the african development bank: financing transport & … business... · algeria angola benin...
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Africa Business Forum
Johannesburg, South Africa
May 3rd, 2018
The African Development Bank:
Financing Transport & Urban Projects
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Africa
Libya
Madagascar
Malawi
Mali
Mauritania
Mauritius
Morocco
Mozambique
Namibia
Niger
Nigeria
Rwanda
S. Tome &
Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
Sudan
Swaziland
Tanzania
Togo
Tunisia
Uganda
Zambia
Zimbabwe
Algeria
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Cape Verde
Central African
Rep.
Chad
Comoros
Congo
Côte d’Ivoire
D. R. Congo
Djibouti
Egypt
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea Bissau
Kenya
Lesotho
Liberia
African Development Bank (ADB)
– Established in 1964
– Authorized capital - US$ 102 billion
– 54 African and 24 non-African countries
African Development Fund (ADF)
– Established in 1972
– Subscriptions - US$ 28 billion
– Primarily financed by non-African countries
Nigeria Trust Fund (NTF)
– Set-up by Nigeria in 1976
– Capital – US$ 200 million
Europe
Austria
Belgium
Denmark
Finland
France
Germany
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
UK
North & South America
Argentina
Brazil
Canada
USA
Middle East
Kuwait Saudi
Arabia
Asia
China
Korea
India
Japan
An Effective PartnershipFor Africa
Transport & Urban OperationsNon-Sovereign Operations (NSO)
Rail
Airports
Ports
Mass transit
PPPs
Amadou OUMAROU, Director7 Investment Officers
(Abidjan, Tunis & Johannesburg-based)
Administrative Support
Diverse & Multicultural Background: Nigeria, USA, Zimbabwe, Japan, Egypt, South Korea, Niger.
Supported by a Dedicated Team of Professionals: Legal, Procurement,
Economics, Environment, Risk, and Treasury
Graduates from world class institutions:
Columbia, Harvard, SOAS, LSE, SAIS, Oxford, and the University of Alexandria
With work expertise on: Project Finance & Corporate Finance
Solutions-driven team focused on catalyzing projects with
financing viability gaps
Transport & Urban OperationsTeam Composition NSO
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Project SelectionEligibility Criteria
The Bank plays as honest broker between public and
private sector agents, while focusing on beneficiaries
Commercially viable
Developmental
Strong additionality
Sound procurement
Africa-based/registered
Financial Instruments Broad Spectrum of Products
Senior & Junior debt with long tenors – Up to 1/3
Equity investments – Up to 25%
Risk mitigation instruments
Mandated lead arranger & A/B loan
Foreign & local currency (ZAR, CFA, KSh, Naira)
The implementation of the Blaise-DiagneInternational Airport has
ADB Role
• ADB LEAD ARRANGER for EUR 120million of senior debt
• Senior lender
• Supported the resettlement and environmental action plans
• Fair broker during negotiation with the Government
Key Figures
Total Project Cost EUR 270 million
Gov /Debt / Equity 28% / 47% / 25%
ADB Senior Loan EUR 58million
ADB Board Approval March 2012
The Project
• 1.9 km Toll Bridge including 4.7 km ofapproach lanes and interchanges.
• Build Operate and Transfert (BOT) 30year concession
Henri Konan Bédié (HKB) Toll BridgeCOTE D’IVOIRE
(Senior Loan)
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The implementation of the Blaise-Diagne International Airport has
ADB Role
• AfDB Long-term Loan
• Co-LEAD ARRANGER
Key Figures
Total Project Cost USD 4.5 billion
Debt / Equity 60% / 40%
ADB Senior Loan USD 300 million
ADB Board Approval
December 2015
The Project
Development of a 918 Km rail line betweenTete Province through Malawi, connectingto a specialized port on the Indian Ocean• 60% brownfield, 40% greenfield• Provides transport solution for coal
exports, enhancing competitiveness oflocal products
• Project Sponsors: Vale, Mitsui
Nacala Rail & PortMOZAMBIQUE & MALAWI
(Senior Loan)
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Public Private PartnershipsKey Factors
Risk Sharing (i.e. Role of Political Risk in Infrastructure)
Public Service Delivery (through Private Investment)
Contractual Package: Back-to-back Agreements
Return on Investment Considerations: Public & Privat
Role of Advisors: Feasibility & Structuring
Timing Considerations & Financiers
Fernando BALDERRAMASenior Investment Officer, Infrastructure & Urban Development
Transport Department (private sector)African Development Bank
Thank you
AfDB Processing Timelines for Financing
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Requirements:
• Appraisal Mission
• Draft off-take
• Final ESIA
Bank Produces:
• Mandate Letter
Requirements:
• Feasibility Study
• Draft ESIA
Bank Produces:
• Letter of Intent
6 – 9 months