PIDA WEEK 2018

Background

The Programme for Infrastructure Development in Africa (PIDA) was approved as the strategic framework for regional and continental infrastructure development by the AU Assembly (Assembly/AU/Decl.2 (XVIII)) during its 18th ordinary session held in Addis Ababa, Ethiopia, from 29th – 30th January 2012.

As a continental initiative, PIDA provides a common framework for African stakeholders to build the infrastructure necessary to integrate the continent physically, economically and socially, offering opportunities to boost intra-African trade, create new jobs for Africa’s growing population and improving overall socio-economic development on the continent.

The PIDA Priority Action Plan (PIDA- PAP) portfolio of projects prioritized for implementation from 2012 to 2020 comprises more than 400 projects in 51 cross-border programmes, covering the four sectors that include transport (235 projects), energy (54 projects), ICT (113 projects) and trans-boundary water resources management (9 projects). The capital cost of delivering the PIDA-PAP is estimated at US$ 68 billion or US$ 7.5 billion annually.

Of the 400+ PIDA PAP projects:

•   26% are moving from concept to pre-feasibility or feasibility phases;
•   16% are currently being structured for tendering; and
•   32% are either under construction or are already operational.While progress is being recorded in PIDA implementation, it remains a reality that the pace of implementation is slow and not commensurate with global developments and Africa’s aspirations. Africa’s integration agenda is experiencing a critical and momentous epoch with the recently launched African Continental Free Trade Area (AfCFTA) and the creation of a Single African Air Transport Market (SAATM) earlier this year. Both these initiatives rely heavily on infrastructure development across all four (4) of the PIDA sectors. Industrialisation is critical to promoting economic growth, creating sustainable jobs, raising incomes and fostering transformative development. It is thus high on Africa‘s agenda and the concern of forums such as TICAD, the G20, FOCAC etc.

  Current forecasts by the African Development Bank (AfDB) estimate that Africa’s infrastructure development requires between US$130-170 billion annually. While Africa grapples with mobilising domestic resources and private sector investments for PIDA projects, it needs to further address issues of good governance which can affect the quality and delivery of infrastructure. Large-scale transboundary projects of the sort implemented under PIDA are vulnerable to corruption and mismanagement due to their scale and political and strategic importance. PIDA project owners and stakeholders need to have the capacity, mechanisms and enabling environment to practice good governance. While legal and regulatory frameworks such as the African Union Convention on Preventing and Combating Corruption (AUCPCC) are one measure towards enabling good governance overall, stakeholders have seen the need to come together and find concrete actions to address governance issues in infrastructure development. In this regard, the World Bank, AfDB and other partners held regional roundtables on good governance in infrastructure development in Cape Town in 2017, followed by another in Abidjan in June 2018. The roundtables were intended to enhance approaches, standards and tools for good governance in infrastructure development. Given the significance of PIDA, it is important that good governance is entrenched in PIDA implementation and this necessitates continued dialogue between affected stakeholders to devise appropriate strategies, tools and mechanisms.

PIDA Week was inaugurated in 2015 as a platform to bring together key stakeholders involved in the implementation of the PIDA programme, to take stock of progress and identify ways to continue to advance implementation. The first PIDA Week was held in Abidjan under the theme “Accelerating Infrastructure Implementation for Africa’s Integration” while the second event focused on job creation – “Creating Jobs through Regional Infrastructure Development”. In 2017, PIDA Week continued with emphasis on job creation and economic transformation – “Regional Infrastructure Development for Job Creation and Economic Transformation”. The 2017 event emphasized focus on project implementation by highlighting and showcasing five (5) specific PIDA projects:

• Central Corridor (Dar es Salaam to Chalinze Toll Road);
• Kinshasa-Brazzaville Road and Railway Bridge;
• Ethiopia-Sudan Power Interconnector;
• Zambia-Tanzania-Kenya Power Interconnection;

Batoka Hydropower Plant;
The 2017 PIDA Week also included sessions on three (3) AU Agenda 2063 flagship

projects:

• Inga III Hydropower project;
• High Speed Rail Network (HSRN); and
• Single African Air Transport Market (SAATM).The result was the first-ever PIDA Week Communiqué which captured specific recommendations and action points emanating from the various sessions and discussions. In line with emerging developments such as industrialisation 4.0 and noting that the 2018 AU theme is “Winning the Fight against Corruption: A Sustainable Path to Africa’s Transformation”, PIDA Week 2018 will focus on good governance and smart infrastructure under the theme “PIDA Implementation through Good Governance – realising Smart Infrastructure for Africa’s Integration”.

