MOZ2013 MAPUTO Presentation By : Hussein Iman Chief Investment Officer South Africa Regional Resource Center African Development Bank.
Download ReportTranscript MOZ2013 MAPUTO Presentation By : Hussein Iman Chief Investment Officer South Africa Regional Resource Center African Development Bank.
Slide 1
MOZ2013
MAPUTO
Presentation By :
Hussein Iman
Chief Investment Officer
South Africa Regional Resource Center
African Development Bank
Slide 2
Who We are
• AfDB is the Pan-African Multilateral Development Bank
• Infrastructure Finance, Private Sector Development, and
Regional Integration are institutional top priorities
• AfDB leverages its AAA balance sheet to support the
economic development in its regional member countries
• AfDB has consistently been a major financier to the Extractive
Industry & Energy Sector in Africa
Slide 3
AfDB has 2 lending windows: Public and Private
AfDB’s lending operations
Public window
Recipient
Guarantee
Financial terms
Governments or
state owned enterprises
Private window
-
Privately owned enterprises
- “Financially strong”
government owned
enterprises
Sovereign
Non sovereign
Concessionary terms
Commercial terms
3
Slide 4
The AfDB finances projects in Oil &Gas & Coal Sectors to
promote availability of cleaner energy resources and
promote local value addition
• Upstream – Upstream gas infrastructure, Upstream
production for Indigenous entrepreneurs (oil/gas)
• Midstream – Gas Processing Plants, Pipelines (oil/gas),
Storage (oil/gas)
• Downstream – Refineries, Petrochemical/Fertilizer Plants,
LNG Plants
4
Slide 5
What the ADB is doing in the Mining Sector
• Increase the impact of Mining Sector in RMCs’ Social and Economic
development
• Build infrastructure support with highly integrated networks (Power, roads,
railways and ports)
• Monitoring and Enforcing Environmental compliance
Act as a :
Financier and invest our financial resources to pursue economic development
goals ahead of profit
Advisor and leverage our knowledge of sustainable development practices
Partner and help mobilise our public and private sector counterparts in solving
development issues
5
Slide 6
Lessons Learnt from the Bank’s intervention in the
extractive sector financing
• Local participation in is key to maximizing benefits from the
sector (public or private)
• Role of Development Financial Institutions – (Advisory,
financiers including infrastructure & monitoring )
• Local content development - SME business linkages
• Work force development - Education
• Enabling business environment - Legal and Regulatory
framework- African Legal Support Facility
• Strong Institutions – key to the realization of project benefits
( Environment, Finance, Mining & Mineral, Education etc.,)
6
Slide 7
The AfDB selects its financial instruments to meet
investee company’s needs
• Senior Debt – tenor and currency adapted to project needs;
debt arranging capacity:
– African Financing Partnership– DFI co-financing platform
– A-B Syndication Program– leveraging the AfDB Preferred Creditor
Status
• Guarantees – partial risk, partial credit
• Subordinated Debt
• Equity – direct, or indirect (equity funds)
• Technical Assistance
7
Slide 8
The AfDB strongly supports Local Content Development
• Policy Level– foster policy design, promulgation &
implementation
• Legal and Regulatory framework- African Legal Support
Facility
• Technical Assistance for capacity building
• Specific Local content programs- SME linkages programs,
LOC to financial institutions
8
Slide 9
Examples of selected projects
SASOL natural gas project
•
•
•
•
South Africa - Mozambique
Investment ZAR 8.5 bn
ADB loan ZAR 550 mn
ADB roles
– Long term debt
– Reduced cost of PRI
•
Benefits
–
–
–
–
•
Reduction of air pollution
Jobs
Social benefits
Regional integration
Capacity
– 856 KM
– 122 -183(MGJ/a) per annum
A public-private partnership between the GOSA, GOM and Sasol
Slide 10
Kenmare Resources – World Class
Moma Titanium
Minerals Mine in Mozambique
Asset
