ethraa is a real estate, infrastructure and energy (reie) investment development & management...
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AGRODOR AFRICAAfrica Agro Development CorridorExecutive PresentationSept 2012
Ethraa is a real estate, infrastructure and energy (REIE) investment development & management firm specialized in concessiondesign for REIE projects. The approach is hybrid combination of investment structuring coupled with development managementexpertise. Ethraa operates through offices in London, Buenos Aires and Dubai.
Our Due Diligence review and Critical Success Factors (CSF) audit had been concluded in producing the self financed Agro DevelopmentCorridor(AGRODOR )model; which comprehensively constitute an added value solution for agriculture downstream and upstream sectors. Ethraa has the expertise to manage both burdens and ambitions associated with AGRODOR initiative, the approach is briefly defined as:
1. Developing an asset based sustainable investment concession structure in partnership with the government; which will reduce the contribution of Sovereign Client while enable the subscriptions of broader institutional investors and without Sovereign financial guarantee.
2. Structuring the Master Plan to generate viable economic cluster product, in synergy with both infrastructure requirement and urban planning.
3. Creating a governance platform of sustain feasibility, mitigate risks; and increase the added values, while initiating a synergy with the national development goals.
4. Building Human capacity with economically and socially balanced investment model.
AGRODOR model provides solutions for most of the obstacles identified by the world bank for efficient agriculture development..Ethraa will deploy credible expertise to design the AGRODOR investment concession structure based on the forthcoming presentation of AGRODOR Pilot and that will be tailored made for each country. AGRODOR is flexible model and can be implemented on fast track basis .
Acknowledgement
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RationaleApproximately 80% of all African depend directly or indirectly on agriculture for their livelihood. Agriculture provides 70% of Africa’s full time employment, one third of total GDP, and 40% of total export earning. Thus Africa’s overall economic performance is inextricably linked to the performance of its agriculture sector..
Africa ranks the lowest in the world in terms of yields-enhancing practice, mechanization, use of agro chemical and irrigated land. Also average only 125 grams of fertilizer per hectare compared to world average of 1020 gram per hectare, mechanization in reported figures equally dismal at 13 tractor per 100km square or arable land compared to world average 200 tractor per the same area..
There is enormous potential for agriculture growth in Africa, it has twelve times the land of India, which is self-sufficient in food production with twice as many people to feed...
It has been shown that each 1% increase in agriculture productivity in Africa reduces poverty by 0.6%..
Source: WB
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Some of Africa Agriculture Challenges & Characteristics
Over-reliance on primary agriculture . Barriers to access market due to poor infrastructure, market standards, limited products .. Limited public and private investment in R &D , rural infrastructure , healthcare and education.. Domestic agriculture policy constraint.. Very limited access to commodity market chain or global value chain.. Lack of know how to reconcile conservation, production and sustainable management.. Financing agriculture and rural development(Transportation & utilities infrastructure).. Commercialization via Cash cropping Community development and building capacity Develop agriculture based industries to create an added value Limited up to date yield-enhancing technologies and practices Lack of sustainable development and ecosystem
Source: WB
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Pillars of Agriculture Transformation in Africa
The challenges are know for some time, pillars of agriculture transformation in Africa:
1. Investment in rural infrastructure…2. Promotion of the use of yield-enhancing technologies…3. Privatization to enhance the competitiveness in agriculture input
markets…4. Creating an enabling environment…
These pillars are the basic parameters in developing GRODOR AFRICAInvestment concession structure.
Source: WB
Stat of Agro-World
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Railways & Transit
Agriculture Land Water Availability
Dense Forestry
The Land Grab
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AGRODOR Why
Development:The rising cost of Millennium Global Targets hinder the standards of wellbeing, whereas worldly the social financial measures are declining rather than climbing
Employment:The sharp rise of unemployment due to technology, economic contraction and austerity requires developing the manpowered Agro sectors and industries
Sustainability:The imbalance between development and urbanism creates shear stresses on governments to sustain the Urban Rural optimum equilibrium
Security:The Food Security and Agro Production is the worry of 21st century, with more than 15 mln hectares are currently utilized in global land grab, and increasing fast
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The Case
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Urban Overheating and Deterioration
Deterioration of Agro Production
By 2050; 70% of World Population are City Dwellers
Urban Migration
Opportunities
Urbanism
Aspiration
Solutionsto Upgrade Rural Areas
Infrastructure
Congestion
Inflation
Problems of Increased Urbanism
GOV Incubation
CSR Programs
Innovation
AGRODOR
AGRODOR How
Baselines: State Owned Arable Land Owners Agro Development Corporations (Holding & Operational) Transit Oriented Development (TOD) Comprehensive Socioeconomic Development Incentives and Facilities for Investments (FDIs & Local)
Components: Farming Models Agro Light Industries Agro Businesses Molecules Public Transit Systems Communications & Technology Grid Educational & Health Facilities Affordable Housing Models; if any Urban Businesses Incubation
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Farmers
Products
MarketFunds
Enterprising AGRODOR
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ConsumersOr Exchange
Local Transport& Delivery
Packing &Sort Processing
Farming& Production
Agro Infrastructure
Developing Leadership
Economy Diversification
Improving Wellness
Improving Environment
Improving Competitiveness
Agro Hub
Opportunities Consolidation
Regulatory Incentives
Sector Openness
Industry Evolution
Economical Sustainability
Rural Development (Concerns of Governments)
Agro Business Value Chain (Opportunities for Investments)
AGRODOR: “pro et contra”
Pros: Political Will that are interpreted in Executive Procedures Legislation Hospitality for Direct Foreign Investments Progressive and Upgradable Concession Structuring Public Awareness Plans and Programs Availability of Domestic Resources and Manpower
Cons: Complicated Legal Restrictions on Investments and Enterprising Complex Sociopolitical Fabrics and Unrest Acute Irrigation Resources Troubled Capacity Building Schemes
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AGRODOR Standard Hub
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Business Park &
Catalyst Plots
Railways Station
Freight HubMedium
Business
Small Business
Mixed Use
SmallRetail
Business
Railways Workshop
Planning, Activities and Design of the hubs vary and correlate to both business and
socioeconomic needs of farming productions and facilities
TransitIndustrial
RetailAcademic
HealthcareGovernmental
BusinessFinancialLogistics
etc..!
