WEF AF13 African Strategic Infrastructure PDF

Industry Agenda
Strategic Infrastructure
in Africa
A business approach
to project acceleration
Prepared in collaboration with The Boston Consulting Group
May 2013
African_Strategic_Infrastructure.indd 1
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World Economic Forum

2013 - All rights reserved.
No part of this publication may be reproduced or transmitted in any form or by any means,
including photocopying and recording, or by any information storage and retrieval system.
The views expressed are those of certain participants in the discussion and do not necessarily
reflect the views of all participants or of the World Economic Forum.
REF 030513
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Contents
Forewords
3 Forewords
3 World Economic Forum

5 African Development Bank
6 New Partnership for Africas
Development Planning and
Coordinating Agency
8 Executive Summary
10 I. Introduction
10 The Challenge of Infrastructure
Project Prioritization
10 The (African) Infrastructure Gap
11 The Programme for Infrastructure
Development in Africa (PIDA)
14 The Business Working Group on
African Infrastructure
16 II. A Methodology for Selecting Projects
for Acceleration
17 Step One: Unbundling Project Data
17 Step Two: Threshold-Based Grouping
18 Step Three: Two-Lens Clustering:
Readiness vs Value
19 Step Four: Selecting and Fine-tuning
the Shortlist
20 III. Deep Dive: Two-Lens Clustering
21 Lens A Project Realization
Readiness and Capacity
21 Axis i: Regional/Country
22 Axis ii: Project Readiness
23 Lens B Project Value and Impact
23 Axis iii: Direct Project Value
23 Axis iv: Project Impact and
Secondary Value Creation
24 Applying the Lenses and
Understanding the Scores
26 IV. Project Preparation and Financing
26 Financing Dialogue
28 Product Innovations that Can Be
Applied in the African Context
28 Infrastructure Bonds
29 Project Preparation Facilities
29 Equity
30 Guarantee Products (e.g. Partial
Credit Guarantee, Partial Risk
Guarantee)
30 Other Innovations
31 Conclusions
32 Appendix
32 Two-Lens Clustering Criteria Metrics
32 Lens A: Project Realization
35 Lens B: Project Value Creation
and Impact
39 List of Abbreviations
40 Endnotes
Infrastructure has been identified as a key priority under the African Unions Strategic Plan
for 2009-2012, which seeks to promote integration, socioeconomic development and
cooperation on the continent. The resulting Programme for Infrastructure Development in
Africa (PIDA) was approved by the African heads of state and government at their summit
in Addis Ababa, Ethiopia, in January 2012, signifying high-level political buy-in and
ownership of the programme.
Developed by the African Union Commission in partnership with the United Nations
Economic Commission for Africa, African Development Bank and the NEPAD Planning
and Coordinating Agency, PIDA specifically calls for new models of partnership between
business, government and donors to implement the 51 Priority Action Plan (PAP)
infrastructure projects already identified.
The projects and programmes in the Priority Action Plan span sectors from power
generation and transportation to water and telecommunications, with an overall capital
cost of US$ 68 billion through 2012 to 2020, or US$ 7.5 billion in expenditure per year up
to 2020. Power generation alone consists of 15 projects worth US$ 40 billion focusing
mainly on creating hydroelectricity generation capacity, building interconnectors between
power pools and constructing regional oil pipelines. Transportation consists of 24 projects
worth US$ 25 billion to link the major production and consumption centres, provide
connectivity among the major cities and open the landlocked countries to enhance
regional and continental trade. Although it represents an impressive figure, the PAP would
take only 0.2% of African gross domestic product and 1% of national budgets, meaning it
is a realistic, convincing proposal.
As a result of discussions with business and government leaders at the World Economic
Forum on Africa Summit in Addis Ababa in May 2012, the World Economic Forum
in partnership with the African Development Bank have formed a Business Working
Group on infrastructure in Africa. Recognized and endorsed at the 20th Assembly of
the African Union Heads of States in January 2013, the BWG will create a coordinated
business voice to review PIDA projects, prioritize a subset of those projects that can be
implemented based on bankability and do-ability, and catalyse their implementation.
This first Report of the Business Working Group presents a selection methodology that
proposes a common language with clear economic, technical, social and regional criteria
to identify infrastructure projects with the potential for acceleration. We expect that the
methodology developed in the context of Africa will be applicable to other regions, albeit
with certain adaptations. The Report also includes ideas around the potential innovations
and new products required to provide the financing required to implement Africas
infrastructure priorities.
We would like to thank the many World Economic Forum partner companies who have
generously contributed their expertise and time as members of the Business Working
Group: A.P. Mller-Maersk, ABB, Absa Capital, Actis, African Rainbow Minerals,
AngloGold Ashanti, ArcelorMittal, Arup, Development Bank of Southern Africa, Etisalat
Group, First Bank of Nigeria, General Electric, Industrial Development Cooperation of
South Africa, Oando, Old Mutual, Philips, Prudential, Rio Tinto, Sasol, SNC-Lavalin,
Standard Chartered, Sun Group, Transnet, United Phosphorus and Vale.
We would further like to thank the many organizations which have served as experts on
the Business Working Group: the African Capacity Building Foundation, Infrastructure
Consortium for Africa, the International Finance Corporation, the Mo Ibrahim Foundation,
the NEPAD Business Foundation, the Office of Gordon and Sarah Brown and the World
Bank.
We would like to make a special acknowledgement of the leadership provided by
Elham M.A. Ibrahim (African Union Commissioner for Infrastructure and Energy), Donald
Kaberuka (President, African Development Bank, and core partner of this Initiative) and
Ibrahim Assane Mayaki (Chief Executive Officer, NEPAD Planning and Coordinating
Agency). We thank them for their genuine, relentless interest and commitment to the
African Strategic Infrastructure Initiative.
41 References
42 Contributors
Strategic Infrastructure in Africa: A business approach to project acceleration
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We would further like to highlight the contributions by additional members of these

Initiative partner organizations, namely Aboubakari Baba Moussa and David Kajange
from the African Union Commission, Adama Deen, Elsabeth T. Tedros, John Tambi,
Abdoul Salam Bello, Mosad Elmissiry and Edmund Katiti from the NEPAD Planning and
Coordinating Agency, and Alex Rugamba, Shem Abraham Chalo Simuyemba, Ralph
Olay, Densil Magume and Cedric Achille Mbeng Mezui from the African Development
Bank.
The experience, perspective and guidance of all the above people and organizations
substantially contributed to a number of remarkable discussions at the Business Working
Group meetings in Johannesburg, the Regional Economic Communities meeting and the
World Economic Forum Annual Meeting 2013 in Davos-Klosters.
Alex Wong
Senior Director
Head of Business Engagement (Geneva)
Pedro Rodrigues de Almeida
Director
Head of Infrastructure & Urban Development Industries
Elsie Kanza
Director
Head of Africa
African Strategic Infrastructure
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African Development Bank

Transforming Africa through Infrastructure Partnerships
Home to some of the worlds fastest growing economies, Africa is at a critical threshold as
it positions herself as the worlds leading resource frontier and the number of resourcerich economies increases. This will drive demand for infrastructure, which is already one of
the continents greatest challenges to sustainable development. However, Africas need is
not just for an adequate, efficient and viable infrastructure stock, but for transformational
infrastructure that will spur Africa to the next level of development and reposition the
continent as a recognized player in the global economy.
The African Development Bank (AfDB) has worked with other partners, both public and
private, to support the formulation of the Programme for Infrastructure Development in
Africa (PIDA), an infrastructure agenda that will radically makeover Africas infrastructure.
PIDA was approved by African heads of state and government at their 18th Summit held
in Addis Ababa, Ethiopia, in January 2012. In approving PIDA, they emphasized the need
for domestic resource mobilization and innovative financing approaches to support Africas
infrastructure modernization and strong public-private partnerships.
PIDA assumes that the average economic growth rate for African countries will be 6%
a year between 2010 and 2040, driven by a surging population, increasing levels of
education and technology absorption, greater demand for goods and services as well
as industrialization. This growth implies that over the three decades to 2040, the GDP of
African countries will multiply sixfold, the average per capita income will rise above US$
10,000 for all countries and demand for infrastructure will swell.
PIDA envisages investments of US$ 360 billion up to 2040 and priority investments
of US$ 67.9 billion up to the year 2020 in the critical infrastructure sectors of energy,
transboundary water supply, transport and information and communications technology
(ICT). It is worthwhile to note that Africa has shown the resolve and political will to make
this happen through the continents own resources and in partnership with the international
community. Realization of infrastructure projects requires strong project preparation
capabilities and resource mobilization. The AfDB hosts the Infrastructure Project
Preparation Facility of the New Partnership for Africas Development (NEPAD-IPPF) and the
Infrastructure Consortium for Africa (ICA), both multiple donor-funded initiatives. These will
continue to add value to Africas infrastructure development through project preparation
and resource mobilization.
The essential benefits of a regionally integrated approach to infrastructure development are
to make possible the formation of large competitive markets in place of small, fragmented
and inefficient ones, and to lower costs across production sectors so as to stimulate
industrialization and growth. Apart from markets for goods and services, the realization of
PIDA will also give rise to regionally integrated markets for infrastructure services such as
power trade, ICT and transportation services. The growing trend in trade in services across
Africa particularly financial services as financial markets deepen requires state-of-the-art
communications infrastructure.
In all this, the private sector will be key, not just as financiers and implementers, but also
as conduits of technology, innovation and skills. The AfDB therefore welcomes the positive
partnership and collaboration with the World Economic Forum in establishing a Business
Working Group (BWG) through the Africa Strategic Infrastructure Partnership. The BWG
is helping build the necessary capacities in terms of institutions, equipment manufacture,
maintenance and related dimensions which will be critical to ensuring sustainable
infrastructure interventions in Africa.
The BWG also enables the public sector to benefit from objective, transparent and
informed inputs from the private sector on the key issues impacting Africas infrastructure
delivery, which, if properly addressed through results-driven dialogue, could create
immense opportunities for private sector participation in infrastructure in Africa and result in
win-win public-private partnerships (PPPs).
The AfDB will continue to work with partners outside and within Africa notably continental
bodies such as the African Union Commission (AUC), NEPAD Planning and Coordination
Agency (NEPAD Agency), the UN Economic Commission for Africa (UNECA), as well as
regional economic communities (RECs), development partners and specialized agencies
including civil society organizations. A transformed and prosperous continent anchored on
sound infrastructure is only possible through collaborative and results-driven partnerships.
Gilbert Mbesherubusa
Vice-President for Infrastructure
Private Sector and Regional Integration
AfDB
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New Partnership for Africas Development Planning and

Coordinating Agency
On the occasion of the launch of Strategic Infrastructure in Africa: A business approach
to project acceleration, the New Partnership for Africas Development Planning and
Coordinating Agency (the NEPAD Agency) expresses its sincere gratitude to the World
Economic Forum, government agencies, stakeholders and partners for their critical role
in ensuring the continued relevance and success of Africas flagship programme, the
Programme for Infrastructure Development in Africa (PIDA).
For the NEPAD Agency, 2012 heralded the beginning of the second decade of NEPAD.
Moreover, our 10th anniversary presented an opportunity to celebrate our many
successes as well as reflect on both challenges and opportunities that lie ahead. After
a decade of charting our own development strategy under a bold leadership, Africa is
experiencing a renaissance propelled by optimism and inspiration as a result of a steady
growth over the past years.
Africa is experiencing a dynamism that is globally acknowledged and is making steady
and considerable progress in its transformation agenda by embracing far-reaching
political and socio-economic reforms in spite of several daunting challenges. This
transformative development agenda is taking place within a challenging, complex and
ever-changing global context. However, the results are undeniable; Africas economic
growth has accelerated since 2000, making it the worlds third-fastest growing region
over a decade, even in the midst of a global economic slowdown.
However, to render this growth more equitable and consistent across our region, intraregional trade must be accelerated. Therefore, regional integration is high on the political
agenda, which can only be achieved on the back of a solid infrastructure base. Sound
infrastructure will enable both public and private sector companies to achieve economies
of scale and become increasingly relevant and competitive within the global economy.
During the World Economic Forum on Africa in Addis Ababa, Ethiopia, in May 2012,
global and African business leaders agreed that the time had come for immediate action
with respect to comprehensive infrastructure development in Africa. They identified the
lack of linkages with the private sector as a major impediment. Since the launch of the
Business Working Group, we are proud to announce that commendable progress has
been made in strengthening the aforementioned linkages as recommended during the
Forum meetings of 2012. Through its close partnership with the Forum, the private
sector, the African Union Commission, the NEPAD Agency and the African Development
Bank has created an effective and strategic platform from which to contribute to its
commitment in accelerating the implementation of the PIDA Priority Action Plan (PIDA
PAP).
The BWG provides a unique platform to help inform and shape policies, which we believe
will close the funding gap by attracting greater private sector capital towards Africas
infrastructure projects through PIDA. We are confident that this high-level business group
will continue on its positive path to achieve its mandate of voicing the concerns of the
private sector and identifying solutions with respect to successful African infrastructure
development. Along with its partners, the NEPAD Agency as the technical arm of the
African Union in implementing PIDA is certain that this platform will facilitate the requisite
conducive environment and the required domestic and global visibility necessary to
attract investments to Africas regional infrastructure projects.
Ibrahim Assane Mayaki
Chief Executive Officer
NEPAD Planning and Coordinating Agency (NEPAD Agency)
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Executive Summary
The Infrastructure Financing Gap
Public infrastructure development drives
economic growth: for every dollar spent
on public infrastructure development,
the gross domestic product of a country
rises between US$ 0.05 and US$ 0.25.1
Despite this, however, global infrastructure
suffers from significant and growing
underinvestment. According to the G24,
by 2020, global demand for infrastructure
investment will be US$ 1.8-2.3 trillion, more
than double its 2008 level of US$ 800-900
billion. Development of environmentally
clean infrastructure would raise this
amount by an estimated US$ 200-300
million per annum.
While infrastructure demand is growing,
public infrastructure financing has become
more difficult to obtain as public budgets
are strained. Since the crisis of 2008, it has
become more difficult for banks to lend (e.g.
as a result of the Third Basel Accord), even
as the use of risk-mitigation tools (such as
collateralized debt obligations) has been
curtailed. Particularly in the developing
world, private capital will need to play
a larger role in infrastructure financing if
development is to keep pace with demand.
Private-sector investors will need tools
to help them analyse and accelerate
worthwhile projects.
The Programme for Infrastructure

of accelerating implementation of the PAP

programmes.
In response to this need, a Programme

for Infrastructure Development in Africa
has been formulated by the African Union
Commission in partnership with the
United Nations Economic Commission for
Africa, the African Development Bank and
the NEPAD Planning and Coordinating
Agency. PIDAs purpose is to provide
coherent, strategic, long-term planning for
infrastructure development for all African
stakeholders.
The BWG has developed a methodology

to identify and prioritize projects that may
benefit from accelerated development up
to the tendering process. This methodology
is intended to accelerate private-sector
involvement in infrastructure in Africa and
provide a model that can be replicated and
scaled up across continents. The aim of
this report is to introduce this methodology
and give an overview of potential new ways
to finance acceleration of infrastructure
projects.
PIDA aims at:

