NEPAD - Infrastructure Short Term Action Plan Executive Summary by dfhercbml

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NEPAD - Infrastructure Short Term Action Plan Executive Summary

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									1.     INTRODUCTION                                  countries and included in the programs put
                                                     forward by the regional economic
One of the main priorities of NEPAD is               communities (RECs). For the short term
the promotion of regional integration in             plan, the main emphasis has been on
the continent because individual African             selecting projects and initiatives with a
economies are typically too small to                 strong facilitation element. The project
generate the economies of scale that can be          selection process was guided by the
found in larger markets. Bridging the                following criteria: projects that are at an
infrastructure gap has been identified as an         advance stage of preparation and that can
important element of promoting regional              be fast-tracked; projects that support both
integration in Africa. Infrastructure is             a regional approach to infrastructure
defined in this context as energy, water,            provision and regional integration; projects
transport,     and       information    and          that have stalled for political reasons and
communications technology (ICT). The                 where NEPAD’s intervention could be
development of regional infrastructure is            expected to make a difference; and
critical for sustaining regional economic            initiatives that offer solutions to regional
development and trade. The potential for             policy,     regulatory    or    institutional
promoting regional integration in Africa             constraints to infrastructure development.
through the sharing of the production,               The Short-term Action Plan will be linked
management        and       operations    of         to and complemented by a Medium- and
infrastructure facilities and through hubs,          Long-term Action Programme that will
development corridors or poles is                    take up projects and initiatives that require
considerable.                                        more      time    for    preparation      and
While the overall picture is one of lagging
coverage, poor maintenance, weak                     For each of the infrastructure sectors, the
financing and inefficient management,                Plan contains a brief statement of overall
there are differences across countries.              objectives linking the sub-sector with the
Many countries have been able to upgrade             overarching goal of reducing poverty.
and expand their infrastructure assets and           Next the Plan reviews the problems and
improve services through a combination of            challenges facing the sector and outlines
policy changes, institutional reforms and            the response under NEPAD. The four
investments. Over the last decade the                common areas covered in the Plan are: (i)
movement of reform to decentralize and               facilitation – establishment of policy,
move away from the public sector                     regulatory and institutional framework to
monopoly model, has gained momentum                  create a suitable environment for
in    all   infrastructure    sectors.   As          investment and efficient operations; (ii)
governments withdraw from direct                     capacity building initiatives to empower
provision of services, they face the                 particularly the implementing institutions
challenge of establishing regulatory                 to meet their mandates; (iii) physical or
frameworks that foster fair competition,             capital investment projects; and (iv)
support the emergence of regional markets            studies to prepare new priority projects.
and ensure that the end users obtain the
expected benefits.                                   The role of NEPAD in ensuring the
                                                     successful implementation of the Short
In developing the action plan, the approach          Term Action Plan will be: a) Mobilising
adopted by NEPAD is two-pronged: a                   political will and actions to implement
short-term action plan has been developed            policy and institutional reforms in the
based primarily on a survey of the                   sectors, including harmonising regulatory
infrastructure projects and initiatives in the       systems, and ratification of agreements; b)