AGRODOR Standard Model
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Arable Land
Railways
Tolled Roads
ICT Network
Farm Land
Farm Land
Farm Land
Farm Land
Farm Land
Farm Land
Farm Land100,000 Acres
40,000 Hectares
40,000 Hectares100,000 Acres
Farm Land
Farm Land
Farm Land
AGRO
DO
R H
ub
AGRO
DO
R H
ub
AGRO
DO
R H
ub
AGRO
DO
R H
ub
AGRO
DO
R H
ub
100 km 100 km50 km 100 km 100 km 50 km
20
km
500 km
AGRODOR Packages
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Cost of Green Land (Excluding Irrigation)
Railways; Alignment, Signaling & Rolling
Roads & ICT Grid
AGRODOR Hubs – 5 nos.
US$ 5,000,000
US$ TBA
US$ TBA
US$ 250,000,000
Annual Framing Production US$ 25,000,000,000
Annual Agro CAPEX & OPEX US$ 10,000,000,000
400,000 Hectares (1,000,000 Acres) Public or Private
Existing 40 villages (Each 6,000 Capita) 250,000 Capita
Development Corridor (10,000 km2 County) 500 kmTransit
Suburban
Agro Biz
These are general assumptions based on int’l rates
The Concession
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Ethraa Investment Development & Management
Award Mgmt
Negotiate
Award
Product
Concession Design Mgmt
Enabling Environment
PPP Initiative
Regulatory
Targets
AGRODOR Capital Partners
Minority Investors
(Syndicates, SIGs, Unions,..)
Development Agency
(Government Partner)
Sector Investors
X1, X2, X3, ..(Strategic Seed
Investors)
Operations
AGRODORThe Concession Company
AGRODOR Holding
Company
Special Purpose Vehicles (SPVs)
Infrastructure& Habitat FM &Town Management
Infrastructure Delivery
Real EstateDevelopment RE Developer
Land Bank
TransitOperations Roads & ICT Network Operations
Railways Supply & Operations
Agro Development Agro Utilities Operations
Farming Operations
Pre Concession Stage
Project Realization
Project Initiation
Product Validation
Award IDMA
Initial Statuary Consent
Concession Company
Investment & Development Management Plan1
2
3
Shareholders & Investors Management
Stakeholders & Regulatory Management
Post Concession Stage
Assets Development
Assets Management
Landlords &Plot Investors
End-Users
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5
Infrastructure Technical & Procurement Management
Property & Commercial Concessions Management
Investment & Development Management
17Executive Proposal and General Orientation
AGRODOR Examples:1. AGRODOR SS
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AGRODOR Hub
Marin Transit Hub
Arable Land for cash Crops
Transit Corridor
Transit Connection
River Transport
Road TransportWater Consuming Crops
Railways , Roads & ICT 1300 km
14 AGRODOR Hubs & 3 River Hubs
Farming 4,000,000 Acres
Rail Alignment with 5 Destinations
CSRs for National Coherence
Rural & Nomad Development
2. AGRODOR Ivory
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Railways & ICT 2,000 km
New Deep-Sea Port
12 AGRODOR Hubs
Farming 600,000 Hectares
Rail Alignment with 4 Neighbors
CSRs for National Coherence
Spearhead National Development
3.AGRODOR SUDAN
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Mining
Livestock
Agriculture
Phase 1Phase 3
Phase 2
Phase 5Phase 4
4.AGRODOR DARFUR
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AGRODOR Hub
Marin Transit Hub
Arable Land for cash Crops
Transit Corridor
Transit Connection
Road Transport
Railways TransportLivestock Farming
Paved Roads & ICT 700 km
7 AGRODOR Hubs
Cash Crops Farming 1 mln Acres
Livestock Farming 2 mln Acres
Integrated CSRs Facilities
Rural & Nomad Development
Jabl Marrah
TZB
GEN
FOR
RHD
NYL
FSR
KRM
Railways 400 km
Facilities for 50 Farming Villages
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New Railways Tracks & Roads
Refurbished Existing Tracks
New Traffic Control System
New Strategic Northern Ring
Refurbished End Ports
Refurbished Existing Roads
End Ports
Connecting Ports
AGRODOR HUBs
5.AGRODOR Tanzania
These are carefully adapted and coordinated concepts to be developed as per standards and practices under Ethraa’s Coordination & Advisory
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New Railways Tracks
Refurbished Existing Tracks
Enhanced Traffic Control System
New Strategic Central Link
New Tolled Speed Highway
Refurbished Existing Highways
6.AGRODOR Ethiopia