The Bank Group s Response to Ports and Hinterland Connectivity in Africa
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1 The Bank Group s Response to Ports and Hinterland Connectivity in Africa INTERNATIONAL ASSOCIATION OF PORTS AND HARBOURS (IAPH) AFRICA REGIONAL CONFERENCE AND EXHIBITION Abuja, Nigeria September 2018
2 Presentation Outline Getting to Know the Bank Bank s High 5 Agenda Transport Infrastructure Challenges Bank Response General Response Rail Project Examples Road Project Examples The way forward 2
3 Introduction to the AfDB AfDB Group African Development Bank African Development Fund Nigeria Trust Fund Background Established African Countries + 26 Non African 30 Country Offices 5 Regional Directorates + Nigeria Country Department Our Clients Middle-Income Countries Low-Income Countries Post-Conflict and Fragile States The Private Sector
4 In Brief Financing Products Type of Intervention Grants & Concessional Lending Projects & program-based operations Loans, Equity Investments, & Guaranties Technical Assistance & Policybased Lending & Non-project activities
5 The Group s High 5 Agenda
6 Bank Contribution to Hinterland Connectivity Through High 5 Agenda 6
7 African Trade Forecast & Transport Infrastructure Demand Trade volume in Africa is expected to grow with the population in the next 30 years So will the demand on the transport Infrastructure network to support this growth The development of the African Regional Transport Infrastructure Network (ARTIN) which connects Ports to the Hinterland (especially for the 14 Landlocked countries) is crucial to support this trade volume Source: PIDA Phase 1 Report 7
8 African Trade Forecast & Transport Infrastructure Demand Source: PIDA Phase 1 Report 8
9 Transport infrastructure challenges Poor Intermodal Linkages; Low Capital Investment; Overall Deficit =USD90 billion/annum; Transport =USD30 billion/annum High Costs of Services; Low Capacities-Congestion and Inefficiency; Poor Sustainability; Poor Private Sector Participation; Weak Institutional and Regulatory Capacity; 9
10 Main issue: High Transport Cost Freight tariff USD per Ton/km USA 0.02 USD per T/Km, Kenya 0.04 per T/Km, Uganda per T/Km, Rwanda per T/Km Niger 0.13 per T/Km Congo DRC 0.12 per T/Km Burundi 0.11 per T/Km Burkina Faso 0.09 per T/Km Transaction Costs (Freight as % of value of imports) 8% in Europe, 11% in Africa, 30% East Africa, 35 % - 40% Rwanda, Burundi, RDC (East) Picture: Thika Road Kenya
11 Transport Sector Strategy AfDB Building the Continent s Transport Infrastructure Increase National and Regional Connectivity Focus on Transport Corridors and Backbone communication Infrastructure Leverage partnerships to plan and finance regional infrastructure Promote Policy dialogue to remove barriers and increase trade Reduced transportation cost Enhanced accessibility and mobility Raising income levels Create jobs Enhance Trade Gender Mainstreaming & Climate Change
12 Transport the Bank s Response Transport Sector Main Areas: Roads, Rail, Port, Airport, Urban Transport, Multinational/Regional Main Areas of Intervention Roads: Re-gravelling; Periodic Maintenance; Rehabilitation; Re-Construction Rail: Studies/Design - Rehabilitation; Urban Transport: Rehabilitation and New works. Airport/Ports: Feasibility Studies Main Activities procured Civil Works Feasibility Studies, Detailed Design, Design Reviews/construction supervision Technical Assistance (e.g. project management, contract management services Sector-wide activities e.g. Policy Development, Economic and Sector Works
13 Finance Transport Sector- Total Bank Approvals (US$ million) Transport Sector - Total Approvals Million US Dollars 2,500 2,200 2,000 1, ,376 1, ,311 1,147 1, ,500 1,
14 On-Going Transport Portfolio By Region (USD Millions) Total = USD 11,599 Million 3,000 2,569 2,500 2,000 2,021 1,500 1,000 1,096 1,003 1, Central East Multi Region North South West
15 On Going Transport Projects 9,000 8,000 Value Of On-Going Transport Projects by Sub-Sector (USD Millions) 7,675 7,000 6,000 5,000 4,000 3,000 2,000 1,000 1, , Air Transport / Airport More Than One Transport Sub-Sector Railways Transport Road Transport / Highways Urban Transport Water & Fluvial Transport / Ports
16 Some HINTERLAND CONNECTIVITY PROJET DETAILS 16
17 RAILWAY INFRASTRUCTURE 17