Facilitating the mobilization of resources           2.     ENERGY SECTOR
for regional projects by pooling of
resources of the countries concerned and             The challenge for NEPAD’s Energy
by enlarging the participation of the                Infrastructure Initiative is to develop fully
private sector in operations as well as in           the energy resources of the continent in
financing of infrastructure; and c)                  order to deliver affordable energy services
Facilitating      knowledge        sharing,          to economic and social sectors. This will
networking and dissemination of best                 enhance economic and social development
practices among countries, RECs and                  and improve the standard of living of the
technical agencies.                                  continent’s     population.     Under     the
                                                     Initiative, the continent’s rich energy
Underpinning all NEPAD infrastructure                resources will be developed through
programs will be the objective of                    regional cooperation. Guaranteeing a
strengthening or developing sector                   sustainable supply of affordable energy
governance arrangements that are rule-               will contribute to a significant reduction in
based, predictable, transparent and                  poverty, inequality, and environmental
participatory. A peer review mechanism               degradation. The projects identified in the
will    be     established    to    monitor          Short Term Action Plan will support
implementation of the Plan and to identify           sustainable energy development, and serve
any areas requiring specific intervention to         as building blocks for the realization of
speed up action. The principal aim will be           medium- to long-term goals. The list of
to create the enabling environment for               projects proposed for the short-term action
enhancing competitiveness and stepping               plan is presented in the Box 1.
up the flow of investments.
                                                     The Plan includes power system and
The NEPAD short-term plan in                         gas/oil projects that are ready for
infrastructure is not a new set of                   implementation. In addition, studies will
initiatives. What NEPAD brings is a new              be undertaken for physical projects that
vigour to accelerate the response to                 will be implemented in the medium to long
familiar problems and to implement tested            term.
policies and good practices. The new sense
of urgency is embodied in the Africa                 The Capacity Building Project is intended
leadership’s collective commitment and               to operationalise and strengthen the
determination to urgently mobilize and               African Energy Commission (AFREC)
harness all resources available to speed up          and build capacity in the sub-regional
economic growth and social development               organizations. As regards AFREC, it is
and, thus, eradicate poverty.                        intended to transform the institution into a
                                                     legal entity through the ratification of the
Due to the nature of the Short-term Action           Convention and operationalise it through
Plan, it does not contain all the projects           the appointment of the Board and the
proposed by the RECs, nor does it set out            Technical Advisory Body by providing the
to achieve balance between regions in                appropriate technical support to discharge
Africa. It is to be interpreted rather as the        its responsibilities. The project would also
first stage in a rolling action plan that will       provide technical support to the sub-
be updated periodically as and when better           regional organizations to strengthen their
information becomes available. The                   capacity in        the    formulation    and
Medium-        and      Long-term      Action        implementation of regional policy, as well
Programme will be much more                          as strategy formulation, and preparation and
comprehensive.                                       implementation of regional programs. The
                                                     Capacity Building and Facilitation Projects

will be undertaken by the countries with                       implementation of projects. It is expected
support from AFREC in collaboration with                       that NEPAD would assist in putting into
RECs.                                                          place the necessary energy institutions,
                                                               frameworks, structures, policies and
The Facilitation Project will promote                          strategies to further public-private
reforms and cooperation among African                          partnerships for development of the energy
countries, donors and the private sector for                   sector.
energy infrastructure development. The
preparation and implementation of an                           3.     WATER AND SANITATION
Energy Protocol will assist in attracting
more, less costly investment, as it will                       Sustainable use of available and finite
include establishing legal, regulatory and                     water resources is essential for the socio-
institutional frameworks, assisting in                         economic development of the continent
providing     the    necessary     enabling                    and for eradicating poverty. The available
environment to attract investors. This will                    resources have to be harnessed to meet the
help to reduce the risks and enhance the
                                                               growing basic needs of water supply and
perceptions of investors with respect to
private sector investments.                                    sanitation for a large number of Africa’s
                                                               population, contribute to food security
   Box 1: Summary of Energy Sector Projects and                through use of water for irrigation, and
     Initiatives for the Short-Term Action Plan
                                                               also be able to tap the available renewable
Power Systems Projects                                         hydropower potential of the continent,
Mepanda Uncua Hydropower
Ethiopia-Sudan Interconnection
                                                               required to drive its industries.
West Africa Power Pool (WAPP) Program
Algeria-Morocco-Spain Interconnection (Strengthening)          Some of the critical issues which need to
Algeria-Spain Interconnection & Algeria Gas-fired Power
Station                                                        be addressed in order to accelerate the
Mozambique-Malawi Interconnection                              development of the Africa’s water
Gas/Oil Transmission Projects
Kenya-Uganda Oil Pipeline                                      resources include: (i) the adoption of
West Africa Gas Pipeline (WAGP)                                effective national and regional policies and
Libya-Tunisia-Gas Pipeline
                                                               institutional frameworks based on the
Grand Inga Integrator                                          principle of integrated water resources
DRC-Angola-Namibia Interconnection                             management         (IWRM),       (ii)     the
Nigeria-Algeria Gas Pipeline
Sub-Regional Interconnections (East, West, Central)            establishment of collaborative framework
Capacity Building (Regional)                                   on     agreements     to    facilitate    the
AFREC Operationalisation & REC Capacity Building
Africa Energy Information System & Planning Tools              management and development of shared
Training of Energy Experts                                     water resources, (iii) capacity building;
Facilitation (Regional)
Policies and Strategies
                                                               and the urgent need for improved water
Energy Protocol                                                wisdom. While absorptive capacity is a
Cooperation in new and renewable energy                        limiting factor in some areas, inadequate
Cooperation in improving energy efficiency & reliability
of supply                                                      funding remains a major constraint for the
Cooperation in Oil and Gas trade, refining/processing          sector development: it is estimated that
Cooperation in rural energy                                    US$20 billion annually would be required
                                                               to meet the continent’s Millennium goals.
A key role of NEPAD would be in
                                                               In response to the challenges facing Africa
particular to support the strengthening of
                                                               in the water sector, the African Water
AFREC. Other important roles of NEPAD
                                                               Vision for 2025 has been developed to
relate to facilitating cooperation and
                                                               stimulate a shift in approach toward a
conclusion of agreements, monitoring
                                                               more equitable and sustainable use and