Increasing energy access and reducing
power generation costs
Reducing transport costs and boosting
intra-African trade
Ensuring water access and food
security
Increasing global connectivity
The heart of PIDA is the Priority Action Plan
(PAP), a list of 51 immediately actionable
programmes across four key infrastructure
sectors. Aimed at promoting regional
integration, these programmes are all to be
initiated by 2020.
As part of the World Economic Forum
on Africa in Addis Ababa in May 2012,
35 companies, multilateral development
banks, NGOs and regional experts and
organizations formed a Business Working
Group (BWG). This group is meant to add
private-sector perspective to the process
A Methodology for Selecting

Infrastructure Projects for
Acceleration
The methodology proposed here contains a
portfolio of analytic tools to be used in four
basic steps. The criteria these tools employ
can be calibrated to meet the specific
requirements of any stakeholder.
The four Stage Gate steps are (see Figure 1):
1. Unbundling complex programmes into
discrete individual projects to facilitate
direct comparison, as comparisons
between broadly labelled programmes
are often misleading.
2. Grouping projects by their potential
along three key thresholds (data
quality/availability, project environment,
project complexity) to grade them for
immediate, mid-term or long-term
acceleration.
Figure 1: Four Steps of Project Selection Methodology
Decomposition &
data collection
51 PIDA
projects &
programs
Estimated
100
projects
Threshold-based
grouping
Immediate
Midterm
Longterm
Decompose programs
to ensure projects on
comparable level
Most relevant for
Transportation &
ICT
Clarify linkages
between sectors
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Key thresholds applied

Projects grouped as :
Pot. immediate private
sector acceleration
Pot. mid-term private
sector acceleration
Long-term project
acceleration
Two-lens project
clustering
Fine-tune
project short list
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project realization
readiness/capacity:
Project readiness
Regional/country
readiness & capacity
Project value/impact:
Direct project value
Impact & secondary
value creation
Consider projects wellpositioned in matrices

Further assess Public
and BWG support
Aim for diverse pilots:
Sector, region, etc.
Next step: Identify 1-2
pilots in project round
tables
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3. Using the two-lens clustering method

to identify candidates for immediate
acceleration according to their
readiness and likely value creation and
impact.
4. Fine-tuning the shortlist thus produced
by rating projects on other key
considerations (for example, regional
and sector diversity and public support).
Infrastructure Financing
Of the US$ 93 billion per year the World
Bank estimates that Africa needs to invest
to close its infrastructure gap, just under
half is currently financed, with major
sources being African governments,
multilateral and bilateral sources of finance,
Official Development Assistance (ODA)
and the private sector. According to the
Africa Infrastructure Country Diagnostics
(AICD), these sources together contribute
approximately US$ 45 billion per annum,
leaving a gap of about US$ 48 billion per
annum to be financed.
III. Equity: This stream plays a catalytic role

in raising debt finance, which would
typically cover only 60-80% of the cost
of constructing an infrastructure asset.
IV. Guarantee Products: Partial credit and
risk guarantees help leverage African
Development Fund (ADF) resources
in order to mobilize private-sector
financing and facilitate the flow of
investments to non-sovereign projects
in low-income countries.
V. Other innovations: ADF, the
concessional arm of the African
Development Bank, has been looking
at new innovative products as part of
its 13th replenishment that would allow
leverage to the extent possible so as to
maximize every US$ 1 of concessional
finance in the face of still significant
unmet financing needs.
The application of the above-mentioned

innovations in African infrastructure finance
has the potential to help significantly move
more African projects across the value
chain. The African Development Bank
has also been looking to create a broad
infrastructure financing facility with an array
of activities covering advisory services,
development equity, lending and guarantee
to help scale up and complement existing
facilities within African infrastructure
financing.
While infrastructure demand is growing,

public infrastructure financing has become
more difficult to obtain. Public budgets are
strained; as a result of the global financial
crisis and, more recently, the Eurozone
sovereign debt crisis, the budgets of major
donors that have traditionally supported aid
flows to Africa are under pressure, making
ODA increasingly uncertain and likely to
decline. Since the crisis of 2008, it has
become more difficult for banks to lend
(e.g. as a result of the Third Basel Accord)
and the use of risk-mitigation tools (e.g.
collateralized debt obligations) has been
curtailed.
Institutions such as Multilateral Development
Banks (MDBs) now have a bigger and
growing role to play and need to find new
ways to redefine their roles in this changing
environment by making new and relevant
interventions.
The report shows some of the innovations
and new products in African project finance
as well as other efforts currently under way
to scale up infrastructure delivery in Africa:
I.
II.
Infrastructure bonds: These can be

raised from the domestic currency
markets or international capital
markets, provided sufficient credit
enhancements and structuring of the
project allow an investment-grade
rating.
Project preparation facilities: These
are important especially for projects at
feasibility stage and for increasing the
flow of funds available at the critical
early stages of project development.
5/3/13 5:23 PM
I. Introduction
The Challenge of Infrastructure
Project Prioritization
Figure 2: Annual Infrastructure Spending by Sources Compared to Needs 2020

(Real US$ billions, 2008)
1,800-2,300
When properly aligned with a countrys

long-term priorities, public infrastructure
development drives economic growth. It
is generally assumed that for every dollar
spent on public infrastructure development,
the gross domestic product of a country will
rise approximately US$ 0.05 to US$ 0.25.2
Not every proposed project, of course, is
equally valuable. Given that resources of
time, labour and capital are always limited,
decision-makers must give priority to
infrastructure projects that yield economic
and social benefits most efficiently.
This, however, is far more easily said
than done. First, decision-makers must
weigh competing projects against the
requirements of multiple constituencies
including the public, private industry,
multilateral development banks, donors
and governments. Second, significant
infrastructure projects are complex,
multipart undertakings. Carefully analysing
any individual project let alone making
useful comparisons between different kinds
of projects (water, transport, energy, etc.)
can be very difficult.
The challenge is most urgent in emerging
economies where a lack of developed
infrastructure is often a crucial factor
inhibiting potentially large economic growth.
The (African) Infrastructure Gap

Infrastructure, though proven to offer
substantial economic, social and
environmental benefits, suffers from
significant underinvestment. To keep pace
with current demand globally, it is estimated
that investment in infrastructure must more
than double, increasing by US$ 1 trillion
per annum through 2020 (see Figure 2).
Development of environmentally clean
infrastructure would raise this amount by an
estimated additional US$ 200-300 million
per annum.
1,000-1,400
Private sector
Other developing countries financing
Concessional ODA
800-900
150-250
20-30
20-30
MDB financing
Government budgets
500-600
Estimated split of current

annual investments,
2008
Future annual investment needs,

2020
Note: Sources of finance are split approximately and do not add up to the total annual investment figure.
Source: Split of current sources of finance is the G24s own assessment based on various estimates including Estache (2010),
Multilateral Development Bank G20 Working Group on Infrastructure (2011), Macquarie (2009).
Infrastructure financing has been affected

significantly by the recent turmoil in
the financial sector as the availability of
financing has become tighter (e.g. as a
result of the Third Basel Accord) even as
the ability to reduce risks (e.g. in the form
of Collateral Debt Obligations) has been
curtailed. In combination with strained
public budgets and increasing infrastructure
needs, this financial crisis has widened
the infrastructure financing gap, even
though the long-term economic, social and
environmental benefits of infrastructure
development are firmly established.
To reinvigorate the provision of infrastructure
in the developing world, there will have to be
greater reliance on private investments than
in the past.
Africa is seen today as a continent of
enormous opportunity, a destination for
investors and development actors seeking
high-growth markets. It has been estimated
that average annual economic growth
for African countries will be 6% a year
between 2010 and 2040, as the continents
population, education levels and rates of
technology absorption rise.3
However, Africas economic growth is
being hampered by a lack of infrastructure.
Infrastructure services in the region are
roughly twice as expensive on average as
in other developing regions.4 The lack of
10
<20
existing infrastructure and funding for future

investments is constraining trade and job
creation. The World Bank estimates that
Africas infrastructure deficit holds back its
economic growth by 2% each year.
Forecasts show a significant increase
in African infrastructure demand across
sectors:
Energy consumption will increase from
590 terawatt-hours (TWh) in 2010
to more than 3,100 TWh in 2040, a
compound annual growth rate of 6%.5
Overall transport volume is expected
to increase up to eightfold. Port
throughput, for example, is expected
to rise from 265 million tons in 2009 to
more than 2 billion tons in 2040.6
Water demand will surge as Africas
population grows. The amount of water
withdrawn from African water systems
is expected to rise from 265 cubic
kilometres (km) in 2005 to between
400 and 550 km in 2040.7
Information and communications
technology (ICT) demand is projected
to increase by a factor of 20 by 2018.
To keep pace, the 2009 bandwidth
of 300 gigabits per second will need
to grow to about 6,000 gigabits per
second.8
5/3/13 5:23 PM
I. Introduction
All of this new demand will put additional

pressure on Africas already stressed power,
transport, water and information technology
networks, and has the potential to further
widen the infrastructure gap.
traditionally a key source of infrastructure

financing in Africa, is under considerable
stress given the global financial turmoil of
recent years; it has declined in real terms for
the first time in a decade.
The World Bank estimates that Africa needs

to invest about US$ 93 billion annually (see
Figure 3) to close its infrastructure gap.9
Official Development Assistance (ODA),
Figure 3: Annual Infrastructure Spending Requirements in the Developing World (US$ trillion, 2008)
US$1.8-2.3 trillion
East Asia & Pacific
Europe &Central Asia

Latin America &
Caribbean
Middle East &
North Africa
South Asia
Sub-Saharan Africa
35-50%
5-10%
10-15%
US$1.8-2.3 trillion
Transport
15-25%
Telcomms
10-15%
Electricity
45-60%
Water
15-30%
US$1.8-2.3 trillion
Construction
15-25%
Preparation
10-15%
5-10%
20-25%
5-15%
Split by region
Split by sector
Split by phase
Note: The figures represent US$ trillion per year in 2008 real prices, and refer to capital investments only (excluding operation and maintenance costs).
Source: Estimated annual infrastructure spending need for 2020 calculated by taking the Fay et al (2010) estimate of US$ 1.25-1.5 trillion annually in 2013 and assuming a 4% annual growth rate from 201320, and an additional US$ 200-300 billion annual requirement to make the infrastructure sustainable (by providing for climate change mitigation and adaptation). The split by region, sector and phase is the
authors own calculations taking ranges from Yepes (2008), Multilateral Development Bank G20 Working Group on Infrastructure (2011), and Foster and Briceo-Garmendia (2010). Note that the US$ 200300 billion annual requirement for sustainability is assumed to be split in the same ratio as the other investments across regions, sectors and phases.
At the same time, Africas economic growth

has made the continent attractive to private
investment. With historically low interest
rates prevailing globally (even negative
real interest rates in certain countries),
investors around the world are actively
looking for opportunities in high-growth
frontier markets, including Africa, for better
returns. Despite these strong economic
fundamentals, Africa continues to be seen
as having structural obstacles to private
infrastructure investments. Concerns include
a lack of clear legislation and enforcement
of commercial law, a sometimes low degree
of transparency particularly with regard
to procurement and a mixed track record
in the implementation of public-private
partnerships (PPPs).
The Programme for Infrastructure

To address this need for infrastructure,
the African Union Commission (AUC),
in partnership with the United Nations
Economic Commission for Africa (UNECA),
the African Development Bank (AfDB) and
the NEPAD Planning and Coordinating
Agency (NEPAD Agency) recently completed
formulating the Programme for Infrastructure
Development in Africa (PIDA). PIDAs purpose
is to provide strategic long-term planning for
infrastructure development in a coherent way
for all African stakeholders.
PIDA aims at:

Increasing energy access and reducing
power generation costs. It aims to
enhance access to power from 39% in
2009 to nearly 70% in 2040, reaching an
additional 800 million people.10
Reducing transport costs and boosting
intra-African trade. It is envisaged that
steady advances in regional integration
and services will strengthen trade within
and between countries and regions,
helping to fulfil the promise of the 2028
African Common Market.11
Ensuring food security and access to
water. This is essential as nearly half the
continent faces water stress or scarcity
now and demand is expected to surge.
Demand for cereal, for example, is
expected to increase from 192 million
metric tons in 2005 to 300-350 million
metric tons in 2040.12
Increasing global connectivity. Increasing
broadband penetration by 10%, which
is expected by 2018, is expected to
increase African aggregated gross
domestic product (GDP) by 1% by
strengthening connections between
goods and markets, and between people
and jobs.13
The heart of PIDA is the Priority Action Plan