18 Dakar-Diamniadio-Aibd Regional Express Train Project - Phase 1: Dakar-Diamniadio Segment Purpose: The project's development objective is to contribute to the restructuring of the urban transport system in the Dakar Region in order to achieve the expected level of GDP growth. Specifically, the project will: (i) significantly improve the railway service level between the city centre and suburbs of Dakar; (ii) improve the working conditions of women's groups and youth employability in the project area; and (iii) raise awareness on railway safety, environmental protection and the protection of public property. Project Cost: USD million Financing: AfDB: USD million IsDB: USD million AFD: USD 100 million French Treasury: USD 95 million GoS: USD million 18
19 Isaka-kigali/Keza-musongati Railway Project Purpose: To construct the new line between Tanzania and Rwanda and between Tanzania and Burundi (Isaka- Kigali/Keza-Musongati) as well as to rehabilitate the existing Isaka line. Countries: Tanzania, Rwanda, and Burundi Status: Feasibility study: Phase I completed ; Phase II and detailed studies completed. 1 st Section under construction Total Program Cost estimated: USD4billion Co-financiers: TBD Financing Gap: TBD 19
20 Increasing Capacity on the Tangier- Marrakech Railway Line Purpose: The project s objective is to meet goods and passenger traffic demand on the main Tangiers- Marrakesh railway line. Countries: Kingdom of Morocco Status: On-going Total Program Cost : EUR million Co-financiers: AfDB: EUR 300 million National Railway Company: EUR million The Project: (i) Strengthening Work on Existing KenitraCasablanca Railway Line, (ii) Construction work on a 148 km third line for freight between Kenitra and Zenata (iii) Settat - Marrakech Railway Line upgrading (40 km) 20
21 ROAD INFRASTRUCTURE 21
22 Mombasa-nairobi-addis Ababa Road Corridor Development Program Purpose: To improve transport communications between Kenya and Ethiopia for the benefit of both countries and the region. Countries: Kenya and Ethiopia. Total Program Cost: USD billion The project will be implemented in 3 phases. Phase I, II and III Phase I: Isiolo-Merille (136km) & Studies Cost: USD90 million Phase II: Kenya: Merille-Turbi (245km); Ethiopia: Agremariam-Moyale (193km) Cost: USD482.4 million Phase III: Kenya: Moyale-Turbi (122km); Ethiopia: Hawassa-Ageremariam (198km) Cost: USD386.7 million 22
23 Senoba Ziguinchor - Mpack Road Prject Purpose: The project s strategic objective is to help strengthen sub-regional integration and trade and reduce food production losses in the primary sector as a consequence of the opening up of Senegal s southern regions. Countries: The Gambia, Senegal, & Guinea Bissau Status: on-going (Approved June 2018) Total Program Cost: USD million Co-financiers: EU/EIB/Govt. Senegal Financing (million): AfDB ($103.83) EU Grant ($30.54), EIB Loan ($ 73.29), and GoS ($ 0.62) 23
24 North-west Road Connectivity Support Project Purpose: The project objective is two-fold: (i) improving the competitiveness of the Tunisian economy by addressing the growing demand in terms of transporting goods and people across the urban area of Bizerte, thus helping to ease congestion on access roads to the three industrial areas and the port, and to equalize network loads; and (ii) fostering mobility and trade between the Northern and Eastern regions of the country. The Project: Tunisia: (i) Development of a new South sub-urban two-way, two-lane (2x2) expressway from PK to PK 4+639, connecting road A4/RNr8 to the Viaduct; (ii) Construction of a 2,070 km viaduct from PK to PK ; (iii) Development of a new North suburban two-way, two-lane connecting road from PK to PK linking the Viaduct to RL 348; Cost: Total Cost: EUR million. Financing: ADB (EUR million); EIB (EUR 123 million); Government of Tunisia (EUR million). 24
25 The Way Forward/Conclusion Private sector participation in the sector to drive efficiency. Innovative and tailor-made PPP schemes. Strong project management expertise Innovative construction technologies. Knowledge transfer Training Programme. Implementation of PIDA s Priority Action Plan (projects). Preparation of projects. Innovative investment instruments to complement public-sector lending. Picture: Thika Road, Kenya
26 Thank you AfDB Contacts: EBRIMA FAAL, SENIOR DIRECT, NIGERIA COUNTRY DEPARTMENT,
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