management of Africa’s water resources                             organizations or annual review reports on
for poverty alleviation, socio-economic                            progress made by countries or regions in
development, regional cooperation and the                          achieving selected targets, and facilitating
environment.                                                       the mobilization of funding required by
                                                                   some of the proposed programmes.
The proposed programmes/initiatives
included in the Short Term Action Plan are
fully in support of the Africa Water Vision                        4.     TRANSPORT
and its Framework for Action. They
address the following themes: a) enabling                          The goal of the NEPAD transport program
environment for regional co-operation; b)                          is to close Africa’s gap in transport
support for the development of national                            infrastructure and services, by: a)
IWRM policies; c) meeting urgent water                             Reducing the costs and improving the
needs; d) improving water wisdom; and e)                           quality of services; b) Increasing both
strengthening the financial base for the                           public and private financial investment in
desired water future. A summary of the                             transport infrastructure; c) Improving the
proposed projects is presented in Box 2.                           maintenance of transport infrastructure
                                                                   assets; d) Removing formal and informal
                                                                   barriers to the movements of goods and
 Box 2: Summary of Projects for Short Term Action
         Plan – Water and Sanitation Sector
                                                                   people; and e) Supporting regional
                                          Region                   cooperation and the integration of markets
A: Enabling Environment for Regional                               for transport services.
Water Resource Planning and Management       East Africa
– Nile Basin                                                       NEPAD’s role in the transport sector will
Support of New and Existing River Basin      Several regions       be to provide strategic leadership by
Action Plan for the Integrated Water         West Africa           mobilizing political support and financial
Resources in West Africa                                           resources to pursue needed reforms and to
Water Resources Management in Central        Central Region
Africa                                                             launch programs and projects in support of
B: Support to Development of National                              regional      integration     and     overall
     Integrated Water Resources
     Management Policies:                                          competitiveness. NEPAD will promote
Support for the Development and              Southern Africa       innovative approaches to mobilize
Implementation of National Water Sector
Policies and Strategies - SADC
                                                                   resources to develop infrastructure along
C: Meeting Urgent Basic Services:                                  regional corridors to facilitate trade and to
Rural Drinking Water Supply and Sanitation   West Africa
in the Niger Basin
                                                                   open up previously isolated regions.
Combating Drought and Desertification in     North Africa          NEPAD transport objectives will be
the Maghreb
D: Improving Water Wisdom:
                                                                   pursued under programs targeting specific
Water Resources Assessment in SADC           Southern Africa       institutional constituencies.
Implementation of IGAD HYCOS                 East Africa
Strengthening of the ABN Interstate          West Africa
Forecast Center (CIP)                                              The NEPAD transport program has been
E: Strengthening the Financial Bas for                             developed along five broad themes,
     the Desired Water Future:
Study to Improve Financing Mechanism for     All regions           namely, a) trade corridors without borders
Development of the Water Sector                                    and barriers; b) better and safer roads to
Some of the proposed short-term                                    bring Africa together; c) competitive and
interventions are either just entering the                         seamless rail services; d) efficient ports
implementation phase or are at an                                  and safe seas and ports; and e) safe, secure
advanced level of preparation.                                     and efficient skies and airports.

NEPAD support will be in the form of                               The goal of trade corridors without
mobilizing political commitment, bringing                          borders and barriers is central to the
to bear peer review using independent                              NEPAD transport agenda as cumbersome