• One of the world’s largest known titanium minerals
deposits with >200 mt of contained ilmenite
»Phase I approx capacity:
-800 ktpa ilmenite, 50 ktpa zircon, 14 ktpa rutile
~7% OF GLOBAL FEEDSTOCK SUPPLY
•Phase II approx. capacity:
-1.2 mtpa ilmenite, 75 ktpa zircon, 21 ktpa rutile
~10% OF GLOBAL FEEDSTOCK SUPPLY
10
Slide 11
●
Mozambique
natural
• the
A pioneering
project in
partnership
between
gas project,
on stream
Sasol and the
Mozambique2004
and South
US$1,2bn project comprised:
African governments
› Pande and Temane field development;
› Central Process Facility (CPF) construction; and
› 26-inch Temane to Secunda 865km pipeline
● Equity in upstream:
Sasol 70% (Operator), CMH 25%, IFC 5%
● Equity in pipeline company:
Sasol Gas 50% (Operator), CMG (25%), iGAS (25%)
● Currently produces ~300 MMscf/d
Slide 12
Examples of selected projects
Nigeria Liquefied Natural Gas Project
•
•
•
•
Nigeria
Investment USD 2.1 bn
ADB loan USD 100 mn
ADB roles
– Political risk mitigation
– Complementary financing
– Advisor to local banks
• Benefits
– Reduce gas flaring
– adds value to a natural
resource
– Jobs
– Social benefits
•
Capacity
– Additional processing
capacity of 1.334 mscfd
Slide 13
Examples of selected projects
HASDRUBAL OIL AND GAS FIELD DEVELOPMENT PROJECT
•
•
•
•
Tunisia
Investment USD 1.3 bn
ADB loan USD 150 mn
ADB roles
–
–
–
–
•
•
Corporate Loan
Financier during difficult time
Advisor
ESMS
Benefits
–
–
–
Import substitution
Revenues to Government
foreign exchange earnings
–
Infrastructure development
Capacity
–
–
150 MCF/day
Onshore gas processing 16,000 b/d
of oil equivalent
During the financial crisis, the Bank played a countercyclical role
Slide 14
Examples of selected projects
EGYPTIAN REFINERY COMPANY PROJECT
•
•
•
Egypt
Investment USD 3.5 bn
ADB
–
–
•
ADB roles
–
–
•
•
Senior Loan USD 200 mn
Sub Loan USD 25 mn
Financier during difficult time
ESMS
Benefits
–
–
–
Import substitution
Revenues to Government
foreign exchange earnings
–
Infrastructure development
Capacity
–
152,500 barrels/day
During the financial crisis, the Bank played a countercyclical role
Slide 15
Thank you
Hussein IMAN
[email protected]
MOZ2013
MAPUTO
Presentation By :
Hussein Iman
Chief Investment Officer
South Africa Regional Resource Center
African Development Bank
Slide 2
Who We are
• AfDB is the Pan-African Multilateral Development Bank
• Infrastructure Finance, Private Sector Development, and
Regional Integration are institutional top priorities
• AfDB leverages its AAA balance sheet to support the
economic development in its regional member countries
• AfDB has consistently been a major financier to the Extractive
Industry & Energy Sector in Africa
Slide 3
AfDB has 2 lending windows: Public and Private
AfDB’s lending operations
Public window
Recipient
Guarantee
Financial terms
Governments or
state owned enterprises
Private window
-
Privately owned enterprises
- “Financially strong”
government owned
enterprises
Sovereign
Non sovereign
Concessionary terms
Commercial terms
3
Slide 4
The AfDB finances projects in Oil &Gas & Coal Sectors to
promote availability of cleaner energy resources and
promote local value addition
• Upstream – Upstream gas infrastructure, Upstream
production for Indigenous entrepreneurs (oil/gas)
• Midstream – Gas Processing Plants, Pipelines (oil/gas),
Storage (oil/gas)
• Downstream – Refineries, Petrochemical/Fertilizer Plants,
LNG Plants
4
Slide 5
What the ADB is doing in the Mining Sector
• Increase the impact of Mining Sector in RMCs’ Social and Economic
development
• Build infrastructure support with highly integrated networks (Power, roads,
railways and ports)
• Monitoring and Enforcing Environmental compliance
Act as a :
Financier and invest our financial resources to pursue economic development
goals ahead of profit
Advisor and leverage our knowledge of sustainable development practices
Partner and help mobilise our public and private sector counterparts in solving
development issues
5
Slide 6
