Transcript India’s partnership with Africa

Development Partnership Administration
Ministry of External Affairs
India & Africa
Partners in Development
Capacity Building Programmes & Lines of Credit
India’s Partnership with Africa

India’s partnership with Africa goes back to the early 20th
century when we were fighting colonialism and apartheid.

In the modern era, we have evolved a model of cooperation,
which is consultative, responsive and based on our
respective development experiences and perspectives.

India’s involvement in capacity building in Africa dates from
the 1960’s through our ITEC programme and other facilities
for experience sharing.

Over the past 10 years in particular, there has been a
significant intensification of our engagement in economic
development, institutional cooperation
and capacity
building.
India-Africa Forum Summits

The India-Africa Forum Summits have imparted a new vigour
to our partnership with African countries.

Two Summits have been held so far: in April 2008 in New
Delhi and in May 2011 in Addis Ababa

These Summits have laid the foundation of a new architecture
for a structured interaction and cooperation between India
and our African partners in the 21st century

The IAFS process promotes a unique engagement at three
levels – the continental, the regional and the bilateral
Institutional engagement
In implementation of the IAFS decision, conferences and workshops
organized include:

Crafts Skill Development Workshop for Women

Special Session on Global Commons & Challenges

Science & Technology Ministers’ Conference

Training programme for Secretary Generals of African Chambers of
Commerce

India-Africa Trade Ministers Conference

First Meeting of India Africa Business Council

Annual CII EXIM Bank Conclaves
Capacity building
 Under the ITEC [Indian Technical & Economic
Cooperation] programme, short- and mediumterm courses are offered in various Indian
institutions, covering subjects like Accounts,
Audit, Banking, Finance & Management, IT,
Telecommunication, SME/Rural Development,
Environment and Renewable Energy
 Specialized Courses are also offered in in
Parliamentary
Procedures,
Election
Management, Mass Communication, Remote
Sensing, etc
Capacity building contd…….
 Indian experts are deputed to African countries (as
per request) to advise host governments or their
institutions in specific economic or developmental
areas
 Indian Army Training Teams deputed to a number
of African countries on specific requests.
 Training slots offered to African countries in
premier Indian defence institutions, including in
NDC and DSSC. During 2012-13, 244 army, 115 naval
and 76 air force training slots offered to Africa.
Utilisation of ITEC Programmes
In Africa
Year
Seats allocated
Seats utilised
2008-09
1719
1316
2009-10
1704
1492
2010-11
1857
1743
2011-12
3207
2293
2012-13
3334
2800 (till
13/03/13)
Multilateral ITEC training courses
In Africa
AARDO
African Union
2012-13 2011-12 2010-11 2009-10 2008-09 2007-08
70
70
55
55
55
50
30
30
13
13
13
10
Pan African Parliament
10
20
5
5
5
3
UNECA (UN Eco. Com.
For Africa), Addis Ababa
30
30
15
15
15
10
East African Community
15
25
10
10
10
10
Total
155
175
98
98
98
83
Scholarships & Fellowships
ICCR Scholarships at Indian Universities
Year
Seats allocated
Seats utilised
2009-10
532
238
2010-11
532
207
2011-12
532
207
2012-13
900 (scholarship
includes airfares)
Admission process
is underway
Special agricultural scholarships (75 per year): 71 and 85 utilised in
2010-11 and 2011-12. 102 applications under process for 2012-13.
C.V. Raman Scientific Fellowships (104 per year): 85 and 79 utilised
in 2010-11 and 2011-12.
Special training courses (500 per year): 449 and 929 utilised in 201011 and 2011-12.
Capacity building institutions
As per decisions taken at the India-Africa Forum Summits,
India has committed to establishing about 100 capacitybuilding institutions to build and strengthen capacities at the
pan-African, regional and bilateral levels. An indicative list of
the institutions is below:
 India-Africa Institute of Information Technology
 India-Africa Institute of Foreign Trade
 India-Africa Institute of Education Planning and
Administration
 India-Africa Diamond Institute
 India-Africa Civil Aviation Academy
 India-Africa Institute of Agriculture and Rural
Development
 India-Africa University for Life and Earth Sciences
Capacity building institutions
contd……..
We have also launched an initiative of
establishing
and
strengthening
common
infrastructure and facilities for pan-African
development of some key industry sectors.
Examples are:
 India-Africa Food Processing Cluster
 India-Africa Textile Cluster
India-Africa Trade Promotion
21 out of 34 African LDCs have acceded to the India-Africa Duty Free
Tariff Preference (DFTP) Scheme.