        and unpredictable clearance procedures in                         least 25. Increased investment in regional
        the ports, at border crossings, and at inland                     roads will be pursued under the framework
        terminals, as well as unnecessary road                            of sub-regional programs prepared by the
        checks, are a major source of delays and                          RECs. NEPAD will support the
        costs along trading routes particularly                           development of guiding principles for
        along the corridors serving landlocked                            planning and financing the upgrading of
        countries. The role of NEPAD will be to                           roads along regional corridors.
        accelerate the implementation, by member
        States, of existing agreements and                                       Box 4: Summary of Short-term Program for
        protocols to eliminate non-physical                                    Better and Safer Roads to bring together Africa
        barriers and help RECs to set benchmarks                            Institutional, policy advice, road safety.
                                                                            Studies (estimated on the basis of regional programs)
        and seek compliance through the NEPAD                               Regional roads upgrading and construction (Based on
        peer review mechanism.                                              projects included in REC’s programs, which meet the
                                                                            criteria mentioned above and for which studies are
                                                                            available at least to feasibility level).
        The goal of better and safer roads to
        bring Africa together will be pursued by                          The immediate major challenge for
        accelerating the development of regional                          railways is to reverse the historical poor
        networks and by strengthening the                                 management of most national public
        capacity for sustainable road management.                         railways. The goal of competitive and
                                                                          seamless rail services will be pursued
        Box 3: Summary of Short-term programs/projects
                          Trade Corridors                                 through institutional reforms combined
                    Title                        Sub-region               with investments.
Implementation of transit facilitation, joint
(one stop) borders and observatory in the                                 Box 5: Short-Term Projects/Programs for Railways
corridors:                                    West Africa                                     Title                            Country
(a) Abidjan – Ouaga – Niamey; and             West Africa                                                                     Sub-region
(b) Abidjan – Accra – Lome - Lagos            Central Africa           Institutional
(c) Douala – N’djamena – Bangui Corridor.                              Support for concessioning of railways:                 Kenya,
                                                                       -     Technical assistance for strategy formulation;   Uganda,
Implementation of overload control along      West, Central,
                                                                       -     regulatory capacity building; and                Tanzania
corridors:                                    Southern, Eastern
                                                                       -     provision of transaction advisors.               Zambia
                                              and North Eastern
-    at least 2 main corridors in each sub-   and Northern
     region                                   Africa corridors
                                                                       Rehabilitation of Railways in support of
Implementation of harmonized                  Main transit
COMESA/SADC CD & regional bond                corridors in East
                                                                       Uganda Railways
guarantee scheme                              and Southern
                                                                       Malaba – Kampala railway (part of 250 kms),               East
                                                                       including bridges
Strengthening/Establishment of private        Main transit
                                                                       Port Bell and Jinja wagon ferry terminals rehab.
sector associations and stakeholder forums    corridors each for
                                                                       Improving Port Bell – Kampala rail section
                                              West, Central,
                                                                       Kenya Railways                                            East
                                              Southern, Eastern
                                                                       Nakuru – Kisumu rail section rehabilitation (part of
                                              and North Eastern
                                                                       250 kms), including bridges
                                              Africa sub-regions
                                                                       Tanzania Railways                                         East
Implementation of one-stop border posts       Northern
                                                                       Track rehabilitation, upgrading signals telecoms
along NC and two other SADC corridors         (Mombasa)                for Dodoma – Tabora – Mwanza section
                                              corridor, Beira &        Nacala Corridor Railway                                 Southern
                                              Dar – Malawi and         Rehabilitation of 77 Kms (Cuamba – Entre Lagos).
                                              Zambia corridors
                                                                       Feasibility study for railways interconnection:        West and
        The first priority will be to support road                                                                            Central
        sector development programs (RSDPs)                            Feasibility study of the Brazzaville–Kinshasa          Central
                                                                       rail/road bridge                                       Region
        based on the network management                                Feasibility study of Trans-Maghreb railway system      North
        approach and on institutional arrangements                                                                            Region
                                                                       Undertake needs assessment study for Angola and        Angola,
        to ensure reliable funding of maintenance                      D.R. Congo for rehabilitation of the Benguela          D.R.C
        and accountability to users. The medium                        railway corridor system
        term goal is to bring the number of
        countries that are implementing or
        preparing RSDP from 15 at present to at