(PAP), a list of 51 immediately actionable
programmes across the four main
infrastructure sectors, all to be initiated
by 2020 and aimed at promoting regional
integration (see sidebar).
11
5/3/13 5:23 PM
I. Introduction
Transportation
Sidebar: Overview of 51 PIDA PAP Programmes/Projects14
12
Northern Multimodal Corridor
To modernize the highest priority multimodal African Regional Transport Integration Network (ARTIN)
corridor in East Africa. Will facilitate travel by people and goods across the borders between Kenya,
Uganda, Rwanda, Burundi and the Democratic Republic of Congo (DRC), with a spur to South
Sudan
North-South Multimodal Corridor
To modernize the highest priority multimodal ARTIN corridor in southern Africa and facilitate
transport of people and goods across the borders between South Africa, Botswana, Zimbabwe,
Zambia, Malawi and the DRC
Central Corridor
To modernize the third priority ARTIN corridor in East Africa and facilitate travel for people and
goods across the borders between Tanzania, Uganda, Rwanda, Burundi and the DRC
Southern Africa Hub Port and Rail

Programme
To develop sufficient port capacity to handle future demand from both domestic sources and
landlocked countries
Djibouti-Addis Corridor
To revive the rail system in the high-priority multimodal ARTIN corridor in eastern Africa and increase
the flow of goods across the border between Djibouti and Ethiopia
Lamu Gateway Development
To develop sufficient port capacity to handle future demand from both domestic sources and
landlocked countries, with priority given to the Lamu Gateway in Kenya
Beira/Nacala Multimodal Corridor
To modernize and upgrade the rail and port systems serving a major coal export area at Moatize,
Mozambique. This is part of the Beira and Nacala corridors
Trans-African Highway (TAH)

programme
To focus on completion of the TAH missing links in Phase I of this continental connectivity
programme
Single African Sky Phase 1
To create a high-level, satellite-based air navigation system for the African continent
Yamoussoukro Decision (YD)

Implementation
To identify countries ready to fully execute YD, and discuss launch of a voluntary open-skies club on
full-membership basis
Smart Corridor Programme, Phase I
To develop model smart corridor technology and design/implement a continental and regional
corridor efficiency monitoring system
Abidjan-Lagos Coastal Corridor
To modernize the heavily travelled ARTIN corridor in West Africa to promote trade facilitation,
one-stop border posts (OSBPs), capacity enhancement and implementation of public-private
partnership (PPP) in five countries
Dakar-Niamey Multimodal Corridor
To modernize the heavily travelled ARTIN corridor in West Africa to promote trade facilitation,
one-stop border posts (OSBPs), capacity enhancement and implementation of public-private
partnership (PPP) in four countries
Praia-Dakar-Abidjan Multimodal Corridor
To improve marine transport and connectivity between island and mainland countries by creating
a new maritime service between regional ports, as well as a modern information system to link the
maritime service with ports and roads in the Dakar-Abidjan Corridor
Abidjan-Ouagadougou/ Bamako
Corridor
To modernize and rehabilitate the multimodal corridor damaged by civil war in Cte dIvoire
West Africa Hub Port and Rail

Programme
To address future capacity problems in West African ports with two components: a regional hub
port and rail linkage master plan, and port expansion
West Africa Air Transport
To improve air transport service in West Africa, which is currently limited by the lack of a regional air
hub
Pointe Noire, Brazzaville/Kinshasa,

Bangui, Ndjamena Multimodal Corridor
To revive river transport in the Congo-Ubangi River Basin, and modernize road transport along the
corridor
Kinshasa-Brazzaville Bridge Road and

Rail Project, and Rail link to Ilebo
To improve regional transportation and trade systems by building a crossing linking Kinshasa and
Brazzaville, thereby ensuring continuity in railway traffic from Matadi and Pointe Noire to the eastern
border of the DRC and Eastern and Southern Africa
Douala-Bangui Douala- Ndjamena

Corridor
To modernize the highest priority multimodal ARTIN corridor in Central Africa and facilitate travel for
people and goods across the borders between Cameroon, Chad and the Central African Republic
Central African Inter-Capitals

Connectivity
To provide several missing inter-capital connectors
Central Africa Air Transport
To improve air transport service and upgrade airports in Central Africa, which currently lacks a
regional air hub
Central Africa Hub Port and Rail

Programme
To address Central African port capacity constraints through a regional hub, a rail linkage master
plan and port expansion
Trans-Maghreb Highway
To improve travel for people and goods across the Maghreb, where trade and travel are limited by
artificial barriers. Will design and implement a smart corridor system along the highway and install
OSBPs
5/3/13 5:23 PM
ICT
Water
Energy
I. Introduction
Nphamda-Nkuwa
To build a hydroelectric power plant with a capacity of 1,500 megawatts (MW) for export to the
Southern African Power Pool market
Lesotho HWP Phase II - hydropower

component
To supply power to Lesotho and export power to South Africa
Batoka
To build a hydroelectric plant with a capacity of 1,600 MW to enable export of electricity,

involving Zambia and Zimbabwe
Ruzizi III
To build a hydroelectric plant with a capacity of 145 MW to share power between Rwanda,
Burundi and the DRC
Uganda-Kenya Pipeline
To establish a 300 km pipeline for a lower-cost mode of transport of petroleum products

between Uganda and Kenya
Great Millennium Renaissance Dam
To build a 5,250 MW plant to supply the domestic market in Ethiopia and export electricity to the
Eastern African Power Pool market
North-South Power Transmission

Corridor
To establish a 8,000 km line from Egypt through Sudan, South Sudan, Ethiopia, Kenya, Malawi,
Mozambique, Zambia and Zimbabwe to South Africa
Inga Hydro Phase 1
To build a 4,200 MW capacity run-of-the-river hydropower station on the Congo river with eight
turbines in the DRC
Central African Interconnection
To establish a 3,800 km line from the DRC to South Africa through Angola, Gabon and Namibia
to Equatorial Guinea, Cameroon and Chad
Sambagalou
To provide 128 MW of hydropower capacity, 930 km from the mouth of the Gambia river to
supply Senegal, Guinea, Guinea Bissau and The Gambia
West African Power Transmission

Corridor
To establish a 2,000 km line along the coast connecting with an existing line involving Guinea,
Guinea Bissau, The Gambia, Sierra Leone, Liberia, Cte dIvoire and Ghana
North Africa Transmission
To establish a 2,700 km line from Morocco to Egypt through Algeria, Tunisia and Libya
Kaleta
To generate hydropower of 117 MW in Guinea
Rusumo Falls
To produce hydropower of 61 MW for Burundi, Rwanda and Tanzania
Nigeria-Algeria Pipeline
To establish a 4,100 km gas pipeline from Warri to Hassi RMel in Algeria for export to Europe
involving Nigeria, Niger and Algeria
Lesotho HWP Phase II - water transfer

component
To supply water to Gauteng Province in South Africa via a water transfer programme
Palambo
To improve the navigability of Obangui river with added hydropower component
Fomi
To build a hydropower station in Guinea with irrigation water supply for Mali and regulation of the
Niger river involving 9 countries
Multisectoral Investment Opportunity

Studies
To identify and prepare investment programmes in the basin
Gourbassy
To regulate the Senegal river in 4 countries via a multipurpose dam located in Guinea
Noumbiel
To build a multipurpose dam with hydropower generation component for Burkina Faso and
Ghana
Nubian Sandstone Aquifer System
To implement a regional strategy for utilization of the aquifer system
North-West Sahara Aquifer System
To conduct pre-feasibility studies for the improved use of the aquifer system
Iullemeden Aquifer System
To conduct pre-feasibility studies for the improved use of the aquifer system
ICT Enabling Environment
To improve the environment for the private sector to invest in high-speed broadband
infrastructure
ICT Terrestrial for Connectivity
To secure each country connection by at least two broadband cables
Internet Exchange Point (IXP)

programme
To provide adequate Internet node exchange to maximize internal traffic
13
5/3/13 5:23 PM
I. Introduction
The Business Working Group on

African Infrastructure
As part of the World Economic Forum on
Africa in Addis Ababa on 10-11 May 2012, a
meeting of African and international business
leaders was held under the co-chairmanship
of Prudential Chief Executive Officer Tidjane
Thiam, AfDB president Donald Kaberuka,
and former UK Prime Minister Gordon
Brown. The participants agreed to form a
Business Working Group (BWG) composed
of 35 companies, multilateral development
banks, NGOs and regional experts and
organizations (see Figure 4), with the aim

of adding private sector perspective to the
process of accelerating the implementation
of PAP programmes.
Methods of acceleration would be tailored
to individual project needs, it was agreed.
Acceleration could range from a company
offering private sector expertise on capacity
building to private funding of a project study
to private financing of the project itself.
The BWGs first step in enabling this has
been the development of a methodology
to identify and prioritize projects that may

benefit from accelerated development up
to the tendering process. This methodology
is intended to accelerate private sector
involvement in infrastructure in Africa and
provide a model that can be replicated and
scaled up across continents.
The aim of this report is to introduce this
detailed, quantitative-based methodology
and give an overview of potential new ways
to finance infrastructure project acceleration.
Figure 4: Overview of Business Working Group Members

Infrastructure & Urban
Development/Mobility
Businesses
Multilateral
Organizations,
Development
Banks and
Experts
14
Arup
SNC-Lavalin
Transnet
A.P. Mller-Maersk
Energy
Oando
ABB
GE
Mining & Metals

African Rainbow
Minerals
AngloGold Ashanti
Rio Tinto
ArcelorMittal
Sun Group
Vale
Chemicals
Sasol
United Phosphorus
Investors & Fin. services
Dev. Bank of S. Africa

Prudential
First Bank Nigeria
Standard Chartered
Actis
Absa Capital
IDC of S. Africa
Old Mutual
Experts
ML/Development Bank
African Development Bank (Incl. ICA)

African Union Commission
IFC
NEPAD Planning & Coordinating Agency
(NEPAD Agency)
World Bank
Other
Philips
Grow Africa Secretariat
Etisalat Group
Africa Capacity Building Foundation

Mo Ibrahim Foundation
NEPAD Business Foundation
The Office of Gordon & Sarah Brown
5/3/13 5:23 PM
5/3/13 5:23 PM
II. A Methodology for

Selecting Projects
for Acceleration
The four sequential Stage Gate steps
(see Figure 5) are:
1. Unbundling complex infrastructure
programmes into discrete individual
projects to facilitate direct comparisons.
2. Grouping projects by their potential
for immediate, mid-term or long-term
acceleration.
3. Using two-lens clustering to identify
candidates for immediate acceleration
as per their readiness and likely value
creation and impact.
4. Fine-tuning the shortlist produced
in the previous step for other key
considerations (for example, regional
and sector diversity and public support).
Identifying infrastructure projects for

acceleration means analysing a large
number of diverse projects, an extremely
difficult and time-consuming task if
attempted without a rigorous methodology.
The methodology proposed here is a set of
analytic tools to be used sequentially in four
basic steps. These may be thought of as
a series of increasingly fine screens to first
sort and then analyse projects for possible
acceleration. They have been designed
to reduce the amount of complexity in the
selection process by making key project
factors easily visible. While these tools
provide a disciplined structure for analysis,
the criteria they employ can be calibrated
to meet the specific requirements of any
individual project stakeholder.
Decomposition &
data collection
51 PIDA
projects &
programs
Estimated
100
projects
Threshold-based
grouping
Immediate
Midterm
Longterm
Decompose programs
to ensure projects on
comparable level
Most relevant for
Transportation &
ICT
Clarify linkages
between sectors
16
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Key thresholds applied

Projects grouped as :
Pot. immediate private
sector acceleration
Pot. mid-term private
sector acceleration
Long-term project
acceleration
Two-lens project
clustering
Fine-tune
project short list
Project A
Project B
Project C
Project D
Project E
Project F
Project G
Project H
Project realization
readiness/capacity:
Project readiness
Regional/country
readiness & capacity
Project value/impact:
Impact & secondary
value creation
Consider projects wellpositioned in matrices

Further assess Public
and BWG support
Aim for diverse pilots:
Sector, region, etc.
Next step: Identify 1-2
pilots in project round
tables
5/3/13 5:23 PM
II. A Methodology for Selecting Projects for Acceleration
Step One: Unbundling Project