India-Africa trade has seen significant growth over the last 8 years :
In US Dollars billion
Year
Exports
Imports
Total
2005-06
7.00
4.80
11.80
2006-07
10.26
17.72
27.98
2007-08
14.19
20.47
34.66
2008-09
14.82
24.73
39.55
2009-10
13.43
25.61
39.04
2010-11
20.85
31.95
52.80
2011-12
24.67
43.06
67.73
Apr-Dec 2012
21.13
31.59
52.72
Lines of Credit
 Lines of Credit [LoCs] have been an increasingly significant part of
India-Africa development cooperation since 2003-04.
 They are concessional loans intended to set up infrastructure projects
and to share Indian experience in developmental initiatives .
 LoCs have financed a wide range of projects in agriculture, irrigation,
food processing, rural electrification, IT and infrastructure [roads,
railways, cement, power, etc].
 The objective is to create durable assets and build sustainable
institutions.
 At IAFS-I & II, we have committed to a quantum jump in the targets of
LoCs in the coming years.
Year-wise approvals and disbursements of LoCs
[as on February 28, 2013]
In US Dollar millions
Year
Africa
Asia
Approval Disbursed Approval Disbursed
Grand Total
Approval Disbursed
2002-03
10.00
-
200.00
-
210.00
0.00
2003-04
100.00
-
115.36
-
215.36
0.00
2004-05
99.87
49.90
150.00
2.80
284.87
57.94
2005-06
1,037.6
97.52
120.00
158.42
1,238.00
284.71
2006-07
141.50
234.72
292.34
118.90
443.44
371.07
2007-08
524.50
338.50
166.77
38.11
712.26
395.05
2008-09
470.10
288.00
120.00
69.72
650.00
399.04
2009-10
486.50
352.66
1,403.79
35.70
1,900.05
404.91
2010-11
1,055.07
398.95
759.92
213.12
1,814.99
620.25
2011-12
1,206.28
2012-13
Total
422.38
5,553.80
436.76
373.92
2,570.94
100.00
355.96
3,784.14
270.06
350.05
1,256.89
1,330.28
801.05
9,600.30
720.28
761.34
4,014.60
Project selection
 Development priorities of the partner country
 Assessment of India’s strengths
 Bilateral consultations, through the diplomatic
missions in the respective countries to identify sectors
and projects
 Thorough assessment of project feasibility
 If procurement for a project, a credible timetable to
ensure the supplies integrate with the project of which
the procurement is a part
Procedural Requirements
 A project report, with detailed project description,
technical feasibility, environmental impact assessment,
schedule
of
implementation,
financial
appraisal,
breakdown of cost estimates etc.
 LoC terms - interest rates, moratorium period and tenor -
depend on World Bank classification of the country
 Relaxation in terms are made on a case-by-case basis,
depending on requirements.
 The project is to be implemented by Indian entities
Procedural Requirements contd…...
 Goods and services for minimum 75% value of the LoC
contracts are to be sourced from India (with a provision for
some relaxation, particularly where extensive civil works are
involved)
 For complex projects, Project Management Consultant is
essential to assist in preparation of DPR, floating tenders,
selecting contractors and monitoring project implementation.
PMC contract can be covered in the LoC with GoI’s
concurrence
 African governments would follow their rules and procedures
for selection of contractors and award of contracts, but they
are expected to be transparent and fair, using open
competitive bidding
Steps in identification & implementation of LoC projects
 A comprehensive project report sent to GoI through
Indian Embassy/High Commission.
 GoI conveys approval for LoC after appraising the
project.
 EXIM Bank sends a draft LoC agreement to be
signed by the African Government or its authorized
agency/department.
 PMC (for complex projects) selected first and then
contractor – both by open, competitive bidding.
Participation limited to Indian companies;
Steps in identification & implementation of LoC projects
 Contract sent to EXIM Bank, which approves after
verifying fulfillment of all procedures
 Implementing agency’s bank opens Letter of Credit
(L/C) in favour of the contractor.
 EXIM Bank pays contractor directly on completion
of each project milestone [as certified by the host
country] and debits the amount to the LoC account
of the host Government.
 Host Government certifies completion of the project
to Indian Embassy/High Commission
Further fine-tuning
 Better information dissemination on capacity
building programmes
 Dialogue on IAFS institutions so that they
meet host country expectations
 Professionally prepared techno-economic
feasibility studies: India can offer assistance
for this
 Transparent selection procedures for
consultants and contractors
Further fine-tuning
 Contracts should enforce strict quality
standards and penalties for delays
 Synchronization in projects with multiple
sources of funding and supplies
 Robust mechanisms for monitoring project
implementation
 Issues relating to LoC terms and conditions