NEPAD will also support joint or                                            Box 8: Summary of Short-Term Action Plan
                                                                                         Inland Waters
coordinated concessions and cross                                                                                        Country
shareholdings across borders as well as                                                                                 Sub-region
well as the integration of railway services                            Lake Victoria: improvement of maritime          Tanzania,
in multi-modal logistic chains.                                        safety on Status (legislation, safety, search   Uganda, Kenya
                                                                       and rescue capacity)
  Box 6: Summary of Short-Term projects for Ports                      Lake Malawi-Nyassa-Niassa needs                 Tanzania,
                                                   Regions/            assessment on safety (similar to the one        Mozambique
                                                   Countries           already carried out for Lake Victoria)
Physical                                                                                                               DRC, Tanzania,
Mombasa Port: expansion of the capacity of       Kenya, EAC            Lake Tanganyika: need assessment                Burundi,
the container terminal and berth conversion.                                                                           Zambia
                                                                       Congo River: assessment and urgent              DRC,     CAR,
Nacala Port: rehabilitation in support of        Mozambique-           rehabilitation: ports, navaids, institutional   Congo
concessioning                                    Malawi: SADC          support.
Lobito Port: rehabilitation, transhipment        Angola
Abidjan Port: container terminal, dredging       Cote d’Ivoire        The goal of safe, secure and efficient
of Vridi Canal.                                                       skies and airports is to lower the cost of
Dakar Port: rehabilitation and construction      Senegal,
of container terminal                            UEMOA,               air travel and freight, to reduce the
                                                 ECOWAS               isolation of Africa in the air transport
Djibouti Port: container handling facilities     Djibouti,
                                                 Ethiopia, IGAD
                                                                      market, and to improve safety on the
Studies                                                               ground and in the air. The first objective
Mayumba Port pre-feasibility study               Gabon, ECCAS
                                                                      will be to consolidate the Yamoussoukro
                                                                      Decision through support directed at sector
                                                                      reform, airline privatisation, regulatory
In order to fulfill their role as Africa’s                            capacity, restructuring of civil aviation
gateway to rest of the world, regional ports                          services and upgrading of aviation
need to improve their performance and                                 infrastructure. The safety and security
modernize their operations. The goal of                               agenda will be supported through the
efficient ports will be to align the                                  implementation of: (i) a regional UACC
performance of all African ports with the                             (Upper Air Space Control Center) project;
best among them specifically by reducing                              (ii) two regional GNSS project (Global
container clearing time by half or to the                             Navigation     Satellite   System);    (iii)
five-day benchmark by year 2006. The                                  measures to comply with ICAO security
component for safe seas and ports                                     standards; and, (iv) joint safety oversight
                                                                      inspection capacity (COSCAP). At the
includes measures to protect Africa’s
                                                                      political level the NEPAD peer review
seaboard from the risks of maritime                                   mechanism        will      support      the
pollution and to ensure the safety of its                             implementation of the Yamoussoukro
ports. NEPAD will foster multi-country                                Decision. NEPAD will also help to build
approaches to capacity building and                                   consensus for joint action regarding in
environmental preparedness.                                           particular modern upper air space control
Box 7: Summary of Short-Term Projects for
          Safe Seas and Ports
                                                                      Political commitment at high levels will be
                                               Sub-region             a powerful driver for NEPAD objectives,
Institutional                                                         in transport, however in order to obtain
Advisory services for maritime affairs         Southern
                                               sub-region             rapid progress on the ground, the delays
Development of a regional strategy for ship    Southern               and the problems that have plagued
waste reception facilities                     sub-region
Maritime safety and prevention and control     West     and           regional initiatives will have to be
of marine pollution.                           East Coast,            overcome.      NEPAD will pursue the
                                                                      establishment of a Regional Transport
                                                                      Reform and Integration Support Facility