Data
Step Two: Threshold-Based

Grouping
The first step in identifying which

programmes are possible candidates
for acceleration is to unbundle their
components into separate, potentially
stand-alone projects and then group these
by sectors so as to be able to compare like
to like. The key purpose of this step is to
arrange programme data so that it may be
analysed and ranked using the methods in
Steps 2, 3 and 4 described below.
This step acts as a gate, permitting projects

that may be candidates for acceleration
through to subsequent gates for further
analysis, while a project that falls below
the threshold is turned back. It involves
assessing and grading projects on three
thresholds (see Figure 6):
Data quality/availability: Without a
minimum level of data quality and
availability, a project becomes very
difficult to assess correctly. The purpose
of this threshold is to rank projects
on the basis of how difficult it will be
to analyse them credibly. Projects
for which key data is unavailable or
unreliable should not be considered for
acceleration in the short term.
Project environment: A project
attempted in an excessively challenging
environment a hard-to-reach location,
for instance, or one with an indifferent
government is unlikely to succeed.
This threshold is intended to indicate
which projects face long odds of
completion due to their setting and
which do not.
Project complexity: A project with a high
degree of technical or organizational
complexity will be more difficult to
complete than a project that is simple.
This threshold ranks projects on the
basis of their overall complexity. Highly
complex projects are less likely to
benefit from possible acceleration than
less complex ones.
Comparisons between broadly labelled

programmes are likely to be misleading.
Breaking programmes into their
component parts allows specific applesto-apples comparisons. For instance, one
current gateway programme has a rail
component, a port component, and a road
component, each of which could stand
on its own as an individual project. Even a
single-modal programme could possibly
be unbundled into smaller parts: a 1000
km road, for example, could be broken into
a number of smaller road projects, each
potentially worthwhile on its own.
Choosing the correct level of granularity
for this analysis is crucial and must be
determined on a case-by-case basis. It is
important not to break programmes down
into components that have no stand-alone
value and could not plausibly be undertaken
on their own.
The thresholds are intended to identify

projects that meet minimum requirements
in three key categories, each of which bears
on how difficult the project will be to execute
successfully. Projects that fully meet all
requirements as defined (see Sidebar,
Threshold-Based Grouping of Key Data)
are likely to benefit most from immediate
acceleration led by a partnership of privatesector and public entities, and should be
analysed further via two lens-clustering
(see Step 3 below). Projects exhibiting
issues that have the potential for relatively
easy amelioration may be candidates for
public/private acceleration over the medium
term. Government and NGO entities
should monitor these projects and advise
their sponsors on how to best promote
private-sector acceleration efforts. Finally,
difficult-to-assess projects with significant
unresolved complexity or environmental
hurdles, as well as those with significant
potential reputational risks (e.g. due to their
social or environmental impact), should not
be considered for acceleration involving the
private sector.
Figure 6: Initial Grouping Thresholds
Three groups: Lowest threshold

rating determines group
Data quality/
availability
Project
environment
Project
complexity
Sufficient key data

available to
perform clustering
process at this
point
Stable across
dimensions
allowing shortterm project
execution
Limited
complexity,
considered
manageable as of
today
Monitor & offer advise

on private sector
acceleration
preparation, potential
later phase projects
Gaps in available
data preventing
clustering, likely to
fill gaps mid-term
Current issues in
some aspects,
potential mid-term
improvements
Potential
roadblocks, likely
to be overcome
mid-term
Out of scope for

short/mid-term private
sector acceleration,
consider other
acceleration vehicles
Significant data
gaps, likely
requiring longerterm efforts
Significant risks,
likely requiring
longer-term efforts
Critically high
complexity, likely
requiring longerterm work
Potential
immediate private/
public sector led
acceleration
Project short-list for

project phase 1
Perform clustering
applying two lenses
Potential mid-term
private/ public
sector led
acceleration
Long-term, likely
public sector led
project
acceleration
17
5/3/13 5:23 PM
Sidebar: Threshold-Based
Grouping of Key Data
Threshold 1. Data Quality and Availability
For a project to become a candidate for
short-term acceleration, its data must be
available and the quality of the data must
be sufficient to allow review. Essential data
requirements include:
Project basics (including scope/
boundaries, key financial information,
the projects stage of development and
timeline)
A breakdown of programme
components to a stand-alone project
level; additional information (including
project impact, technical readiness,
risks, etc.)
Clear sources of data
Threshold 2. Project Environment

Potential short-term acceleration projects
require a stable environment. Key factors for
this are:
Political stability in the region
Political support for the project
A reliable monetary/fiscal situation for
the project partners
The absence of corruption in the region/
project
Projects should be ranked as:
Being stable across dimensions
Having difficulties in some dimensions
likely to be addressed in the medium
term
Having significant risks requiring longterm solutions
For purposes of threshold-based grouping,

data availability and quality should be
ranked as:
Sufficient, offering the needed level of
detail and accuracy
Containing gaps likely to be filled over
the medium term
Containing gaps likely to be filled only by
longer-term efforts
Threshold 3. Project Complexity

Given initial private-sector capacity
constraints, the first round of projects
considered for possible acceleration should
show only limited complexity. Indications of
low complexity include:
Clear and manageable technical
challenges, with technically comparable
projects already in operation
Step Three: Two-Lens Clustering:

Readiness vs Value
very difficult and time consuming, requiring

the analysis of large amounts of disparate
data.
The next step in the methodology is to

weigh the trade-offs between the costs
of undertaking a project and the value the
completed project is likely to produce. A
project yielding modest benefits may be
very attractive if it can be undertaken quickly
and cheaply, while a high-impact project
may come with difficulties far in excess of
its ultimate value. Identifying the trade-offs
between cost and value and comparing
them between competing projects can be
Two-lens clustering is a tool that can make

that analysis much easier. Using this tool,
data from multiple proposed projects are
collated and quantified, and are then used
to construct two x/y coordinate grids or
lenses. A projects location on these
lenses indicates its level of cost and likely
value creation relative to other projects (see
Figure 7 below).
A clear and limited stakeholder group

with an established track record
The presence of or a clear plan for a
lead implementation agency
Projects should be ranked as having:
Limited complexity manageable as of
date
Potential roadblocks likely to be
overcome in the medium term
Critically high complexity requiring longterm efforts
This three-threshold analysis is designed
to act as a stage gate to identify likely
candidates for immediate acceleration,
which will require further analysis as
described in Step 3 below. For this reason,
a projects lowest score on any of the three
thresholds should be used to determine
whether it is a candidate for short-,
medium- or long-term acceleration.
The aim is to permit only projects that
score well on all three thresholds to pass
on for further consideration for short-term
acceleration. Other projects, whatever their
merits, will require too much additional effort
to be accelerated quickly
Figure 7: Example of Two-Lens Project Clustering

Lens A
Project realization
readiness/capacity
Lens B
ii
iv
Project
readiness
Project
impact &
secondary
value
creation
i
18
Regional/country readiness &

capacity
Project value
creation & impact
iII
5/3/13 5:23 PM
Sidebar: Simplifying the

Methodology
Ideally, when applying the four-step
methodology described above, all relevant
data will be available and there will be
abundant time in which to analyse them.
In practice, of course, data may be
lacking and time inevitably will be limited.
The following shortcuts may be used
to streamline the methodology and to
compensate for the absence of some data.
As a rule, however, better data means
better analysis and the use of estimates
or informed opinion in place of hard
information should be made carefully.
The two lenses are a simple visual

representation and comparison of a large
amount of specific data. For a detailed
discussion of the assembly and uses of the
lenses, see sidebar Deep Dive: Two-Lens
Clustering.
difficult to complete and the private sector

more focused on projects likely to generate
quick results. Private companies will be
most attracted to high-visibility, high-impact
projects whose potential reputational
benefits outweigh their risks.
Step Four: Selecting and Finetuning the Shortlist
The public and private sectors should be

closely engaged in any project that is a
candidate for acceleration. That means the
projects requirements, especially what is
needed to accelerate it, should be clearly
understood by all stakeholders. Those
needs should match closely with a potential
private partners abilities. The expectations
of all stakeholders about a projects risks
and rewards should be closely aligned.
The purpose of Step 4 is to create a shortlist

of projects that are possible candidates
for acceleration from among those wellpositioned in the two lenses of Step 3.
At this step, the potential tradeoffs are
identified and weighed.
For a project to be successfully accelerated,
prospective public- and private-sector
partners need to be ready to engage. While
engagement has been already considered
as part of two-lens clustering, in this step it
is examined in more detail.
The projects location and its industry sector
should match with the interests and abilities
of a possible private-sector company
partner, also taking into consideration that
from a public-sector perspective a diverse
distribution with regard to these attributes
is preferable. Likewise, the projects size,
timeline, and risk profile should match the
private companys interests and preferences.
A good candidate for possible private sector
participation will be at a stage where it has
generated sufficient wins or achievements
to inspire confidence (or soon can), but is
not so advanced as to seem low-hanging
fruit. In general, projects that are easy to
accomplish or very close to completion
will be the least in need of acceleration.
Candidates for acceleration, however, must
show private partners a good balance
between the difficulty of completing the
project and its likely benefits. It is not
unusual for there to be tension between
the public- and private-sector views of this
balance, with public sector actors most
interested in accelerating projects that are
Apply expert judgement when hard data is

lacking.
Particularly for early-stage projects, it may
be difficult to obtain reliable data on project
deliverables, boundaries and schedule.
The opinions of of experts can provide
useful estimates. For two-lens clustering,
for instance, in cases where criteria-level
data are not available, expert opinion may
be used at the dimension level to gauge,
for example, a projects readiness or the
readiness or capacity of the region where
the project is set.
Extrapolate based on historical projects
within the same region or sector type.
Projects of the same or similar type that
have been completed can be used to create
estimates of key financial metrics (e.g. likely
net present value and margins.) Similarly,
completed projects in the same region
can provide valuable information about the
challenges facing a proposed project.
Omit criteria with low decision relevance.
This will vary between projects. In a lowrisk project, for instance, the availability of
certain risk-mitigation tools will not be an
important consideration.
Prioritize projects by secondary industry
enablement.
Projects likely to generate large value for
important secondary industries but where
data is lacking may be analysed by the
higher thresholds described in Step 2
(project environment, project complexity)
without first being analysed for data quality
and availability.
19
5/3/13 5:24 PM
III. Deep Dive:

Two-Lens Clustering
Two-lens clustering is a tool for visually

representing and comparing a large amount
of data about the relative value and cost of
multiple projects using two x/y grids. The
data is organized at five levels from the
broadest (the individual lenses themselves)
to the most specific (metrics).
Lens: The lens level represents the
highest level of aggregation of data.
It is not recommended to further
aggregate the project scores beyond
the lens level as these represent two
key distinct features of a project for
which one lens cannot compensate
for the other; an aggregation would
result in a loss of information. As the
name suggests, the tool consists of
two lenses, one representing project
realization readiness/capacity (Lens A)
and the other project value creation
and impact (Lens B) (see Figure 8).
Less formally, the lenses can be seen as
describing the do-ability and the value/
impact of a project. Each lens consists
of two aspects which represent the x
and y axes in the grid visualization.

Aspect: Each lens is composed of two
aspects, each represented by one axis
of the grid. For each lens, one aspect
represents an intrinsic view of the project
while the other represents an extrinsic
view. The axes represent a scale of 0
to 10 through weighted aggregation of
the three underlying dimension scores.
The weight per dimension is adjustable
to reflect the individual stakeholders
preferences and targets.

Dimension: Each aspect is further
composed of three dimensions. Again,
the weight per dimension is adjustable
to reflect the individual stakeholders
preferences and targets.

Criterion: Each dimension is itself
composed of one to three criteria,
covering all key variables determining
project performance. To provide a
common basis, each criterion is scored
on a 0-10 numeric scale based on the
performance of one to four underlying
metrics.

20
Figure 8: Two-Lens Clustering Example
Lens A
Project realization
readiness/capacity
Lens B
ii
iv
Project
readiness
Project
impact &
secondary
value
creation

capacity
Project value
creation & impact
iII
Metric: Each criterion further comprises

one to four metrics which represent
the most specific level of scoring.
The data format for these metrics
varies, meaning both quantitative and
qualitative data can be considered.
The overall goal should be to base the
criteria on the most objective metrics
possible by including hard data where
available.
A projects location on the lenses reflects
its underlying scores. A project that scores
highly compared to others on realization
readiness/capacity, for example, but poorly
on project value creation and impact, will
be represented as a bubble in the upper
right quadrant of Lens A and a bubble in the
lower left quadrant of Lens B.
Visualizing the data via two-lens clustering
makes specific comparisons between
projects clear, which is highly useful for
structuring efficient presentations and
discussions. Two-lens clustering can also
serve to highlight project strengths or
weaknesses that might be less apparent in
other contexts. Data points indicating poor
realization/readiness capacity, for instance,
might be overlooked on a spreadsheet but
will significantly affect a projects position on
Lens A.
5/3/13 5:24 PM
III. Deep Dive: Two-Lens Clustering
Lens A Project Realization

Sidebar: Regional/Country
Readiness and Capacity Criteria
Lens A classifies projects according

to their do-ability, with the most easily
completed projects shown in the upper right
quadrant and those facing the most difficult
challenges in the lower left quadrant. Doability has two fundamental aspects, which
are represented by the two axes of the grid.
The axes are both marked on a scale of 0
to 10. A projects score on both of these
aspects determines its placement on the
grid.
The aspect of regional/country readiness

and capacity is assessed along eight criteria
covering all key external influences on a
projects do-ability.
The criteria for the economic/political
stability dimension are:
Political stability: The stability and
performance of political institutions as
well as the risk of war in the project
area. An ideal project would have a very
stable political environment (including,
for example, transitions of power that
do not disrupt business), a track record
of well-functioning political institutions
and a low risk of war. A low score on this
criterion can be increased by the use of
risk mitigation instruments.
Economic stability: The budget and debt
management of the countries associated
with the project, the reliability of financial
institutions in the project area, as well
as the volatility of the real currency
exchange rate and related risks. An ideal
project would be located in a region
that is known for its ability to manage a
budget successfully and to limit debt.
The financial institutions involved would
be experienced and well functioning,
making capital transactions easy. Either
the local currency exchange rate (to Euro
or US dollar) would be stable or effective
risk mitigation instruments would be
available.
Rule of law: The functioning of the
legal system (particularly judicial
independence and process) and the
security of property, especially the risk of
expropriation. For an ideal project there
would be no precedent of expropriation
in the countries involved and the
legal system would be seen as fair,
independent and well-functioning.
Axis i: Regional/Country Readiness and

