Transcript Document

Developing the Energy Sector in Africa
Private Sector involvement
Danida development Days
June 2009
Youssef Arfaoui 2009
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Outline:
1. Energy Highlights from Africa
2. Infrastructure Investment in Africa
3. Way forward & Conclusion
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Africa’s Energy resource Potential
Energy resources
Crude Oil
Potential
Moderate
Environmental Impact/climate change
Has an impact on environment
Natural Gas
high
Friendly
Hard coal
high
Has impact on environment
Hydro Electric
Very high
Friendly
Geothermal
high
Friendly
Wind
high
Friendly
Solar
Very high
Friendly
Cogen
Moderate
Friendly
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Africa’s Energy resources
Energy production in Africa is around 9,5% of the world output; but consumes
…. only 3%.
Energy resources
Percentage
Comments
%
Crude Oil
12.1
Natural Gas Out
6,6
Hard coal
4,7
Hydro Electric
3,1
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Of the world Crude oil Production
of the world’s hard coal
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Highlights Energy supply Africa
High Need for Investment in the sector
Description
Generation Capacity
current economic
growth rates
Access to electricity
in 2005
Figures
66 GW
Comments
if South Africa were excluded, falls
to 28GW in total for over 45
countries Coverage Less than
Poland
5% per year
Just to sustain this growth level
would require annual expansion
in generation capacity of 4GW,
whereas at present barely 1GW
is being added
24%
of the population of
SSA
compared to close to 54% in
South Asia and close to 90% in
East Asia, the Middle East and
Latin America
African countries contribute around 5% of GHG global emissions.
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Indicative List of Regional Projects
Project
Project Cost
USD,million
Construction of the HP.plants of
Sambangalou and Kaleta,
Interconnection Line – Grid connection
620
BOALI 3 power project and interconnection
with DRC
Participating countries
Comment
Senegal, Gambia, Guinea
Bissau
Ready for investment
23.00
CAR, DRC
Under Preparation .
Interconnection Ivory Coast-LiberiaSenegal-Guinea
300.00
Ivory Coast-LiberiaSenegal-Guinea
Study ongoing
Interconnection Ghana-Burkina-Mali
350.00
Ghana-Burkina-Mali
Study ongoing.
Interconnection Ethiopia - Kenya
1000.00
Ethiopia - Kenya
Study ongoing.
Interconnection Zambia-Tanzania - Kenya
1000.00
Zambia-Tanzania - Kenya
Study ongoing.
Interconnection of CEEAC Countries
300.00
CEEAC Countries
Study ongoing.
Souapiti Hydropower Plant
1200.00
Guinea - Liberria- Serra
Leone
Study ongoing..
Interconnection Guinea -Mali
300.00
Guinea -Mali
Study ongoing.
S/TOTAL
5093.00
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Indicative List of National Projects
Country
Project
Capacity (MW)
Zambia
Itezhi-Tezhi
120
Zambia
Kafue Gorge Lower
600
Zambia
Kariba North Bank Ext.
350
Zimbabwe
Kariba South Bank Ext
300
DRC
Inga III
3500
DRC
Grand Inga
39000
Malawi
Kaphichira phase II
64
Mozambique
HCB North Bank
850
Ethiopia
Gibe III
1800
Multinational
OMVG Energy Program
250
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Clean Energy Investments
Technology Capacity Investment Comments
MW
KUS$
Biofuel
NA
242
Currently on hold
Cogen
410
649
Identified by the Cogen program
Geothermal
600
1360
studies are still to be done
Hydro
283
385
includes small hydro only
Solar (CSP)
200
560
Identified but excl. MENA program
1860
identified but excl. Morocco &
South Africa
Wind
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921
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Operational Results
(Achievement)
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The Eskom project is the bank’s largest non-sovereign loan
Southern Africa
• Investment USD 30 B
• ADB loan USD 500 M
ADB roles
• Long-term lender
• Regional partner
Benefits
• 100% power access
• Jobs, growth
• Regional expansion
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The Pan-African Infrastructure Development Fund (PAIDF)
is one of the largest infrastructure equity funds in Africa
Pan-African
• Investment USD 650 M
• ADB equity USD 50 M
ADB roles
– Regional sponsor
– Fund mobilization
Benefits
– Regional infrastructure
– African pension funds
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The 250MW Bujagali Hydroelectric Power Project, a catalyst
for Power Sector Reform
Uganda
• Project Cost USD 736 M
• ADB loan USD 110 M
ADB roles
– Project Structuring
– Long-term Lender
Benefits
– Independent power project (IPP)
– Expand the supply for electricity
– Reduce generation cost
– Long-term socio economic
benefits
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The 15MW Sahanivotry Small Hydroelectric Power Project, a
catalyst for Power Sector in Madagascar
Madagascar
• Project Cost USD 13 M
• ADB loan USD 6 M
ADB roles
– Project Structuring
– Long-term Lender
Benefits
– Independent power project (IPP)
– Expand the supply for electricity
– Reduce generation cost
– Long-term socio economic
benefits
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Although …….
Africa is mostly affected by the various Crisis:
A. Energy Crisis
 Draughts ( Climatic change)
 Oil price fluctuation
B. Financial Crisis:
 Revenue Drop
 Foreign Direct Investments reduced
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Way forward
Africa needs to continue it investments programs in particular
in the Energy sector:
 New Credit facility put in place by the AfDB
 AfDB Capital increase to be supported
 Assistance to Low Income Countries (LIC) with concessional
resources (ADF)
 Support Private Sector investments in Africa
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Africa Commission’s energy initiative
implementation structure
Donors
Technical assistance from The donor
Implementing Agency
AfDB
Executing Agencies
(Option.1)
1. AFREPREN – Kenya
2. GTIEA- East African
Tea Trade Association
The project pipeline is
available and Studies are
done
 Capacity building
 Policy development
 Strategy development
Etc…
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Executing Agency
(Option.2)
The Bank Departments
(OPSM and Public sector )
Access direct to the Funds
through FAPA
Grant and seed Capital
Project developers /
Project sponsor
Country Offices participation
Executing Agency
Financial institutions
 Line of credit from the AfDB
a. Project financing
b. Assist the sponsor to develop
the project
Project sponsor
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In Summary
• Opportunity for lucrative investment in Africa
expanding rapidly.
• Investment climate improving, but remains challenging
with region and sector specific knowledge critical.
• The Infrastructure Finance Team is a partner that
provides the key expertise required to facilitate
investors/project sponsors achieve business success
in Africa whilst harnessing sustainable development.
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THANK YOU
Sidi Salem hydro-electric,Tunisia – Photo –Youssef Arfaoui
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