     for Africa (TRISFA). The proposed                                      areas, Africa still remains the continent
     facility would be set up as a trust fund                               with the least capability in ICT and least
     modelled along the lines of the Private                                served by telecommunication and other
     Participation in Infrastructure Advisory                               communications facilities.
     Facility (PPIAF) and would be demand
     driven. It will offer punctual support to                              The threat posed by the digital divide to
     RECs and agencies engaged in NEPAD                                     the rapid development of African countries
     transport programs.                                                    can on the whole be attributed to their
                                                                            inability to deploy, harness and exploit the
    Box 9: Summary of Short-Term Program for                                developmental opportunities of ICTs to
             Safe Skies - Air Transport                                     advance          their      socio-economic
                      Title                           Location              development. There is therefore an urgent
Institutional and physical
Support     for     implementation   of the                                 need to put in place and implement ICT
Yamoussoukro Decision (liberalisation) and                                  initiatives to bridge the digital divide at
aviation restructuring:
-     Regional coordination and exchange of       All regions               four levels namely: (i) bridging the divide
      information and best practices                                        between the rural and urban areas within a
-    Regulatory capacity building                 All countries             given country: (ii) bridging the gap
                                                                            between countries of a given sub-region,
-    Upgrading airport security
                                                  Two non category-         (iii) bridging the inter-regional gap and
-    Upgrading airport infrastructure and         1 major airports          (iv) bridging the gap between Africa and
     related facilities to category 1 standard,   per      sub-region
                                                  (total 10)                the rest of the world.
Establishment of Upper Airspace Control           SADC & EAC
Centre (UACC)
GNSS project                                      Africa & Indian           To address these challenges, the Plan
- Implementation of test bed                      Ocean region              proposes three broad areas of programs for
- Installation of ground infrastructure
Establishment of joint safety oversight units     West, Southern &          implementation under Short-term Action
(COSCAP)                                          East sub-regions          Plan; namely:         ICT Infrastructure
                                                  Central, North-           Development and Roll-out Projects; ICT
                                                  East, North               Infrastructure Development and Roll-out
Establishment of Upper Airspace Control           Study to cover
                                                                            Facilitation    Projects;     and      ICT
Centres (UACC) -                                  other sub-regions         Infrastructure Exploitation and Utilization
                                                  (West, Central,
                                                  North-East, North)
                                                                            Initiatives. A number of projects and
Aviation infrastructure needs assessment study    Angola and D.R.           initiatives have been identified for
                                                                            implementation under each of these three
                                                                            broad program areas.
     5.          INFORMATION AND
                                                                            First, five ICT physical infrastructure
                                                                            development projects to speed up the
                 TECHNOLOGIES (ICTs)                                        process of sub-regional and regional
                                                                            connectivity and inter-connectivity are
     The problem of inadequate access to
                                                                            identified for implementation under the
     affordable     telephones,    broadcasting
     services, computers and the Internet in
     most African countries is due to the poor                                   Box 10: Summary of Short-Term Plan: ICT
     state of Africa’s ICT infrastructure, the                                 Infrastructure Deployment and Roll-out Projects
                                                                                     Project              Region(s)      Sponsors
     weak and disparate policy and regulatory                                COMTEL PROJECT              COMESA       COMESA
     frameworks and the limited human                                        ECOWAS Regional             West         ECOWAS
                                                                             Interconnection Project
     resource capacity in these countries.                                   The SADC Regional           Southern     SADC
     Although African countries, in recent                                   Infrastructure Initiative
     years have made some efforts to facilitate                              The RASCOM Project          Whole        RASCOM
     the ICT infrastructure deployment, roll-out                                                         Continent
                                                                             SAT-3/WASC/SAFE-            South,       SAT3/WASC/SA
     and exploitation process in a number of                                 Utilisation to Improve      Central,     FE
                                                                             Interconnectivity           West, East

Second, five sub-regional and regional                               Box 11: Summary of Short-Term Plan
initiatives directed at facilitating the ICT                     ICT Infrastructure Exploitation and Utilisation
infrastructure development, deployment                                             Initiatives
and rollout process have been identified.                                Project           Region(s) Sponsors
                                                                The African SCAN-ICT       Whole       UNECA
These include: harmonizing the regulatory                       and E-Readiness Initiative    Continent
framework and environment across the                            The African Regional          Whole       RECs
sub-regions; study to assess the                                Telemedicine Initiative       Continent
                                                                The Electronic Governance     Whole       RECs
development of equipment manufacturing                          & Government Initiative for   Continent   AfDB
capability in the continent; developing the                     Africa
necessary human resources; facilitating the                     The African Electronic        Whole       RECs
                                                                Commerce and Trade            Continent   AfDB
effective participation of African countries                    Initiative
in global ICT policy and decision making;                       The African Regional Tele-    Whole       RECs
and strengthening regional institutions                         education Initiative          Continent
mandated to support ICT infrastructure                          The Africa Content            Whole       RECs
                                                                Development Promotion         Continent
development, roll-out and deployment                            Initiative.
activities on the continent.
                                                                projects and initiatives identified under the
 Box 12: Summary of Short-Term Plan: ICT
                                                                three broad program areas. The roles that
   Infrastructure Deployment Facilitation                       NEPAD will play in facilitating the
                  Projects                                      implementation of the projects of the
            Project               Region(s)    Sponsors         short-term plan are also detailed.
Telecommunications Equipment      Whole       ITU-
Manufacturing in Africa Study     Continent   Africa            Specifically, NEPAD will: (i) promote the
                                              Region            projects and initiatives both within and
ICT Policy and Regulatory         Whole       ATU,
Framework Harmonization at        Continent   RECs              outside Africa; (ii) in consultation with the
Regional Level                                                  various      sub-regional    and     regional
Strengthening of African          Whole       Identified
Telecommunications and ICT        Continent   Institution       stakeholders of each of the initiatives
Institutions                                  s                 identify the effective ways and means by
Programme to Enhance Africa’s     Whole       ATU,
Participation in the Global ICT   Continent   RECs,             which to support and speed up the
Policy and Decision Making Fora               NTOs              implementation of each of the initiatives
The ICT Human Resource            Whole       ATU/ITU
Capacity Development Initiative   Continent   -Africa
                                                                within the time-frame of the Plan and (iii)
for Africa                                    Reg               facilitate the mobilization of the required
                                                                financial resources from both domestic and
                                                                external sources to speed up the process of
Finally, to facilitate the wide deployment,                     implementation of the projects. Issues
exploitation and utilization of ICTs within                     relating to the risk factors associated with
the societies and economies of Africa, six                      each of the project areas identified for
continental umbrella initiatives are                            implementation are also addressed in the
identified for implementation namely:                           Plan.
African SCAN-ICT and E-Readiness
Initiative,    The      African    Regional                     6.        PUBLIC PRIVATE
Telemedicine Initiative, The Electronic                                   PARTNERSHIP (PPP) IN
Governance & Government Initiative for                                    INFRASTRUCTURE
Africa, The African Electronic Commerce                                   DEVELOPMENT
and Trade Initiative, The African Regional
Tele-education Initiative and The Africa                        Public-Private Partnerships (PPPs) have
Content       Development         Promotion                     emerged over the last decade as one of the
Initiative.                                                     best ways to foster development, fuelled
                                                                by insufficient investment, growing
The Plan provides details of the broad                          pressures on government budgets and a
institutional arrangements required for                         general concern about service provision by
facilitating the implementation of the