Objectives

The main objective of PIDA Week is to showcase progress made in the implementation of selected PIDA projects, provide a marketing platform to accelerate their implementation, and address crucial issues around resource mobilisation, enabling environment etc. The Fourth PIDA Week in 2018 will build on previous events to continue to engage stakeholders on the effective delivery of infrastructure on the continent focusing specifically on good governance and how it can specifically help to:

• Enable project preparation and implementation;
• Support resource mobilisation;
• Promote private sector confidence to invest in PIDA projects;
• Encourage integration of PIDA projects into national development plans.As part of the strategy of cross-linkages with PIDA stakeholders, the 2018 PIDA Week will incorporate the Africa Forum for Utility Regulators (AFUR) AGM and annual conference. The event will be hosted by the Government of Zimbabwe under the auspices of the Common Market for Eastern and Southern Africa (COMESA).

  Theme and sub-themes

  Theme: PIDA Implementation through Good Governance – realising Smart Infrastructure for Africa’s Integration.

  The 2018 PIDA Week will focus on five (5) sub-themes:

(i) Project preparation, Resource Mobilisation and Financing Mechanisms

One of the major pre-requisites for the mobilisation of financing for projects is project preparation as well as demonstration of bankability of the projects. Mobilizing resources for project development, preparation and implementation is also an essential step towards ensuring effective infrastructure services delivery. There are various financing mechanisms that African stakeholders could use to ensure the implementation of infrastructure projects including domestic and international financing mechanism from both the public and private sectors. Recent development have also seen a global increase in innovative financing for infrastructure projects including climate finance as well as Public-Private Partnerships (PPPs). This Session will aim to discuss barriers, opportunities and emerging trends in projects preparation, resources mobilisation, and projects financing.

(ii) Capacity development, Job Creation and Empowerment

Limited capacity for projects preparation and implementation presents one of the major barriers to infrastructure development on the continent. There is a major need to build and boost technical capacities and skills at all levels of the project life cycle as well as relevant institutions to ensure efficient development and management of infrastructure. In addition, suitable infrastructure development on the continent needs to also provide a platform to absorb capacities, create jobs and empower people including women and youth. This Session will aim to highlight the relevance and requirements for effective capacity development for infrastructure projects as well as discussing the job creation and empowerment potentials of infrastructure development on the continent.

(iii) Smart and Integrated Infrastructure Development

The continuing demand for effective infrastructure services delivery at the regional and continental levels to promote cross-border trade, industrialisation and the movement of goods and services calls for the development of smart and integrated infrastructure in Africa. New and emerging technologies provide ample opportunities to ensure services from infrastructure are made more efficient, reliable and cost-effective. For example, Smart Corridors would enable transport and trade facilitation and also contribute to: (1) improved corridor coordination and management; (2) reduction of transport cost as an overall component of exports and imports; and (3) reduced corruption along the corridors. This Session will cover emerging trends at the global and regional levels on smart infrastructure as well as discussing the opportunities and roadmaps to ensure integrated infrastructure services delivery on the continent.

(iv) Technology, Innovation and Industrialisation

One of the fundamental issues to address in infrastructure development in Africa is the establishment of a comprehensive framework that fosters innovations, technology transfer, technology adoption, technical co-operation as well as research and development. In Africa, where the system of innovation and the capacity is not adequate, the first step is to build innovation capacity that addresses local and specific issues. This will make it easier for technology absorption, modelling of technologies to meet local standards and conditions, and ensure effectiveness of businesses and public services. This will also drive industrialisation and regional integration as well as leapfrog development and economic growth on the continent, amongst others. This Session will aim to deliberate on various technology and innovation frameworks and how best they could be integrated within the wider objective of regional and continental infrastructure initiatives.

(v) Policy, Legal and Regulatory Frameworks

The development of a sustainable regional infrastructure and the promotion of regional integration and intra-African trade require the development of effective, comprehensive and harmonised continental regulatory frameworks, which will enhance regional co- operation and co-ordination of stakeholders including Member States as well as Regional Institutions. A harmonised regulatory framework at the continental and regional levels will facilitate the creation of an African common market, enhance private sector engagement and mobilise the huge financial and technical resources required to provide efficient infrastructure services to all Africans. There is, thus, a need to analyse existing regional and continental regulations including assessment of regulatory frameworks and institutions with a view to propose and implement action plans for harmonised continental and regional regulatory frameworks for effective cooperation between Member States and Regional Institutions in infrastructure development. This Session will aim to identify gaps, recommend best practices and actions in developing a harmonised continental and regional regulatory framework in infrastructure development.

Outcome

It is expected that PIDA Week participants will have the opportunity to meet and engage with key stakeholders in PIDA implementation, identify innovative project financing and partnership models, discuss ways to address challenges facing infrastructure development and contribute to advancing good practice in infrastructure development.

PIDA project owners will have the opportunity to promote their projects, identify investment opportunities and identify ways to advance implementation of their projects.

Recommendations will be captured through a report and Communiqué that will be presented as part of NEPAD’s reporting to the African Union in 2019.