There was a high level of enthusiasm and commitment to support the implementation of key regional infrastructure projects, at a recent Business Forum in New York.

The NEPAD Agency in partnership with the UN Global Compact convened the meeting on Africa’s infrastructure development mainly around eight priority projects, to get the private sector to respond to the huge challenge of funding modern infrastructure.

Mr Adama Deen consulting with Dr Mayaki, Ola Makinwa of the UN Global Compact and Moderator of the Forum; Greg Kelly, Executive Director of the Global Compact and one of the panel speakers and Mr Shaka Kariuki Managing Director of Kuramo Capital Management

Through its multi-stakeholder alliance – PIDA which is short for  Programme for Infrastructure Development in Africa, NEPAD has outlined several mechanisms for mobilising these resources. They include deepening African owned private equity funds and bond markets; Diaspora bonds; use of sovereign backed pension funds; and through public-private partnership financing models.

Head of Infrastructure at NEPAD, Adama Deen said that PIDA has two investment envelopes. One is short term, for 2020 priced at US$68 Billion and a long term investment plan of US$360 Billion.

Said Mr Deen:  “The assumption is that by 2040 the African economy will grow by 6.2 per cent. In terms of trade, we are saying that by 2040 there will be 3.6 Billion tons of trade volume in Africa. Currently there is only about half a billion tons of trade taking place in Africa. That should take us to a US$10 000 parity on average in Africa by 2040.”

NEPAD Chief Executive Officer Dr Ibrahim Mayaki stated that the biggest challenge regarding investment in Africa’s regional projects was not necessarily lack of funding, but rather the absence of bankable projects, so the issue of project preparation is absolutely essential.

Dr Mayaki said that with the renewed support of the Africa Development Bank and UN Economic Commission for Africa, NEPAD has defined a long term strategy with a pipeline of about 400 projects and with 150 segments being targeted. He said the selected eight projects discussed in New York were part of that segment, which is to be implemented in the next 3 years.

The business sector was well represented. Mr Mohammed Ahmed, Senior Manager at Deloitte Financial Advisory Service shared four key principles in the governance of regional infrastructure projects: Assessing Risk; Accountability; Monitoring and Evaluation and Independent Oversight.

Mr Ahmed told the meeting that identifying risk in areas such as corruption, the environment, instability, and in objective business practise.  helps from a governance perspective to be more proactive as opposed to being reactive. The idea is to establishing where the challenges might be ahead.

Mr Ahmed and Dr Mustapha Mekideche of the ARPM Panel of Eminent Persons. Dr Mekideche, who has an engineering background, also made a profound presentation on key aspects of Africa’s Infrastructure.

On Accountability he said that this aspects within the individuals that are involved in the projects to the different companies and firms important, citing a written framework, documenting policies, expectations, procedures and goals as key elements of accountability.

“On monitoring and evaluation- certainly a key area is having an independent body constantly monitoring costs, projects plans etc. Having periodic audits to verify that what is being reported is actually accurate. The key there is to having groups of individuals that are independent to conduct audits. Another option is having some element of having a whistle- blower hotline,” said Mr Ahmed.

On Independent Oversight, he advised the Forum on the benefits of having a governance group such as a committee or a board with oversight on monitoring and evaluation, and critically analysing accountability, audit reports and other aspects.

The eight selected projects are

-           Ruzizi III Hydropower projects (East and Central Africa)

-           Dar es Salaam Port expansion in (East Africa)

-           Nigeria-Algeria Gas pipeline (West and North Africa)

-           Modernising the Dakar- Bamako Rail line (West Africa)

-           Abidjan –Lagos central corridor (West Africa

-           Zambia- Tanzania-Kenya transmission line (East and southern Africa)

-           Lusaka – Lilongwe ICT Terrestrial  Fibre Optic (Southern Africa)

-           Sambangalou Hydropower project (West Africa)

The infrastructure funding deficit is estimated at US$ 68 billion dollars in the short term between now and 2020. A Financing Summit in June, hosted by the Government of Senegal and in partnership with World Bank, Africa Development Bank, UN’s Development Programme and Economic Commission for Africa, brought together local and international private sector and African governments, to discuss investment for 16 key regional infrastructure projects in Africa. The Summit yielded the Dakar Agenda for Action (DAA).

As a follow up, a meeting of key stakeholders in Cape Town in November 2014, will discuss the 16 project preparation facilities, including the eight above, to come up with a concrete proposal for African governments can have a clear idea on how to interact with the business/private sector.

Pamla Gopaul of NEPAD (above) exchanges pleasantries with Jason Lamin from Sierra Leone, co-founder of the Linus Park LLC Company. He oversees all aspects due diligence for international firms. He briefed the Forum on important issues which the private sector take into consideration when investing in big projects.

The full details of the 8 Projects above can be viewed on Mr Adama Deen’s PowerPoint presentation which is available on the NEPAD website.