Capacity
Regional/country readiness and capacity is
the extrinsic aspect of a projects do-ability
the degree to which the leaders, people and
businesses of the area where the project
is set are able and willing to facilitate its
construction. For this analysis, a projects
score with regard to an aspect is considered
as the sum of its weighted score on three
main dimensions of readiness and capacity:
economic and political stability, public
sector readiness and capacity, and private
sector readiness and capacity. A projects
score in each dimension comes from the
sum of its weighted scores on a number of
criteria (see Figure 9). The individual criteria
scores (see Sidebar, Regional/Country
Readiness and Capacity Criteria) are the
sum of a projects weighted scores on
several specific metrics (see the Appendix).
The criteria for the public sector readiness

and capacity dimension are:
Bureaucracy and red tape: The process
for obtaining documentation and/or
authorization for business activities in the
involved countries. An ideal project would
be situated in a country that has limited,
internationally-accepted requirements
and is swift in processing requests.
Government capacity: The public
administration capacity at the projects
location. The ideal project would rely on
a high-quality public administration that
has the effective power to govern.
Accountability, transparency and
corruption: An ideal project would be
in a country with high transparency
and accountability standards which are
properly enforced. No corruption should
be present and the country should have
a record of strongly prosecuting abuse of
office.
The criteria for the private sector readiness
and capacity dimension are:
Access to labour: The availability of
skilled labour and the rigidity of hiring
and employment practices in the project
countries. The ideal project would be
in an area with a sufficient, capable
workforce with the right skills. Hiring and
employment practices would be in line
with international standards.
PPP maturity: Overview of past private
investments in the relevant sector (ICT,
energy, water or transportation) and
evaluation of projects that have been
cancelled or distressed. The ideal project
would be in an area where the countries
have significant experience with private
infrastructure investments, and projects
in the past have been successfully
implemented, with few cancelled or
distressed.
Figure 9: Breakdown of Lens A: Project Realization, Readiness and Capacity
Dimensions
40%
Aspect i:
Regional/ country
readiness &
capacity
Lens A:
Project
realization
readiness/
capacity
Aspect ii:
Project readiness
40%
Economic/ Political
stability
Public sector
readiness &
capacity
20%
Private sector
readiness &
capacity
40%
Project
environment
30%
30%
Project
preparedness
Project complexity
Criteria
30%
Political stability
40%
Economic stability
30%
Rule of law
30%
Bureaucracy & red tape
30%
Government capacity
40%
Accountability, Transparency & Corruption
60%
Access to labor
40%
PPP maturity
50%
Political project support
30%
Project policy environment
20%
Physical environment
30%
External stakeholder engagement & alignment
40%
Front-end loading/ prerequisite fulfillment
30%
Project plan readiness
40%
Coordination needs & complexity
60%
Technical demands & complexity
21
5/3/13 5:24 PM
Axis ii: Project Readiness

Project readiness is the intrinsic aspect of
a projects do-ability: the degree to which it
is (or is not) ready for actual construction to
begin (see Figure 9).
For purposes of two-lens clustering, a
projects score on this aspect is considered
as the weighted sum of its scores on three
dimensions: project environment, project
preparedness and project complexity. Its
score on each of these dimensions, in
turn, is the weighted sum of its scores on
a number of criteria (see Sidebar, Project
Readiness Criteria). The individual criteria
scores are the weighted sum of a projects
score on several metrics (see the Appendix).
Sidebar: Project Readiness

Criteria
This aspect is assessed along eight criteria
covering all key internal influences on a
projects do-ability.
The criteria for the project environment
dimension are:
Political support for the project: The level
of support from the countrys leadership
and the level of agreement among the
countries involved. Ideally, a project
would have the public commitment of
the head or heads of state.
Suitability of policy environment: The
effect of existing policies on the project,
as well as the compatibility of the policies
and regulations of the countries involved.
In an ideal environment, policies and
regulations are clear and processes for
compliance run quickly and smoothly.
Aptness of physical environment: An
assessment of project location, its
existing local infrastructure and the
amount of supporting work necessary to
enable project construction.
The criteria for the project preparedness
dimension are:
External stakeholder engagement and
alignment: The level of stakeholder group
engagement as well as stakeholder
response to the project. Ideally, all
stakeholders, including the public, should
be well-informed and supportive of the
project.
Front loading/prerequisite fulfilment: An
assessment of the clarity of the projects
scope, the preparatory investments
made, and the physical preparation
completed. An ideally prepared project is
clearly defined and has all the necessary
preparatory work completed.
Project plan readiness: The availability
of project plan details and the projects
track record for staying on schedule.
An ideally prepared project is highly and
transparently detailed and has remained
on schedule since inception.
The criteria for the project complexity
dimension are:
Criteria coordination needs and
complexity: The availability of project
steering structures, the number of
countries and organizations involved,
and the clarity of responsibility
assignment. An ideal project will have
strong governing structures and a
minimum number of organizations
involved, each with a clearly defined area
of responsibility.
Technical demands and complexity: The
physical size of the project, the level of
technical complexity, and the level of
experience of the involved countries and
organizations with the project type.
22
5/3/13 5:24 PM
Lens B Project Value and

Impact
Figure 10: Breakdown of Lens B: Project Value and Impact

Dimensions
Lens B classifies projects according to the

value they are expected to produce on
completion, with the most valuable projects
shown in the upper right quadrant and less
valuable projects in the lower left quadrant.
Just as with Project realization readiness
and capacity in Lens A, project value
and impact has two aspects, which are
represented by the two axes of Lens B,
each of which uses a scale of 0 to 10 (see
Figure 10).
Axis iii: Direct Project Value
Direct project value is a measure of the
intrinsic (financial) value of a project on
completion, also taking into account
the projects likely effect on its regions
infrastructure project pipeline and its
exposure to risk.
A projects score on this aspect is generated
by the weighted sum of its score on three
dimensions: monetary project value,
strategic value and project-associated
risks. Those scores are generated by the
weighted sum of the projects scores on
a number of criteria (see Sidebar, Direct
Project Value). The individual criteria scores
are the weighted sums of the projects
scores on several specific metrics (see the
Appendix).
Axis iv: Project Impact and Secondary
Value Creation
Project impact and secondary value creation
is a measure of the benefits a project is likely
to create for its region. A projects score on
this aspect comes from the weighted sum
of its scores on three dimensions: economic
impact, social impact and environmental
impact. These scores are generated by
the weighted sum of a projects score on
a number of criteria (see Sidebar, Project
Impact and Secondary Value Creation). The
criteria scores are the weighted sums of the
projects scores on several metrics (see the
Appendix).
Aspect iii:
50%
Monetary project
value
20%
Strategic value
30%
Aspect iv:
Project impact &
secondary
value creation
100% Direct & related ancillary project monetary value

80%
Project associated
risks
Lens B:
Project value &
impact
50%
Criteria
Economic impact
20%
Social impact
30%
Environ-mental
impact
Sidebar: Direct Project Value

This aspect is assessed along six criteria
covering all key influences on a projects
intrinsic value.
The criterion for the monetary project value
dimension is:
Direct and ancillary project monetary
value: The value, availability and
consistency of key project financial data,
including profitability metrics.
The criteria for the strategic value
dimension are:
Market relevance and attractiveness: The
perception among potential investors
of the market relevance of the project
and its attractiveness. The ideal project
would be in a region and sector investors
regard as having strong growth potential.
Infrastructure project pipeline: The
potential for further interconnected
projects and the involved countries
and organizations track record for
Market relevance & attractiveness
20%
Infrastructure project pipeline
60%
Risk exposure & mitigation options
20%
Strength of sponsor/ sovereign
20%
Robustness of business case
40%
Direct community benefits
40%
Secondary industries
20%
Economic efficiency gain
50%
Local biodiversity sensitivity
50%
Emission impact
30%
Infrastructure accessibility
30%
Capacity building availability
40%
Additional local community impact
pipeline execution. The most strategically

valuable projects will create opportunities
for future related projects and will be
in regions with a good track record of
project completion.
The criteria for the project associated risks
dimension are:
Risk exposure and mitigation options: An
assessment of key project risks as well
as applicability and use of risk-mitigation
instruments. The ideal project has a
minimum number of clearly understood
risks and a complete array of riskmitigation tools
Strength of sponsor/sovereign:
The ability of the sponsor to fulfil
commitments and the level of trust that
project stakeholders have in the sponsor/
sovereign.
Robustness of business case: The
availability of business case materials,
the plausibility of the business cases
assumptions and the reliability of its
sources and calculations.
23
5/3/13 5:24 PM
Sidebar: Project Impact and

Secondary Value Creation
This aspect is assessed along eight criteria
covering all key influences on a projects
impact on its region.
The criteria for the economic impact
dimension are:
Direct community benefits: The projects
impact on public benefits such as
employment opportunities and public
revenue.
Secondary industries promotion: The
projects capacity to spur secondary
industry value creation.
Economic efficiency gain: The projects
impact on regional economic efficiency
through its effects on costs, speed,
supply security, etc.
The criteria for the environmental impact
dimension are:
Local biodiversity sensitivity: The projects
impact on local plant and animal life as
well as costs undertaken to mitigate
negative effects.
Emissions impact: Direct project
emissions as well as indirect effects,
e.g. through replacement of existing
infrastructure or changes in traffic
volume.
The criteria for the social impact dimension
are:
Infrastructure accessibility: The
accessibility as well as affordability of
new infrastructure benefits for local
people. The ideal project provides
widespread public benefits at low cost.
Capacity-building ability: Capacitybuilding opportunities, including the
beneficiaries of such opportunities. An
ideal project contributes dramatically to
the economic capacity of a region.
Additional local community impact:
Additional project impacts such as
possible resettlement or other effects
on cultivated areas, including mitigation
measures taken.
Applying the Lenses and Understanding

the Scores
While the overall score of a project in a
certain aspect gives a good idea of the
projects performance, it may also be useful
to look at a projects scores at the criteria
level. This offers a good basis for discussion
of the specific issues a project might be
facing and can help identify what needs to
be done to make the project more attractive
to private sponsor-led acceleration (see
Figure 11).
For instance, the project in this example
has a score of 5.5 (out of 10) for regional/
country readiness and capacity and 4.5 (out
of 10) for project readiness. Those scores
put the project in the centre of the project
realization readiness/capacity lens (Lens A),
meaning the project has fair do-ability.
Looking at the projects scores on a criteria

level and comparing those scores to the
average scores of other projects indicates
both the projects strengths and the areas
that need improvement to attract privatesector sponsors to accelerate it
(see Figure 12).
Figure 11: Scoring Example
Lens A
Project realization
readiness/capacity
Lens B
ii
iv
Project
readiness
Project
impact &
secondary
value
creation
24
On the project value and impact lens (Lens

B), however, the project shows a more
distinct profile. Direct project value is high
with a score of 8 while the project impact
and secondary value creation aspect is low
at 3. The projects location in the upper left
quadrant indicates a high-value project but
one with a limited positive impact on the
project environment.

capacity
Project value
creation & impact
iII
5/3/13 5:24 PM
Figure 12: Breakdown of Example Scores by Aspect
Regional/Country Readiness and Capacity
Project Readiness
Political project support
Pol. Stability
10
9
8
7
6
5
4
3
2
1
0
PPP
maturity
Access
to Labor
Economic
Stability
Rule of Law
Account.,
Trans.& C.
Bureau. &
redtape
Coordination
needs &
complexity
10
9
8
7
6
5
4
3
2
1
0
Project policy
environment
Physical
environment
Project plan
readiness
Ext. stakeholder
engage. & align.
Front-end loading/prerequisite fulfilm.
Gov. capacity
Example project
Technical demands
& complexity
Average
Example project
Average
In this example, the project outperformed other projects with

regard to political stability, accountability, transparency and
corruption. However, it showed weaknesses in PPP maturity and
access to labour. An effort to increase the do-ability of this project
should focus on increasing access to labour and implementing
best practices for PPP.
Regarding project readiness, the example project outperforms

the average in multiple dimensions (low coordination needs and
complexity, good external stakeholder engagement, favourable
physical environment). However, its score in the most heavily
weighted criteria, political project support and technical demands
and complexity, is below average, giving the project only an
average rating overall. Gaining additional political support is
necessary to improve the projects overall score significantly.
Direct Project Value
Project Impact
Direct & anc. Project

monetary values
Robustness of
business case
Strength of
sponsor/
sovereign
10
9
8
7
6
5
4
3
2
1
0
Direct community benefits

Market relevance
& attractiveness
Capacity building
availability
Infrastructure
project pipeline
Risk exposure & mitigation options

Example project
Additional local
community impact
Average
The direct project value of the example project is high, with an

aggregate weighted score of 8. This score is based on strong
direct and ancillary project monetary value, market relevance and
attractiveness, and low risk exposure/good mitigation options.
However, the projects strength of sponsor/sovereign and project
pipeline scores are below average.
10
9
8
7
6
5
4
3
2
1
0
Secondary
industries
Econ.
efficiency gain
Local biodiversity
sensibility
Infrastructure
accessibility
Emission impact
Example project
Average
The local community impact and secondary value creation scores

of the example project are below average. Employing potential
mitigation strategies to create community benefits will help improve
its score.
25
5/3/13 5:24 PM
IV. Project Preparation

and Financing
Infrastructure is one of the cornerstones of
a stable and productive society. Strategic
investments in transport, housing, energy
and communication infrastructure are
essential to create a strong and competitive
economy with good jobs and a high
standard of living. The African Development
Bank and World Bank estimate the
financing needs to be in excess of US$
93 billion per year (Foster and BriceoGarmendia 2010). A study by the
Programme for Infrastructure Development
in Africa (PIDA) on key regional projects,
endorsed by the 2012 African Union (AU)
Summit, estimates a need of US$ 68
billion up to 2020 just for that particular
list of projects. The need is particularly
stark in light of rising populations and
rapid urbanization on the continent. By
addressing fully its infrastructure deficit,
it is estimated that growth in Africa can
be boosted on average by about 2% per
annum.
The questions that have always been raised
in Africas case have centred around what
new sources of capital can be mobilized
and how to attract them to finance Africas
infrastructure needs. Radically new
financing methods have to replace or at
least complement traditional financing that
has proven its limits in mobilizing the funds
necessary to close the huge infrastructure
gap. Using innovative financing tools to
meet funding needs will be critical.
Of the US$ 93 billion in infrastructure needs,
just under half is currently financed, with
major sources being African governments,
multilateral and bilateral sources of finance,
official development assistance (ODA) and
private sector sources. These combined
sources, according to Africa Infrastructure
Country Diagnostics (AICD), contribute
approximately US$ 45 billion per annum,
leaving a yearly gap of US$ 48 billion.
Within the context of the changing
global economic landscape, a number
of fundamental shifts are currently
underway that not only threaten these
traditional sources of financing for African
infrastructure but also contribute to a
widening deficit. These shifts are impacting
traditional sources through the following
channels:
26
i. Official Development Assistance

