Partnership around NEPAD

 Multilateral Organizations

Infrastructure

Regarding cross-border infrastructure and other projects with significant regional impact, the major constraint, namely the capacity of the secretariats of Regional Economic Communities is being addressed. The African Capacity Building Foundation (ACBF) is conducting capacity building needs assessments for all RECs. This includes determination of funding required to implement recommendations. Already, the Economic Community of Central African States (ECCAS) Secretariat has received support to enhance its capacity for implementation of NEPAD in the Central Africa region. Another breakthrough is the commitment made by the G8 and the Organization for Economic Co-operation and Development (OECD) countries at the April 2005 Africa Partnership Forum (APF) meeting to increase focus on infrastructure development.

In the past five years the African Development Bank (ADB) and the World Bank have increased priority to projects under the NEPAD Short Term Action Plan for Infrastructure Development. Major projects financed include the West Africa Gas Pipeline, electricity inter-connectors in West and Southern Africa and a number of feasibility studies. The amount committed to NEPAD infrastructure projects including those in the pipeline is in excess of US$3billion. Canada, France and Japan have been the main sponsors of project preparation for infrastructure projects in energy, transport and ICT. The amounts contributed to NEPAD Infrastructure Project Preparation facilities hosted by the African Development Bank and the Development Bank of Southern Africa is close to US$13 million. Through the NEPAD Short Term Action Plan (STAP), an increasing number of regional infrastructure projects have been successfully brought to financial closure and thus reached the implementation stage. During 2002-2005, twenty five STAP initiatives consisting of thirteen physical investment projects, eleven studies, and one capacity building program for a total commitment value of US$ 2.2 billion were financed by ADB, World Bank and other partners. Additional regional initiatives, for a total commitment value of about USD 1 billion, are receiving consideration for funding in 2006 by the ADB Group and the World Bank Group.

The European Union Commission has established the European Union Water Facility of €500 million. The first payment of €250 million was announced in 2005. Proposals received from African countries have been evaluated and prioritized by the EU Commission for support. Arrangements are under way for the announcement of the second payment of €250 million and there are presently calls for proposals for support. In addition, the European Union Commission has earmarked US$ 10 million for preparation of action plans for integrated development of 5 priority river basins in Africa -, Volta, Niger, Lake Chad, Lake Victoria, and Senqu/Orange. The EU Commission has allocated a further €8 million under the European Water Facility for support in additional river basins. The ADB has provided support to 7 river basins in which action plans have been developed viz. Senegal, Niger, Lake Chad, Nile, Congo, Zambezi and Okavango river basins. Furthermore, the Africa Water Facility (AWF) has been established at the ADB and development partners have already committed US$75 million. The fund is expected to grow to US$600 by 2007.

The NEPAD Heads of State and Government Implementation Committee (HSGIC) has resolved to study options for investing African Pension Funds in selected high priority infrastructure projects. Initial work has been undertaken towards the operationalization of the Pan-African Infrastructure Development Fund, which is aimed at creating a platform for basic infrastructure for accelerating growth for sustainable development in Africa. Under the leadership of South Africa and Nigeria a Steering Committee supported by a secretariat has been established to lead the establishment of the Fund. The Fund will initially focus on infrastructure sectors: Transportation (Roads, Rail, Ports, and Airports), Telecoms, Water and Energy (Gas and Electricity). Target size of the fund will be an initial US$ 1 billion with final fund size to be in the region of US$ 3 billion. The initial targeted investors are public sector pension funds on the African continent. South Africa and Nigeria are each to secure commitments of $250 million from their pension funds to enable an initial commitment of $500 million. Efforts are underway to attract other African countries to contribute to the first closing of the Fund.

Another welcome development is the successful replenishment of the International Development Association (IDA) and the African Development Fund (ADF) soft loan / grant windows of the World Bank and ADB, respectively. The additional resources should enable the two institutions to increase development support to Africa.

ICT

The top NEPAD priorities in ICT, which have reached an advanced stage of preparation and implementation, are the e-schools project and the provision of a fiber-optic submarine cable on the East Coast of Africa. The e-schools project is a very bold endeavor. NEPAD is working primarily with the private sector to develop a strategy for enabling all African schools to have access to ICT within ten years. Pilot e-School projects involving 96 schools in 16 African countries are being launched in Uganda, Ghana, Lesotho, and Kenya.

The estimated cost of the fiber-optic submarine cable on the East Coast is US$200 million and commitments have been made by the African Telecom Utilities and private corporations to raise at least 50% of the capital required. The World Bank Group has been approached for the balance. This is an excellent example of public-private partnership.

Furthermore, NEPAD is promoting the development of a framework for e-governance, which will include the public service sector, election commissions and local government. The first phase of the project is focused on e-parliament, which will enable African parliamentarians to easily source and share information relevant to their legislative and oversight role.

President Wade of Senegal has been leading the Digital Solidarity Fund initiative for the last three years. The Fund was launched in Geneva on March 14 2005. The funds raised will be used to extend ICT services to rural areas.