1 pida in the energy sector afdb/auc workshop 17th updea congress tunisia, 29 may 2012...
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PIDA: Africa’s Time for Action
PIDA in the Energy SectorAfDB/AUC Workshop
17th UPDEA CongressTunisia, 29 May 2012
Interconnecting, Integrating, and Transforming a Continent
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WHAT PIDA IS? -Definition
PIDA is a program dedicated to facilitating continental integration, socioeconomic development and trade, through improved regional infrastructure
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WHAT PIDA IS? -Objectives and Outputs
A Strategic Framework for
2040
Implementation strategy & process
Outputs Objectives
Infrastructure Development
Programme (2040)
• Vision on Africa’s infrastructure• Strategic objectives• Sector policies
• Regional and continental physical infrastructure projects• Priority projects and measures• Phases: Short term (2012-2020), Medium term (2020-2030) and Long term (2030-2040)
• Rolling plan of priority actions• Financing• Monitoring & Evaluation process
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PIDA PROCESS: Study Phases
•Phase I : Diagnostic, analytical work and projections
•Phase II : Formulation of Sector Policies and Infrastructure Development Plan
Phase III : Synthesis and Recommendations
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DIAGNOSIS OF EXISTING
SITUATION
OUTLOOK 2040
STRATEGIC FRAMEWORK
PIDA 2040
Vision from the AUC 2004 Strategic Plan :
Build an integrated, prosperous and peaceful Africa, driven by its citizens and representing a dynamic force in the International Arena
+ + =
PIDA PROCESS
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Developing major regional and continental
hydroelectric projects
Implementing high-capacity oil refineries and
oil & gas pipeline projects
Developing renewable energy resources
Energy: develop efficient, reliable, cost-effective, and environmentally friendly infrastructure; and, enhance access to modern energy services
PIDA OUTCOMES: Findings per sector
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PIDA’s Priority Action Program: establishing priorities
RECS MASTER PLANSOTHER
EXISTING PROJECTS
SELECTION CRITERIA
Agreed between PIDA Stakeholders
PIDA PAP
(1) eligibility and regional integration; (2) feasibility and readiness; (3) development impacts
PIDA OUTCOMES: The PAP
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24 transport
15 energy
9 TWR
3 ICT
PIDA PAP broken down into 51 projects/programs
PIDA OUTCOMES: The PAP
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PAP Investment Cost: $68 bn - 2012-20
• BY SECTOR • BY REGION
PIDA OUTCOMES: The PAP
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Generation & Transmission: 2020&2040
The energy infrastructure program focuses on major hydroelectric projects and interconnects the power pools to meet the forecast increase in demand. One regional petroleum products pipeline is also included.
PIDA OUTCOMES: The PAP
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PAP Investment ($68 bn)
• Less than 0.2% of 2011 GDP, or 1% of national budgets, or 5% of Investment budgets
AMBITIOUS BUT AFFORDABLE
• Mainly from domestic sources (50% in 2020 to 75% in 2040)
• Private sector, ICA members & emerging partners
RESOURCE MOBILIZATION
• Needs are estimated to 5 - 8% of total investment cost
PROJECT PREPARATION
PIDA OUTCOMES: The PAP
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Implementation Strategy & Process
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Financing will need to come mostly from domestic sources (public & private)
Domestic Bond Markets, inc. remittances
Sovereign Wealth Funds
Enabling environment for more private
participation
PUBLIC MIX PRIVATE
PIDA CHALLENGES
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Country role in PIDA implementation
Projects are implemented by countries on whose territory they are located and by their agencies (public or private)
• Countries are critical and efficient players • Implement “soft” components (harmonisation
of continental and regional policies) • Financing project preparation, capital
investment, operation and maintenance
PIDA CHALLENGES
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Acknowledging PIDA as the African-owned and African-led programme
Tackling soft governance issues necessary for true regional integration - harmonization, facilitation, monitoring, and evaluation
Keeping strong political commitment
Advocating for strong partnerships
CONCLUSIONShared responsibility
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CONCLUSION
Competitiveness would be established in niche markets and in a growing spectrum of mainstream activities, including agriculture and manufacturing.
Share of world trade would be at least double today's share of 2%
Up to 15 million new jobs would be created.
PIDA impacts
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Regional trade would be twice today’s share of continental GDP
Water resources and basins would be secured for future generations.
ICT bandwidth would handle demand swells by a factor of 20.
Expanded power trade would lower carbon emissions by 20%
CONCLUSIONPIDA impacts
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CONCLUSIONNext steps
1. Implement quick wins in the PIDA-PAP and prepare all projects for implementation
2. Support targeted capacity building for AUC, NPCA, RECs, Spec. Institutions & Agencies
3. Develop a resource mobilization strategy
4. Mobilize finance for project preparation
5. Monitor progress and report on delivery
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MERCIOBRIGADOTHANK YOU
شكرا