Lessons Learnt from the Bank’s intervention in the
extractive sector financing
• Local participation in is key to maximizing benefits from the
sector (public or private)
• Role of Development Financial Institutions – (Advisory,
financiers including infrastructure & monitoring )
• Local content development - SME business linkages
• Work force development - Education
• Enabling business environment - Legal and Regulatory
framework- African Legal Support Facility
• Strong Institutions – key to the realization of project benefits
( Environment, Finance, Mining & Mineral, Education etc.,)
6
Slide 7
The AfDB selects its financial instruments to meet
investee company’s needs
• Senior Debt – tenor and currency adapted to project needs;
debt arranging capacity:
– African Financing Partnership– DFI co-financing platform
– A-B Syndication Program– leveraging the AfDB Preferred Creditor
Status
• Guarantees – partial risk, partial credit
• Subordinated Debt
• Equity – direct, or indirect (equity funds)
• Technical Assistance
7
Slide 8
The AfDB strongly supports Local Content Development
• Policy Level– foster policy design, promulgation &
implementation
• Legal and Regulatory framework- African Legal Support
Facility
• Technical Assistance for capacity building
• Specific Local content programs- SME linkages programs,
LOC to financial institutions
8
Slide 9
Examples of selected projects
SASOL natural gas project
•
•
•
•
South Africa - Mozambique
Investment ZAR 8.5 bn
ADB loan ZAR 550 mn
ADB roles
– Long term debt
– Reduced cost of PRI
•
Benefits
–
–
–
–
•
Reduction of air pollution
Jobs
Social benefits
Regional integration
Capacity
– 856 KM
– 122 -183(MGJ/a) per annum
A public-private partnership between the GOSA, GOM and Sasol
Slide 10
Kenmare Resources – World Class
Moma Titanium
Minerals Mine in Mozambique
Asset
• One of the world’s largest known titanium minerals
deposits with >200 mt of contained ilmenite
»Phase I approx capacity:
-800 ktpa ilmenite, 50 ktpa zircon, 14 ktpa rutile
~7% OF GLOBAL FEEDSTOCK SUPPLY
•Phase II approx. capacity:
-1.2 mtpa ilmenite, 75 ktpa zircon, 21 ktpa rutile
~10% OF GLOBAL FEEDSTOCK SUPPLY
10
Slide 11
●
Mozambique
natural
• the
A pioneering
project in
partnership
between
gas project,
on stream
Sasol and the
Mozambique2004
and South
US$1,2bn project comprised:
African governments
› Pande and Temane field development;
› Central Process Facility (CPF) construction; and
› 26-inch Temane to Secunda 865km pipeline
● Equity in upstream:
Sasol 70% (Operator), CMH 25%, IFC 5%
● Equity in pipeline company:
Sasol Gas 50% (Operator), CMG (25%), iGAS (25%)
● Currently produces ~300 MMscf/d
Slide 12
Examples of selected projects
Nigeria Liquefied Natural Gas Project
•
•
•
•
Nigeria
Investment USD 2.1 bn
ADB loan USD 100 mn
ADB roles
– Political risk mitigation
– Complementary financing
– Advisor to local banks
• Benefits
– Reduce gas flaring
– adds value to a natural
resource
– Jobs
– Social benefits
•
Capacity
– Additional processing
capacity of 1.334 mscfd
Slide 13
Examples of selected projects
HASDRUBAL OIL AND GAS FIELD DEVELOPMENT PROJECT
•
•
•
•
Tunisia
Investment USD 1.3 bn
ADB loan USD 150 mn
ADB roles
–
–
–
–
•
•
Corporate Loan
Financier during difficult time
Advisor
ESMS
Benefits
–
–
–
Import substitution
Revenues to Government
foreign exchange earnings
–
Infrastructure development
Capacity
–
–
150 MCF/day
Onshore gas processing 16,000 b/d
of oil equivalent
During the financial crisis, the Bank played a countercyclical role
Slide 14
Examples of selected projects
EGYPTIAN REFINERY COMPANY PROJECT
•
•
•
Egypt
Investment USD 3.5 bn
ADB
–
–
•
ADB roles
–
–
•
•
Senior Loan USD 200 mn
Sub Loan USD 25 mn
Financier during difficult time
ESMS
Benefits
–
–
–
Import substitution
Revenues to Government
foreign exchange earnings
–
Infrastructure development
Capacity
–
152,500 barrels/day
During the financial crisis, the Bank played a countercyclical role
Slide 15
Thank you
Hussein IMAN
[email protected]