STUDIES

The African Union Commission (AUC) with the support of the NEPAD Secretariat and the African Development Bank submitted a request to the NEPAD Infrastructure Project Preparation Facility (IPPF) in July 2009 for financial support towards the cost of undertaking the Sector Studies for the Programme for Infrastructure Development in Africa (PIDA). The request is for a grant amount of USD 2 million to the African Union Commission (AUC), to co-finance the PIDA sector studies and fill the financing gap in the study cost estimates. The PIDA comes out of the merging and restructuring of AUC and NEPAD Secretariat led ongoing regional and continental infrastructure study initiatives - { AUC - Continental Master Plans and Policies Initiative and ii) the NEPAD-Medium to Long Term Strategic Frame Work Study} into one.

Project Objective: The overall goal of PIDA is to promote socio-economic development and poverty reduction in Africa through improved access to integrated regional and continental infrastructure networks and services. The PIDA Sector Studies will assist in developing a vision on Africa’s infrastructure based on strategic objectives and sector polices; and prioritized regional and continental infrastructure investment programmes in Energy, Transport, Information and Communication Technologies (ICT) and Trans-boundary Water Resources sectors over the short, medium to long term, up to year 2030. In addition the Studies will recommend the required institutional architecture/regulatory measures for implementation/monitoring and the necessary financing mechanisms.

Key Development Issues Addressed by the PIDA: PIDA offers a platform for fast tracking socio economic development and integration on the continent as it focuses on the regional approach to infrastructure development which advances the benefits of economies of scale as a key engine for such integration, improved intra African trade and increased participation in the global economy. The economies of scale from through shared production, management and operation of transnational infrastructure network and services will result in reduced production and transaction costs, and enhance competitiveness of businesses, with positive impact on foreign direct investment flows to the continent; and on the rate of economic and social development. PIDA therefore addresses these issues by establishing a common vision and global partnership to have in place an adequate, cost effective and sustainable infrastructure base to promote Africa’s Socio economic development and integration into the global economy.

Strategic Context: The design and scope of PIDA aligns itself squarely with the NEPAD mandate of enhancing integration in Africa through the development and implementation of regional infrastructure, and specifically with the NEPAD-IPPF scope of activities which cover support to regional and continental institutions for preparation of multinational projects in all the four infrastructure sectors under PIDA. The PIDA also fits well with the Bank’s Regional Integration Strategy which has as one of its pillars the objective of providing investment, technical assistance and knowledge to facilitate the delivery of priority regional and continental infrastructure.  

Project Description: PIDA is a continent wide programme to develop a vision, policies, strategies and an investment programme for regional and continental infrastructure in transport, iv energy, trans-boundary water and ICT to the year 2030. The programme has as its main component - Sector Consultancy Studies, which are to be supported by the requested IPPF Grant and to be undertaken over an eighteen month duration with various outputs to guide strategic choices for the most sustainable, cost effective options for development of the four infrastructure sectors based on a common vision on how infrastructure could best service Africa’s development over the long term from consultative/validation workshops at sector, regional and continental levels.

Project Cost and Financing: The PIDA initiative requires a total amount of USD 11,391,527, which includes the cost of an independent advisory panel of experts (supported by DFID), regional and sector consultative workshops (supported by NTCF and EU) and implementation of an infrastructure database (supported by the EU). The Sector studies component alone requires a total amount of USD 7,552,343, with the ADF providing USD 1, 933,319 (25.6%); the African Water Facility (AWF) with USD 1,862,224 (24.6%), the Islamic Development Bank (IsDB) with USD 1,756,800 (23.3%), and the NEPAD-IPPF USD 2 million grant representing 26.5% of the cost.
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