state enterprises and agencies. PPPs have           affecting PPPs and drafting the Law on
taken place mainly in economic (physical)           PPPs and regulation, drafting model PPPs
infrastructure, such as power, transport,           contracts. NEPAD will also encourage and
telecommunications, water and sanitation.           assist countries to establish Regulatory
The desire for greater efficiency and better        bodies in countries where they are absent
services, as well as the limited volume of          as well as facilitating networking and
public resources available to finance such          sharing of experience among regulatory
services are now increasingly leading               agencies and other similar organizations.
governments to embrace public-private
partnership approach. In developing                 Where required, NEPAD will encourage
countries, the total level of PPP’s in              and assist countries to create PPP technical
infrastructure grew from US$ 16.6 billions          units staffed with relevant and skilled
in 1990 to over US $95 billion by 1998.             personnel (legal, financial, economic,
However, in Africa, the value of                    procurement and technical expertise) with
transactions and number of countries with           capabilities to plan and execute PPP
PPP projects are still limited. Over the            programs. In addition, NEPAD will
1990-98 period, Africa accounted for                facilitate collaboration and exchange of
about US$ 14 billion of the total                   experience in PPPs between technical units
investment of US$ 496 billion made in               of countries as well as the dissemination of
PPP projects in developing countries, as            information on good practices.
compared to US$ 237 billion for Latin
America and Caribbean region.
                                                    7.      PREPARATION OF THE
                                                            MEDIUM - LONG TERM
In order for more PPPs to emerge in                         ACTION PLAN
Africa, countries need to improve the
business environment. At present serious            A Medium-Long Term Action Plan
constraints exist in many countries. These
                                                    (MLTAP) study will be undertaken to
constraints are: inadequate legal and               complement and supplement efforts
regulatory framework for PPPs; lack of              undertaken within the Short-Term Action
technical    skills   to   manage     PPP           Plan. It would unfold over an 18-month
programmes and projects; unfavourable               period starting in 2003. The principal
investor perception of country risk,                objectives of the MLTAP will be to:
Africa’s limited role in global trade and
investment, small market size, limited              -    To prepare medium to long term
infrastructure, and limited financial                    strategy for sectors or sub-sector to
markets.                                                 attain specific service and coverage
                                                         standards for each sub-region
NEPAD will encourage governments to                 -    To develop medium term programs to
undertake needed reforms to improve the                  implement the strategy with measures
business climate. This would include
                                                         in the three areas of sector policies and
liberalization of investment, trade, and                 institutional reform, investment and
prices, promoting competition, creating                  sector financing, capacity building.
deeper and broader financial markets, tax           -    To prepare a regional overview on the
reforms, ensuring that commercial law
                                                         basis of the sub-regional programs
protects property rights.                                including support measures and
                                                         initiatives to speed-up implementation
Furthermore, NEPAD will encourage and                    and facilitate coordination among
assist African governments to create the                 NEPAD partners.
necessary legal and regulatory framework
                                                    -    To prepare address cross cutting
for PPPs by assessing existing laws
                                                         themes: governance and regulation,

