue X ACTIVITY 4: Preparation & dissemination of report X X IMPLEMENTATION MODALITIES: Number and types of contracts foreseen 1 service contract for implementing the study and contributing to the workshop ASSUMPTIONS : Hypothèses What external variables could prevent the activity going ahead on time and/or if it does go ahead as planned, what external variables could stop a successful outcome (the result)? The success of the project relies upon: A good collaboration between the selected Project Consultant and the beneficiary It also depends on the willingness of Regional Governments to finance Personnel to participate in the Event. Considering that costs of travelling and accommodation would be subsidised the risk of non-participation is minimal. Page 15 of 17

16 ADDITIONAL COMMENTS FROM THE APPLICANT: Commentaires et remarques The financing of Africa s $140bn infrastructure backlog requires not only a massive infusion of private and public capital but an engaged private sector working with policymakers to address bottlenecks holding back viable infrastructure projects. The Projects Summit is a unique pan African forum convening all the critical stakeholders involved in infrastructure development policy and project implementation. Page 16 of 17

17 DECISION OF THE VALIDATION COMMITTEE Implementation approved 04/07/2008 Comments and remarks from the Validation Committee None Implementation rejected Reason(s) for rejection Name-Position EC/AIDCO/C4 Signature Date Name-Position DG/DEV Signature Date Name-Position ACP SECRETARIAT Signature Date Name-Position ACP SECRETARIAT Signature Date Page 17 of 17