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BEI/10/28

Brussels, 4 March 2010

New regional roads, ports, airports and power generation schemes in Africa: examples of the 11 new projects funded by the EU Africa Infrastructure Trust Fund in 2009

In 2009, a total of 11 grant operations were approved by the EU-Africa Infrastructure Trust Fund to build large-scale energy, transport and information and communication technology infrastructures of regional importance across Africa. The Trust Fund, managed by the European Investment Bank, further expanded its budget in 2009. Total grant resources of € 372 million have been provided to the Fund since its launch and could leverage up to € 5 billion in loans from European or international development financial institutions and the private sector. The European Commission, the main contributor to the Fund, increased its participation by € 200 million.

“Regional integration is a key part of the recipe for a successful sustainable development of Africa. I intend to keep it high on the EU agenda: as Europe experience shows, no regional markets in Africa, no growth. The Trust Fund also shows how development aid can be used to leverage other funds. This is key for Europe since we provide 60% of global aid for development. We have to make better use of aid money and I have set a target that every aid Euro should leverage five euros of other kind of funding for aid. At the moment, the Trust Fund already exceeds that target", stated Andris Piebalgs, European Commissioner for development.

"The European Investment Bank is pleased to work closely with the European Commission and the other donors. The EIB manages the EU Africa Infrastructure Trust Fund and hosts the Secretariat. We congratulate the Trust Fund's proven role as a catalyst for identifying new and innovative projects and its significant contribution to reinforce the cooperation with European Development Finance Institutions": added Plutarchos Sakellaris, EIB Vice President responsible for operations in Africa, Caribbean and the Pacific.

The 11 projects (see annex), add to 8 projects approved in 2007 and 2008, include:

  • Hydroelectric schemes, such as Felou in West Africa as well as,

  • Electricity interconnection schemes, such as the Benin-Togo interconnection and the Caprivi (Namibia-Zambia) interconnection

  • Roads, railways, airports and ports, such as Beira, Walvis Bay, Pointe Noire, Port Louis, the Jomo Kenyata International Airport or the Great Eastern Road in Zambia

  • The East African Submarine Cable system (EASSy), a fibre optical cable linking Southern and Eastern African countries into the international communications network.

  • Preliminary studies for Sambagalou and Gouina in West Africa or Ruzizi and Gibe hydroelectric schemes in Central and Eastern Africa

The activities of the fund will be discussed at the high level conference "Joining up Africa: Regional Economic Integration in Africa" on 4 March in London, in presence of Commissioner for Development Andris Piebalgs. It will look at how the European Commission and African institutions, donors, business and investors can better work together for regional integration in Africa.

2009 marked a record for the Trust Fund. The European Commission increased its participation by € 200 million; the UK also pledged to increase its financial contributions to the Fund by € 20 million and Finland joined as the 13th donor with € 5 million.

Since the Fund was launched in 2007, over € 96 million worth of grant funding has been allocated and a total of € 122 million earmarked for key infrastructure projects, leveraging to date € 1.5 billion. Based on current trends, the total grant resources of the Fund have the potential to leverage investments from financial institutions and European, African or international project sponsors, including the private sector up to € 5 billion.

Background information:

The EU Africa Infrastructure Trust Fund is the main financial instrument for the implementation of the Africa-EU Partnership on Infrastructure. The Partnership was launched in 2006, together with the European Investment Bank and Member States, and aims at reinforcing regional integration through the strengthening of large continental infrastructure networks. The African Union Commission is the main interlocutor of the European Union for the implementation and further development of the Infrastructure Partnership, in close dialogue with regional bodies, specialised agencies and African financial partners.

More information

EU-Africa Infrastructure Trust Fund: www.eu-africa-infrastructure-tf.net.

Information about the Africa EU partnership is available at http://www.africa-eu-partnership.org/index_en.ph

Press contact:

Annex: 11 projects approved in 2009

Approved Grant Operation

Sector

Scope

PFG Lead Financier

Co-Financiers

Grant Amount

date of ExCom approval

Project beneficiary countries

Description

WAPP - Coastal Backbone

Energy

TA

EIB

tbd

1.750.000

27/03/2009

Ivory Coast, Ghana, West Africa

Support to WAPP for the procurement of consultancy for 2 preparatory studies for a power interconnection between Ivory Coast and Ghana

Update of the WAPP Masterplan

Energy

TA

EIB

na

935.000

22/10/2009

West Africa

Update of the WAPP Masterplan for production and transmission

Port de Pointe Noire

Transport

IRS

AfD

EIB

6.600.000

10/11/2009

Rep. Congo and Central Africa

Strengthening and extension of the external seawall; the rehabilitation of wharfs, public and access roads; the installation of a terminal for containers, and a wood storage zone

ECOWAS Electricity Regulation

Energy

DG

AfD

tbd

1.700.000

10/11/2009

West Africa

ITF Grant to be used by the nascent ECOWAS Regional Electricity Regulatory Authority (ERERA) to implement its first regulation activities.

Benin - Togo Power Rehabilitation

Energy

IRS

EIB

KfW

12.250.000

10/11/2009

Benin, Togo

Power grid and electricity transport reinforcement in Benin and Togo

SRESA - Strategic Regional Environmental & Social Assessment

Energy

TA

EIB

AFD, KfW

700.000

14/12/2009

Mozambique, Southern Africa

Study in the framework of the CESUL transmission backbone project connecting the central and southern electricity grids and generation sites

JKIA Upgrading and Rehabilitation

Transport

TA

EIB

AfD

5.000.000

14/12/2009

Kenya and connecting countries

Expansion of Nairobi Airport for the benefit of the East Africa region

Expansion of Port of Walvis Bay

Transport

TA

KfW

EIB, AFD

450.000

14/12/2009

Namibia and neighbouring countries

Update of the Environmental Assessment of the Walvis Bay extension project

Port de Pointe Noire

Transport

TA

AfD

EIB

2.000.000

14/12/2009

Rep. Congo and Central Africa

Consultancy services focussed towards implementing safe procedures, strengthening internal audit and capacity building for the financial and accounting staff of PAPN in order to help decreasing the credit risk for the Port's lenders. The Port Authority further needs external support for implementing an environmental management plan in the day-to-day operation period.

OMVG Phase 2 (Sambangalou Hydro Power)

Energy

TA

AFD

EIB, KfW

350.000

14/12/2009

Gambia, Guinea, Guinea-Bissau, Senegal

Updating economic and environmental study of the Sambangalu Hydropower Project

Gibe 3 Hydro Power Plant

Energy

TA

EIB

tbd

1.300.000

14/12/2009

Ethiopia, Kenya, Djibouti, Sudan

ESIA for the Lake Turkana region in the framework of the financing of a 1870 MW hdydroelectric power plant


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