(ODA) This assistance is increasingly
tentative and likely to decline in real
terms. With the combined effects of
the global financial crisis, and, more
recently, the Eurozone sovereign debt
crisis, the budgets of major donors that
have traditionally supported aid flows
to Africa are under pressure. Given
the widespread austerity measures
being implemented in these source
countries, a real decline in ODA is likely
to exacerbate the financing gap.
ii. Private Sector Shifts Traditionally,
commercial bank lending has been a
significant financier of African projects
and has also been a major participant
in loan syndications that have provided
senior debt facilities for term loans. With
the new structural shifts and changes
in bank regulations, such as the Third
Basel Accord, it has become expensive
for commercial banks, to continue in
this line of business given the increased
regulatory capital consumption
costs. This implies a scale-down in
commercial banks long-term lending
activities.
iii. Furthermore, there has been a decline
in monoline insurers such as MBIA Inc.
that traditionally used to guarantee
infrastructure bond issuance through
what were previously strong AAA
balance sheets. While this form of
financing was not particularly significant
for Africa, the decline of monolines
closes down what would have been
a potentially significant avenue for
innovation in African project financing.
As a result, the appeal of any future
infrastructure bonds for African projects
would need credit enhancement from
other sources such as donor funds
and the balance sheets of multilateral
development banks (MDBs).
Institutions such as MDBs now have a
bigger and growing role to play and need to
find new ways to redefine their roles in this
changing environment. They must create
new and relevant interventions not only
to mitigate the impact of these declining
financial flows, but also to find ways to
catalyse and push in new players so as
to scale up the overall level of financing,
particular to lower income countries (LICs)
on the continent.
Financing Dialogue
The financing stream of the African
Development Bank (AfDB)/World
Economic Forum Working Group on
African Infrastructure Financing (Financing
Dialogue) was asked to look into three
fundamental areas within the African
infrastructure financing space:
What new/innovative models are
relevant to finance African infrastructure
projects and how will/should they be
applied in the African context?
Which other entities/regions are
currently developing new/innovative
financing models that could be applied/
advanced in Africa?
How can the BWG contribute to the
development of the required new/
innovative financing models for the pilot
projects to be identified as part of this
work stream?
This brief attempts to address some of
these questions by providing an overview
of some of the innovations and new
products in African project finance and
other efforts currently under way to scale
up infrastructure delivery in Africa. The
following innovative products are assessed
in the context of African financing:
i. Infrastructure bonds: These come in
handy provided an investment grade
rating puts the project within the scope
of international institutional investors
who might otherwise be constrained by
their investment guidelines.
ii. Project preparation facilities: These are
important especially for projects at the
feasibility stage, for increasing the flow
of funds available in the critical early
stages of project development.
iii. Equity: This stream supports the raising
of debt finance, which would typically
cover only 60 to 80% of the cost of
constructing an infrastructure asset.
iv. Guarantee products: Guarantees such
as partial credit guarantee and partial
risk guarantee help leverage ADF
resources to mobilize private sector
financing of non-sovereign projects in
low-income countries.
5/3/13 5:24 PM
IV. Project Preparation and Financing
v. Other innovations: Several other

innovations are being examined by the
ADF, the concessional arm of the AfDB,
as part of its 13th replenishment in the
face of still significant unmet financing
needs.
A natural place to begin analysing the
application of these innovations is the
project finance value chain, as the issues of
financing relate not just to construction of
the infrastructure assets but both upstream
and downstream activities along the chain
as well. At various phases of the project
cycle, financing is required to significantly
de-risk projects further up the value chain
and, more critically, bring these projects
to bankability by performing the necessary
technical, financial, economic and
environmental due diligence. Bankability is a
key requisite for attracting the various pools
of global capital that will bring infrastructure
projects in Africa to fruition.
The project finance value chain describes

a set of key activities that illustrate the
life cycle of project development. It
disaggregates the process into the key
activities of development, construction,
completion, operations and maintenance.
Within each of these components, different
forms of financing are required. Typically,
when moving along the value chain, overall
de-risking takes place and a broader set of
financing opportunities becomes available.
An analysis of some of the financing
activities currently taking place in the
financing of African infrastructure projects is
presented in Table 1.
Table 1: Financing Activities over Project Cycle
Project Cycle
Risk Features
Development
The development phase takes the project

from the idea stage to bankability. The
main risk is that funds are used for feasibility, legal services, technical design and
other activities, but that the project does
not go ahead.
Construction
Completion
Operation
The risk of completing a project on time

and within budget is significant, even for
well understood technologies. Cost overruns or start-up delays can quickly erode
the economic performance of a project,
including preventing it from meeting its
debt-service obligations. Lenders require
construction to be either carried out by a
reputable EPC contractor at a fixed-price,
time-certain basis, or be guaranteed.
Finance
Providers (include)
Sponsor/ Developer
Equity
InfraCo Africa, Infra Ventures, AFC,

Transcentury, IPS, Transcorp, Aldwych,
Globeleq, Sithe Global, Agua Imara, Tata,
Sino Hydro, Biotherm, Symbion, Aeolus,
Amaya, Cluff Geothermal, Ormat, Kenergy and AER
Other operators such as utilities, telecom
operators and port operators (Maersk,
Hutchison, etc.)
Bridge Financing
Limited instances of banks/ DFIs providing bridge loans
Construction Equity
Developers/operators also provide construction equity

Funds: PAIDF, AIIF, SSIF
Development Finance Institutions (selected)
Construction firms such as Oderbrecht,
Orascom
Construction Debt
DFIs, plus debt funds (EAIF and the ICF

Debt Pool)
Export Credit Agencies and ExportImport Banks
African and international banks
Some pension funds such as Old Mutual
Once a project is complete, it is largely

de-risked. However, aspects of project
economics are still unknown, including
uncontrollable operating costs and market demand.
In some markets, infrastructure private

equity funds and sovereign wealth funds
tend to invest in low-risk completed projects, e.g. GIC of Singapore
Secondary Market:
Revenues and costs become better
Equity
known once a project is commercially op- Debt
erational. The operational performance of
a company against contractual/commercial targets becomes the main risk. Lenders derive comfort from the experience of
the operator in managing performance.
Debt can be refinanced in international or

local loan or bond markets, depending
on market appetite and conditions. Bank
portfolios can be aggregated, such as
South African banks book of renewable
IPP projects.
Source: Structured Finance Conditions for Infrastructure Project Bonds in African Markets, AfDB (2013)
27
5/3/13 5:24 PM
In the African context, two particular

applications of these bonds exist:
Figure 13: The Typical Project Finance Structure
i. Domestic Capital Markets

Government
Equity/Golden Share
Debt Guarantees
Concession
Agreement
Recourse Agreement
Equity investors
Sponsor ( developer ,
construction firm, etc.)
Infrastructure funds
Institutional investors
Debt investors
DFIs /ECAs /MDBs
Commercial banks
Capital markets
Guarantees
Subsidies
Off-take Agreement
20-40%
SPV
Project assets and
cash-flows
Dedicated Governance
and Management
60-80%
Financing Agreement
Off-takers
Utilities
Industrial firms
Government (Availability
Payment)
EPC Contract Supply

Agreements
Other Counterparties
EPC Contractors
Equipment suppliers
Input suppliers
Source: Structure Finance Conditions for Infrastructure Project Bonds in African Markets, AfDB (2013)
Project finance has been a very commonly

tried and tested structure in infrastructure
financing. It is characterized by a system
of support and risk-mitigation mechanisms
as illustrated in Figure 13 that address
certain key risks that otherwise could not
be financed on a stand-alone basis. Project
finance enables sponsors who do not have
a large balance sheet to undertake large
and ambitious investments
Product Innovations that Can Be

Applied in the African Context
Infrastructure Bonds
One innovative instrument that has been
used in other emerging markets is the
project or infrastructure bond. This is
particularly suited to infrastructure finance
as many transactions are using project
finance and hence the bond is merely an
instrument that would work as a project
loan. This form of financing is issued
directly by a Special Purpose Vehicle
(SPV) whose cash-flow obligations are
repaid directly from the cash flows of the
operational project. While the credit quality
of the sponsors may in some ways affect
the credit quality of the SPV, a project bond
does not rely directly on the credit quality of
the balance sheet of the sponsors.
In the AfDB report on Structured Finance

Conditions for Infrastructure Project Bonds
in African Markets, such infrastructure
bonds are defined as having the following
attributes:
They are issued to raise capital for
specific stand-alone projects.
They are repaid from cash generated by
the project.
They assume, and their performance is
subject to, certain project-specific risk.
This definition, therefore, can include
projects with participation by government,
parastatals and private entities to ensure
optimal allocation for risk for potential
bondholders and efficient financing of
important infrastructure projects.
The typical applications of this product are
mainly in the operations phase of a projects
life cycle where it has been substantially derisked and operations cash flows are more
certain, and the project is able to meet
the contractual debt service obligations of
publicly-issued bonds. These will not be
ideal in the construction phase, given that
most cash flows are outbound.
One of the key objectives of the AfDB

study on structured finance is to consider
whether domestic capital can play a role
in meeting the infrastructure funding gap.
The attraction of domestic capital is that it
can help mitigate currency risk and often
has a better understanding of operational
and political risks. Domestic funding has
become significant in other emerging
markets too, most notably Latin America
and Asia.
Project bonds have been widely used
in other countries, most notably Chile,
Malaysia and Korea.15 In each case, the
government implemented reforms in the
pension and insurance sectors to unlock
long-term capital. This created a deep pool
of institutional investors with demand for
low-risk, long-dated assets in the domestic
currency. This investor base is ideally suited
to buying project bonds or infrastructure
investments. That they have a preference
to invest in the local currency means
the projects could avoid any currency
mismatches between revenues and debt
service obligations. In addition to policies
to develop an institutional investor base,
these governments also implemented
crucial economic policies that prioritized
macroeconomic stability, particularly by
bringing down inflation and prevailing
interest rates. Indeed, in Chile policymakers undertook broad-based indexation
of the economy, which gave fixed-income
investors additional comfort in holding
long-term assets. This was an innovative
solution, and though it may or may not
be adopted by others, it shows that it is
important is to have a long-term strategy
of seeking economic stability and creating
institutions that will accumulate capital and
focus on long-dated assets.
The pools of African capital are substantially
growing with Africas economy, and as
such capital markets have a substantially
wider investor base. Table 2 below lists
some of the key pension funds players by
country, resource base and potential.
ii. International Capital Markets
Recent experience shows there is a
strong appetite for African sovereign risk
in the global capital markets. Developed
market bond yields are low or subject to
significant event risk (e.g. the Euro crisis).
The credit profiles of African countries
have improved significantly on the back of
consistently high GDP growth rates. The
global investor base is more open to African
credits than ever before. This has been
well underlined by the successful bond
offering by Zambia recently, which was
28
5/3/13 5:24 PM
Table 2: Summary of Selected Pension Sectors
Country
Regulator
Concentration
Assets
Corporate Bonds
Kenya
Retirement Benefits
Authority (RBA)
17 fund managers
US$ 5 billion
Can hold up to 30% of portfolio, but

currently 6%
Uganda
Retirement Benefits
Regulatory Authority
NSSF accounts for 95%

of pension assets
US$ 800
million
NSSF holds 2.5% of assets in corporate

bonds
Tanzania
Social Security Regulatory

Authority
Five largest funds

account for 60% AUM
US$ 2.1 billion

(i)
New guidelines put 30% limit on

corporate bonds
Nigeria
National Pension
Commission (PenCom)
Top 3 control 55% assets; top 5 control 69%
US$ 14.3
billion
35% limit on non-sovereign bonds;

currently holds 2.5%
Ghana
National Pensions
Regulatory Authority
SSNIT dominant; 14
PFAs (Pension Fund Administrators) registered
for new fund
US$ 2 billion
30% limit; currently no corporates in

market
South Africa
Financial Services Board
GEPF has c.37% assets;

competitive private FMs
US$ 312 billion
Regulation 28 allows 100% investment in

fixed income corporate bonds
Namibia
NAMFISA
GIPF has 82% assets;

Largest PFA has 60%
US$ 8.5 billion
Permissive regulation allows corporate

bonds
Botswana
Non-Banking Financial
Institutions Regulatory
Authority
BPOPF is largest fund;

no data for others
US$ 5.6 billion
Permitted but limited availability in BWP
Zambia
Pension and Insurance

Authority
NAPSA and AfLife are

around 80% of market
US$ 2 billion (ii)
20% in a single sector
NSSF has 1/3rd assets
Note: (i) denotes 2010; RBA Kenya, Nigerian Pension Commission (Pencom), SSNIT, Ghana excludes GNAT; Financial Services Board (RSA), Botswana International Financial Services Centre, (ii) Conservative estimate: could be up to ZMK 20trn
Source: OECD, WDI, IOPS, Africa Report (Oct. 2012), Discussion with Market Actors
upsized from the initial target size of US$

500 million to US$ 750 million and was
hugely oversubscribed. The performance of
outstanding issues from the likes of Ghana
and Nigeria is also testament to this.
International capital markets represent the
largest pool of funds; however, international
investors typically lend in US dollars or
euros, which creates significant exchange
rate risk for the issuing country.
At the international level, however, it is
critical that the infrastructure bond issuance
has an investment grade rating by at least
one of the major rating agencies such as
Fitch, Standard & Poors and Moodys.
This ensures that the issue is available
to a wide investor base which will also
open the bond up to an active secondary
market. However, given the risks in African
project finance, credit enhancements may
still be needed to bring these bonds to
investment grade. With the decline of the
major monoline insurers, the remaining
likely source of these enhancements will be
MDBs such as African Development Bank
(through products such as partial risk or
credit guarantees).
Project Preparation Facilities