     financing and pricing, capacity                expected to internalise the NEPAD
     building and knowledge networks.               programmes       in   their    development
-    To establish an Africa Infrastructure          strategies such as the PRSP. The RECs as
     Database and develop plan for its              building blocks of the OAU/AU, the
     upkeep.                                        parent body of the NEPAD initiative, form
                                                    the      sub-regional    level    planning,
The proposed cross cutting study on                 coordination and monitoring of the
financing of infrastructure under NEPAD             integration process. The OAU/AU is the
is particularly important. This is because          apex body at continental level. For
all sub-sectors call for an increase in             NEPAD, the OAU/AU has designated
commercial financing but the fact is that           special committees, the Heads of State
the mobilization of private financing has           Implementation Committee (HSIC) and
been slow and sparse. Very little has been          the NEPAD Steering Committee (SC), to
mobilized on the domestic markets.                  drive the process. NEPAD have also
NEPAD will pursue the development of                designated specialised institutions, such as
instruments to facilitate the channelling of        the AfDB and ECA, to assist it in the
private financing into infrastructure               development and elaboration of specific
programs. Specifically, the financing study         initiatives and programmes.
will review the following issues: a)
guarantee and insurance schemes; b)                 Next Steps: The action steps envisaged
mobilisation of domestic resource for               following the completion of this report are
long-term finance; c) financing for                 classified in the following main themes:
regional multi-country projects; and d)
leveraging of public funds. The study will          a)   Processing    and      Securing     of
also review the emerging African                         Endorsement the Report and Short-
experience with regulation; specifically: a)             term Programme: Among the major
distribution of responsibilities between                 activities to be undertaken is the
regulator and sector agencies; b) statutes,              consultation with RECs and other
tenure, financing of regulatory bodies; c)               designated agencies. This consultation
multi-sector vs. single sector regulators;               will provide an initial opportunity to
and d) regional regulation in telecom, air               secure buy-in of these organisations,
transport, cross-border power traffic etc.               which are critical for successful
                                                         implementation of the programme.
The MLTAP study would be carried out                     Activities under this theme will be
by teams of consultants under the                        completed by 10 July 2002.
oversight of a steering committee
comprising of RECs and the NEPAD                    b) Mobilising          RECs           and
Secretariat, and a coordination unit at the            Implementation Agencies: After
AfDB. An advisory panel would provide                  endorsement of the programme by the
quality assurance.                                     OAU/AU, the RECs and other
                                                       designated implementing agencies
8.      WAY FORWARD                                    will     be  given     implementation
                                                       guidelines and instructions. Each REC
The first step will be to establish an                 will coordinate the elaboration of
effective institutional framework for                  targets and key activities and time
implementation      of    the     NEPAD                schedules       for      implementing
programme. The individual countries                    programmes or projects it is involved
constitute the nuclei of all programmes                with. The Secretariat, assisted by a
and implementation actions. Working with               designated     specialised     African
civil society and private sector, they are             Institution as the infrastructure

     coordinator, will synthesis the                and actions to be determined within the
     submissions of the RECs in order to            framework      of    peer      review.   An
     harmonise them. Activities under this          institutional risk that the institutional
     theme will be completed by 15                  framework may lead to elongated process,
     December 2002.                                 or that the capacity constraints will not be
                                                    solved. NEPAD will avoid additional
c)   Mobilising         Finance:        The
                                                    layers of bureaucracy and promote
     responsibility to mobilise finance will
     be shared between countries, RECs              capacity building initiatives.
     and the NEPAD apex institutions.
     They will set in motion a fund raising         The financial risk that there will be delays
     machinery, which will include                  in implementing projects due to lack of or
     intermittent road shows, round tables          delayed availability of funds be will
     or investment forums. This activity            mitigated by proactively addressing the
     will be continuous.                            concerns of potential financiers and
d) Implementing        the       NEPAD
   Infrastructure Short-term Action
   Plan: The proposed timing of
   implementation     of     the    main
   components of the programme will
   thus be reviewed, according to
   availability of funds. Activities will
   continue over the whole plan period of
   4-5 years.

e)   Establishing a Peer review and
     monitoring system: The first action
     will be to set up a sector Peer Review
     and Monitoring System by September

f)   Undertaking        a       Long-Term
     Infrastructure Perspective Study:
     The long-term perspective study is
     planned to overlap with the
     implementation of the short-term
     programme. The study process will
     thus also provide an opportunity to
     review and refine elements of the
     short-term plan, including the criteria
     for selection of projects, benchmarks
     and targets. It would unfold over an
     18-month period starting in 2003.

Risks: A political risk that some countries
may not pursue or delay implementation of
NEPAD endorsed programmes will be
mitigated through intensive engagement


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