Project preparation is critical to moving
projects to bankability. This need has been
recognized across Africa. A recent study
on project preparatory facilities by the
Infrastructure Consortium for Africa (ICA),
an initiative funded by multiple donors with
the mandate to help mobilize resources
for financing infrastructure in Africa, found
that there are as many as 67 project
preparation facilities in Africa or targeted at
Africa. However, of these, only a handful
are considered viable due to limitations of
finance, skills and institutional capacity.
The AfDB hosts the NEPAD Infrastructure
Project Preparation Facility (NEPAD-IPPF),
which supports preparation of mostly
regional projects. During 2011, NEPADIPPF prepared a Strategic Business
Plan (SBP) for the period 2011-2015,
which articulates an ambitious fouryear programme requiring around US$
200 million to support regional project
preparation, mainly for PIDAs Priority
Action Plan. The leverage effect of project
preparation cannot be over-emphasized.
For example, by the end of 2011, 13
projects completed by NEPAD-IPPF
had leveraged US$ 5.717 billion for
implementation.
It is therefore not surprising that a number

of regional economic communities (RECs)
have set up or are setting up their own
project preparatory facilities. The tripartite
involving the Common Market for Eastern
and Southern Africa (COMESA), the
East African Community (EAC) and the
Southern African Development Community
(SADC) has established the Project
Preparation Implementation Unit housed
at the COMESA Secretariat in Lusaka.
The Economic Community of West African
States (ECOWAS) is in the process
of setting up the Project Preparation
and Development Unit as a vehicle to
prepare projects. Ensuring synergies and
complementarities across existing and
emerging project preparation facilities will
be important going forward. Additionally,
these new institutions should be adequately
resourced both in terms of financing and
skills.
Equity
Development equity and construction equity
are crucial forms of finance applicable at
the development and construction stages
of project development, respectively.
During project development, equity capital
is required as projects remain far from
29
5/3/13 5:24 PM
operation and thus highly risky, with a

reasonable chance of not going forward.
During construction, projects need equity
as well as bridge and term loans from
lenders comfortable with construction
risks. Subsequently, once construction is
completed and there is more certainty on
operational and market conditions, projects
are considered to be de-risked and can
be refinanced using new debt and equity
investors. At each stage of the project,
there is the risk that financing may not be
raised or the costs of finance may spiral
out of control, giving rise to refinancing and
liquidity risks.
Project development costs around 10-12%
of total project costs, according to the ICA.
The earlier stages of project development
are particularly risky. The very early stage
of the project cycle tends to be supported
by technical assistance grants, or vehicles
such as InfraCo and Infra Ventures backed
by a development agency. It is extremely
difficult to recover these costs on a
commercial basis since returns would have
to be 30% or more over a five-year period.
For example, InfraCo makes a large loss
on its capital even though it operates on a
commercial basis.
Equity at financial close is also usually
provided by developers, as well as other
consortium partners such as development
finance institutions e.g. DEG (German
Investment and Development Corporation),
FMO (Netherlands Development Finance
Company), AFD (French Development
Agency) and IFC (the International Finance
Corporation) are investors in Rift Valley
Railways and, sometimes, utilities and
construction partners. Private equity
investors tend to target returns of 20-25%,
exiting once projects are fully commercially
operational and de-risked (2-3 years
post-completion). Development finance
institutions target a similar strategy, albeit
with a range of 15-25% returns. Developers
and equity investors alike emphasize
project execution and the value created by
getting projects fully operational.
Guarantee Products (e.g. Partial Credit
Guarantee, Partial Risk Guarantee)
A guarantee is an undertaking by a third
party (guarantor) to fulfil the obligations of a
borrower to a lender under an agreement,
in the event of non-performance or default
by the borrower. The underlying causes
of default are defined ex ante as either
commercial or political risks. Guarantees
can generally be classified into two
categories: partial credit guarantees (PCGs)
and partial risk guarantees (PRGs).
i. Partial Credit Guarantees
PCGs cover a portion of scheduled
repayments of private loans or bonds
against all risks. They could be utilized to
30
support mobilization of private funds for

project finance, financial intermediation
and policy-based finance. PCGs can
be used for both public and private
sector investment projects, especially in
infrastructure, to encourage the extension
of maturity and to improve access to capital
markets. The guarantee could cover the
principal for bullet maturity of corporate
bonds, or later maturity principal payments
of amortizing syndicated loans.
ii. Partial Risk Guarantees
PRGs cover private lenders against the
risk of the government, or a governmentowned agency, failing to perform its
obligations vis--vis a private project.
PRGs can attract commercial financing in
project finance transactions, particularly in
public sector utilities such as power, water,
oil and gas, and mining, where project
success depends as much on government
undertakings as on private commercial
acumen. In public-private partnerships
(PPPs), PRGs can give assurance to the
private partners that government will meet
its obligations toward the partnership.
These guarantees can cover a variety of
government risks, including government
contractual payment obligations,
availability and convertibility of foreign
exchange, changes in law, expropriation
and nationalization. The commercial risks
under PRGs are fully borne by the private
investors.
Other Innovations
The models described below are some
of the new financing innovations being
put forward in the context of the 13th
replenishment of the African Development
Fund (ADF). These products are
prospective and will be subject to final
approval, but for Africa, such innovations
will be instrumental in leveraging
concessional resources to have a greater
catalytic effect and impact in financing.
i. ADF Loan Buy-Down
The ADF Loan buy-down facility would offer
to donor countries and other interested
parties the possibility of prepaying to the
ADF the outstanding amount of a loan (or
particular set of loans) owed by a given
ADF country. This prepayment could target
loans for projects in specific sectors or
with specific objectives such as renewable
energy, environment, education, water and
poverty reduction. These initiatives could
also be tied to conditions, obligating the
beneficiary country or selected project to
meet certain landmarks and objectives
before the pre-payment could take place.
The fund could then recycle the prepaid amounts through the general ADF
financing window. The main benefits would
be additional resource mobilization and
enhancing the funds profile as one of the
premier channels of aid and concessional

finance into Africa.
ii. Partial Credit Guarantees
Partial credit guarantees are currently
offered by the ADB to middle-income
countries. The new innovation is to use
concessional resources to create a product
offering for low-income countries as well,
and will be extended to African countries
on a pilot basis. This product covers
commercial lenders against all risks of debt
service default on a specified portion of
commercial/private debt (bonds and loans)
and can be used to mobilize commercial
financing for project finance, financial
intermediation and policy-based finance.
Similar to the ADF Partial Risk Guarantee,
the ADF PCG would be structured as a
leveraged instrument that would consume
only a fraction of the countrys Performance
Based Allocation.
An ADF PCG would enable ADF countries
or their public/state institutions to access
commercial finance only for a limited
number of priority sectors like infrastructure
and agriculture or for domestic resource
mobilization. The key issues to address
while implementing PCG are associated
with defining stringent eligibility
criteria that take into account country
indebtedness, debt management capacity
and compliance with the Banks NonConcessional Debt Accumulation Policy.
iii. Private Sector Matching Fund
In the last replenishment of the fund
i.e. ADF-12, the possibility was created
for ADF countries to use part of their
performance-based country allocation for
equity investment in PPP projects. A Private
Sector Matching Fund is a new financial
envelope that builds upon this arrangement
by providing additional loans or grants to
eligible countries for the same purpose.
The facility would encourage borrowing
countries to develop more public-private
partnerships. The Matching Fund would
match the governments contribution in
equity for a PPP in that country or region,
provided that the government is able to
confirm the participation of a minimum of
twofold contribution from the private sector
to the equity of the PPP. It would serve as
an incentive to governments to collaborate
and co-invest with private investors to
develop PPPs in infrastructure and other
key areas of the economy and lead to
inclusive growth. The debt would come
from a combination of public and private
financiers.
5/3/13 5:24 PM
iv. Development Finance Institution

(DFI) Facility
This would include two key instruments:
Partial risk guarantee to enhance the
obligations of African regional and
sub-regional DFI member-countries to
promptly pay their respective pro-rata
share of callable capital in case there
is a first call. This would lead to an
improvement in the credit rating of the
DFIs, which in turn would improve the
terms of their fundraising activities from
commercial lenders. The DFI partial risk
guarantee would be different from the
ADF partial risk guarantee as it would
be extended to government-owned
DFIs, as opposed to regional member
countries themselves.
Equity financing to provide concessional
financing (loans or grants) to regional
and sub-regional DFIs member
countries to finance an increase in
paid-in capital and clear arrears on
capital instalments due, particularly for
fragile states. This would improve DFI
creditworthiness.
Conclusions
The above innovations, if implemented and
fully utilized in African infrastructure finance,
would help move more and more African
projects across the value chain. The African
Development Bank has also been looking
to create a broad infrastructure financing
facility with an array of activities covering
advisory services, development equity,
lending and guarantee to help scale up and
complement existing facilities within African
infrastructure financing. This facility would
not just be a financing mechanism but also
a vehicle through which impediments and
bottlenecks in the African project finance
value chain would be addressed.
31
5/3/13 5:24 PM
Appendix
Two-Lens Clustering Criteria Metrics
Lens A: Project Realization Readiness and Capacity
Aspect: Regional/Country Readiness and Capacity (Axis i)
The criteria used to quantify this aspect are derived from the metrics described below. Regional/country readiness capacity is different
from the other aspects used in the two lenses in that it is largely based on hard historical data. The metrics should be updated as
necessary when new information becomes available.
For purposes of calculating numerical criteria scores, the metrics which are indices are normalized to a scale of 0 to 10.
Criteria
Assessment
Metrics and Sources
Access to labour
PPP maturity
Total private investment in sectors considered in PIDA (data from Public-Private Partnership Advisory Facility, 2011)
Investment in projects cancelled or in distress as a percentage of total investment (Public-Private Partnership
Advisory Facility data, 2011)
Bureaucracy and
red tape
Bureaucracy and red tape (Economist Intelligence Unit expert assessment, 2011)
Government
capacity
Quality of public administration (World Bank and AfDB indicators, 2011)

Effective power to govern (Bertelsmann Transformation Index, 2012)
Accountability,
transparency and
corruption
Prosecution of abuse in office (Economic Intelligence Unit expert assessment, 2010)

Accountability, transparency and corruption in the public sector (AfDB expert assessment, 2011)
Accountability of public officials (EIU expert assessment, 2010)
Corruption in government and public officials (EIU expert assessment, 2010)
Access to labour
Tertiary enrolment (UNESCO data, 2006-2011)

Availability of scientists and engineers (Forum perspective 2011-2012)
Quality of math and science education (Forum perspective 2011-2012)
Rigidity of employment index (Difficulty of redundancy index + difficulty of hiring index + rigidity of hours index)
(World Bank expert assessment and surveys, 2010)
PPP maturity
Total private investment in sectors considered in PIDA (Public-Private Partnership Advisory Facility data, 2011)
Investment in projects cancelled or in distress as a percentage of total investment (Public-Private Partnership
Advisory Facility data, 2011)
32
Tertiary enrolment (UNESCO data, 2006-2011)

Availability of scientists and engineers (Forum perspective, 2011-2012)
Quality of math and science education (Forum perspective, 2011-2012)
Rigidity of employment index (Difficulty of redundancy index + difficulty of hiring index + rigidity of hours index)
(World Bank expert assessment and surveys, 2010)
5/3/13 5:24 PM
Aspect: Project Readiness (Axis ii)

The metrics for the criteria of this aspect are assessments by experts. Multiple experts should be used to help reduce the element of
subjectivity. Experts should use as much hard data as possible for forming their assessments. The point-ranking scale may be adjusted
as necessary to more accurately reflect the projects local environment.
Criteria
Assessment
Very low (0 points)
Low (3 points)
Average (5 points)
High (7 points)
Very high (10 points)
Political
project
support
Discouragement
from country
leadership
Strong tensions/
disagreement
between countries
involved
No visible interest
in project from
country leadership
Missing alignment
within country
Limited
disagreement
between countries
involved
Unspecific,
inconsistent
support from
country leadership
Alignment between
involved countries
lacking
Support expected
but no clear
commitment/
unsteady
commitment in the
past
Overall alignment
of involved
countries
Steady support/
championship by
head of state
Written agreement
of all involved
countries
Public support
across hierarchies
Project
policy
environment
Detrimental policy
environment
Significant hurdles
(e.g. restrictions
on operation,
uncommon
taxation)
Generally
unfavourable
environment
Some limited
hurdles
Neutral policy
effect on project
Generally
favourable, stable
environment
Very favourable
policy environment
Tangible support
(e.g. subsidies)
Policies stable/
direction positive
Physical
environment
Project location
with strong
negative cost
impact
Significant hurdles
for implementation
(e.g. lack of local
infrastructure/
access to project
location)
Location
with strong
environmental/
social concerns
Limited unusual
hurdles resulting
in additional
supporting work
Costs above
average
expectations
Challenging
environmental/
social concerns
Supporting
work need in
line with general
expectations
Costs in line with
average project
costs
Environmental/
social concerns
manageable
Limited need for

supporting work
due to project
location
Better than
average negative
cost impact
Only minor
environmental/
social concerns
Ideal location for

project, no need
for supporting
work
Infrastructure in
place at project
location
Location free of
environmental/
social concerns
External
stakeholder
engagement
and
alignment
Key stakeholders
not involved/
engaged
Significant
resistance from
stakeholder groups
Limited and
inconsistent
stakeholder
engagement
Unfavourable
project opinion,
resistance likely
All key
stakeholders
contacted at one
point in project
Neutral response,
limited resistance
expected
Engaged, broad
stakeholder group
Generally
favourable
response, very
limited resistance
expected
Broad, continuous
stakeholder
engagement
Strong support
for project
from external
stakeholder
33
5/3/13 5:24 PM
Criteria
Assessment
Very low (0 points)
Low (3 points)
Average (5 points)
High (7 points)
Front
loading/
prerequisite
fulfilment
Missing/
inconsistent
project scope
Idea stage
project with key
characteristics
missing
Physical
preparation not
given (e.g. site
readiness)
Unclear
preparation
investment needs
Unclear scope
definition, limited
documentation
Most key project
characteristics
given
Physical
preparation behind
expectations
Preparatory
investment needs
appear unrealistic
Phase-appropriate
project scope,
documentation
available
All key project
characteristics
given
Only limited
physical hurdles
for project
progression
Preparatory
investment needs
clear
Consistent,
phase-appropriate
project scope,
documentation
in line with global
standards
Relevant project
characteristics in
place
No physical
hurdles for project
progression
Clear, well-defined,
consistent scope
of given project
phase
World-class,
reliable
documentation
Project
characteristics
defined and
expected for given
project phase
No physical
hurdles
Project plan
readiness
No project plan
available
In the past
significant delays
in project plans
stuck project
Outdated, highlevel project plan/

timeline
Time
estimates with
undocumented
basis
Project
progression has
been behind
schedule in the
past
High-level, recent
project plan/
timeline in place
Time estimates
considered realistic
Limited delays in
project progression
in the past
Coordination
needs and
complexity
Missing project
steering structure
No (or rivalling)
project
implementation/
management
entities
Very high number
of involved
countries with
diverse interests
Numerous
regional economic
communities
involved with
unclear division of
responsibility
Management entity
in place, missing
implementation
mandate, potential
lack of resource/
experience
High number of
involved countries
Multiple regional
economic
communities
involved
Untested steering
structure
Technical
demands
and
complexity
Significant,
inherent technical
complexity
Limited
experience,
unparalleled
project type
Very large project
size
High technical
complexity
Limited experience
for project type
implementation
Above average
project size
34
Detailed project
plan and up-todate timeline
Reliable timelines
with clear basis
Only minor
delays in project
progression in the
past
Detailed, clear,
up-to-date project
plan/timeline
Well-grounded
estimate for
implementation
time
Deadlines/plans
met in the past
Management/
implementation
entity in place
Multiple regional
economic
communities
involved, clear lead
and division of
responsibility
Project steering
structure in place
Established,
sufficiently
resourced/
experienced
management/
implementation
entity
Clear project
steering structure
Limited number of
involved countries
Well resourced,
experienced
management/
implementation
entity
Relatively low
number of involved
countries
Proven, effective
project steering
structure
Technical project
complexity in line
with expectations
Proven concept
with several
comparable
successful projects
Medium project
size
Inherent technical
demands
considered rather
low
Established
track record
in comparable
projects
Below average
project size
Standard
technical project
with proven
concept and low
complexity
Significant local
experience in
project type
implementation
Limited project
size
5/3/13 5:24 PM
Lens B: Project Value Creation and Impact

Aspect: Direct Project Value (Axis iii)
The metrics for these criteria are concerned with a projects monetary value. Note that the metrics that positively co-relate with value are
scored on an ascending 0 to 10 scale while the criteria that measure risk are scored on a descending 0 to 10 scale. There is a strong
focus on monetary value.
Assessment
Criteria
Very low
(0 points)
Low
(3 points)
Average
(5 points)
High
(7 points)
Very high
(10 points)
Direct &
related
ancillary
project
monetary
value
Key project data

not available/high
variations
Project
unprofitable,
believed to
generate very
limited income
streams
No hard financial
data/ proxies
available, but
possible to
estimate using
benchmarks
Project possibly
below profitability
expectations,
limited income
streams
Low potential for
ancillary monetary
value creation
Basic financial
data/ proxies
available
Project profitability
in line with
expectations,
project supported
through sufficient
income streams
Potential for
ancillary monetary
value creation, but
limited data
Limited set of
reliable financial
data available,
proxies used
Project likely to be
profitable, showing
comparably high
inherent value/
income streams
Available data
suggests good
ancillary monetary
value creation
potential
Transparent,
reliable financial
data available
Data shows
comparable
project with very
strong inherent
value/income
streams
Well-documented,
reliable information
on comparable
project, very high
ancillary monetary
value creation/
income streams
Market
relevance
and
attractiveness
Market seen as
offering very limited

value, not seen as
a focus market
Market showing
very below
average attractiveness indicators
(e.g. GDP, per
capita income)
Infrastructure
project
pipeline
No or unreliable
project pipeline for
the region
Negative track
record of realizing
project pipeline
development
Market seen as
offering limited
value
Market showing
below average
attractiveness
indicators (e.g.
GDP, per capita
income)
Unclear project
pipeline for the
region
Mixed track record
for past project
realization
Pipeline projects of
limited interest/not
comparable with
current project
Market value seen

as average, focus
market for a limited
set of parties
Market showing
average
attractiveness
indicators (e.g.
GDP, per capita
income)
Project pipeline in
place
Overall good track
record for project
realization in the
past
Pipeline projects
of average
interest/ generally
comparable with
current project
Market seen as
offering value, seen

as a focus market
by numerous
parties
Market showing
above average
attractiveness
indicators (e.g.
GDP, per capita
income)
Reliable project
pipeline in place
Above average
track record for
project realization
Pipeline projects
seen as valuable
to broad range
of parties,
comparable to
project at hand
Highly valuable
market, key priority
market for a broad
range of parties
Market showing
highly above
average attractiveness indicators
(e.g. GDP, per
capita income)
Region with clear,

well-prepared
infrastructure
pipeline
Excellent track
record of realizing
project pipeline
development
Key future projects
in pipeline
35
5/3/13 5:24 PM
Assessment
Criteria
Very low
(0 points)
Low
(3 points)
Key documentation Basic business

not in place
case relying
Estimates with
on proxies/
unexplained high
benchmarks
variances
Some assumptions
Key assumptions
questionable
questionable
Sources with limited
Sources unknown
experience
High
(3 points)
Inadequate
Incomplete
Risk
exposure and
information
knowledge of
mitigation
available on key
project risks
options
At least one
project risks
Multiple key project
key project risk
not covered
risks not covered
by mitigation
by mitigation
instruments
instruments
Robustness
of business
case
Average
(5 points)
High
(7 points)
Very high
(10 points)
High-level
documentation of
business case
All key data
plausible and with
reliable sources
Calculations
considered reliable
Average
(5 points)
Good
understanding of
project risks
All key project
risks covered
by mitigation
instruments
Remaining
risks seen as
manageable
Business case
missing minor data
Plausible,
consistent
calculations
Sources for main
assumptions
documented
Low
(7 points)
Project risks well
understood
Limited key
risks, all covered
by mitigation
instruments
Limited overall risk
exposure
Business case seen

as very reliable
Prepared by trusted
party, potentially
reviewed
In general very
plausible, reliable
data used
Very low (10 points)
Project risks
analysed and well
documented
All existing risks
considered
manageable,
risks well-covered
by mitigation
instruments
Aspect: Project Impact and Secondary Value Creation (Axis iv)

The metrics underlying these criteria measure a projects effect on the public and the environment. Note that metrics of environmental
impact are ranked on a descending 0-10 scale, with the most negative environmental effects ranked 0 and the least ranked 10.
Assessment
Criteria
Very low
(0 points)
Direct
community
benefits
(i.e.
employment,
public
revenue)
Potential for
secondary
industries
Negative impact
(i.e. loss of
employment
opportunities,
deterioration of
local livelihood)
No or negligible
effect
Deterrence
of secondary
industries
No effect or
negligible effect
Decreased
efficiency
(i.e. increased
costs, process
slowdowns)
No effect or
negligible effect
Economic
efficiency
gains (i.e.
speedier
processes,
lower costs,
increased
supply
security)
Infrastructure
accessibility
Capacitybuilding
ability
No capacitybuilding effect
36
No usage benefit
for local people
Low (3 points)
Average (5 points)
Low effect in most

areas
No area with strong
positive effect
Medium effect
across areas
Strong positive
effect in single area
High (7 points)
Strong effect in
some but not all
areas
Strong positive
impact across most
areas
No areas negatively
or not affected
Limited potential
Medium potential
Good potential in
single sector
Good potential
Very strong
potential in single
sector
Very strong
potential for diverse
sectors
Limited effect on
efficiency
Medium effects in
several areas
Strong gains in one
area
High efficiency
gains
Potential
attractiveness for
businesses
Very strong gains in

several areas
Significantly
increased
attractiveness for
businesses
Accessibility for a
significant number
of people
Costs affordable
by local majority
standards
Accessibility
ensured for entire
local population
Negligible cost or
free of charge
Medium capacity
building at local
level
Including nonemployees
Large-scale
capacity building
Including nonemployees
Beyond local level
(e.g. sponsorship
of university
programmes)
Accessibility only for

small minority
Affordability only for
small minority
Widely spread
accessibility,
affordable only for
some
Affordable pricing,
but access locally
restricted
Only secondary
Limited capacity
effects (i.e. allowing
building
easier access to
Only for project
education from
employees
other sources)
5/3/13 5:24 PM
Criteria
Local
community
impact (i.e.
resettlement, impact
on cultivated
or cultural
areas)
Assessment
Very low (0 points)
Low (3 points)
Average (5 points)
High (7 points)
Negative effect
(i.e. resettlement
for large number of
people, destruction
of farmland)
No effect or
negligible effect
Low effect in most

areas
Some negative
effects, met with
creation of new
positive impacts
Medium effect
across areas
Strong positive
effect in single area
Strong positive
effect in some but
not all areas
All potential
negative aspects
clearly counterbalanced (e.g.
irrigation scheme
for new agricultural
sites)
Strong positive
impact across
most areas
No effect or no
aspect negatively
affected
High (3 points)
Average (5 points)
Low (7 points)
Very low (10 points)
Local
biodiversity
sensitivity
Clearly negative
impact
Uncertain impact
Very difficult
mitigation, or no
mitigation possible
Serious, but clearcut impact

Manageable, but
potentially costly
impact
Clear-cut impact
Manageable
effects
Limited effects
Easily manageable
No effects or
negligible effects
Emissions
impact
Small increase in
emissions
Indirect increase
in emissions (i.e.
increased traffic)
Similar to generally
projected
development
No change on
emissions balance
Improvement in
emissions balance
Emissions-free
project
Significant
improvement in
emissions balance
Significant
increase in
emissions
37
5/3/13 5:24 PM
List of Figures
Figure 2: Annual Infrastructure Spending by Sources Compared

to Needs 2020
Figure 3: Annual Infrastructure Spending Requirements in the

Developing World
Figure 4: Overview of Business Working Group Members
Figure 5: Four Steps of Project Selection Methodolog
Figure 6: Initial Grouping Thresholds
Figure 7: Example of Two-Lens Project Clustering
Figure 8: Two-Lens Clustering Example
Figure 9: Breakdown of Lens A: Project Realization, Readiness

and Capacity
Figure 10: Breakdown of Lens B: Project Value and Impact
Figure 11: Scoring Example
Figure 12: Breakdown of Example Scores by Aspect
Figure 13: The Typical Project Finance Structure
List of Tables
Sidebar 1: Overview of 51 PIDA PAP Programmes/Projects
Sidebar 2: Threshold-Based Grouping of Key Data
Sidebar 3: Simplifying the Methodology
Sidebar 4: Regional/Country Readiness and Capacity Criteria
Sidebar 5: Project Readiness Criteria
Sidebar 6: Direct Project Value
Sidebar 7: Project Impact and Secondary Value Creation
Table 1: Financing Activities over Project Cycle
Table 2: Summary of Selected Pension Sectors
Aspect 1: Regional/Country Readiness and Capacity (Axis i)
Aspect 2: Project Readiness (Axis ii)
Aspect 3: Direct Project Value (Axis iii)
Aspect 4: Project Impact and Secondary Value Creation (Axis iv)
38
5/3/13 5:24 PM
List of Abbreviations
ADF
African Development Fund
AFD
French Development Agency
AfDB
African Development Bank
AICD
Africa Infrastructure Country Diagnostics
ARTIN
African Regional Transport Infrastructure
Network
AU
African Union
AUC
African Union Commission
AUM
Assets Under Management
BOOT
Build, Own, Operate and Transfer
BPOPF
Botswana Public Officers Pension Fund
BWG
Business Working Group
CAF
Central African Republic
CAPP
Central African Power Pool
CEEAC
Economic Community of Central African States
(ECCAS)
CEN-SAD
Sahel-Saharan States
COMESA
Common Market for Eastern and Southern
Africa
DBSA
Development Bank of South Africa
DEG
German Development and Investment
Corporation
DFI
Development Finance Institution
DRC
Democratic Republic of Congo
EAC
East African Community
EAPP
Eastern African Power Pool
EBID
ECOWAS Bank for Investment and
Development
ECCAS
Economic Community of Central African States
ECOWAS
Economic Community of West African States
EIB
European Investment Bank
FMO
Netherlands Development Finance Company
GDP
Gross Domestic Product
GEPF
Government Employees Pension Fund (South
Africa)
GIPF
Government Institutions Pension Fund (Namibia)
GNAT
Ghana National Association of Teachers
GSM
Global System for Mobile Communications
IATA
International Air Transport Association
ICA
Infrastructure Consortium for Africa
ICAO
International Civil Aviation Organization
ICT
Information and Communications Technology
IFC
International Finance Corporation
IFI
International Financial Institution
IGAD
Intergovernmental Authority on Development
IPP Independent Power Producer
IPPF
Infrastructure Project Preparation Facility (of the
NEPAD)
IXP
Internet Exchange Point
LIC
Lower Income Country
MDB
Multilateral Development Bank
MoU
Memorandum of Understanding
NAMFISA
Namibia Financial Institutions Supervisory
Authority
NAPSA
National Pension Scheme Authority (Zambia)
NEPAD
New Partnership for Africas Development
NGO
Non-Governmental Organization
NSSF
National Social Security Fund
ODA
Official Development Assistance
OECD
Organisation for Economic Co-operation and
Development
OSBP
One-Stop Border Post
PAP
Priority Action Plan
PCG
Partial Credit Guarantee
PFA
Pension Fund Administrator
PIDA
Programme for Infrastructure Development in
Africa
PPP
Public-Private Partnership
PRG
Partial Risk Guarantee
RBA
Retirement Benefits Authority
REC
Regional Economic Communities
SADC
Southern African Development Community
SAPP
Southern African Power Pool
SARA
Southern African Railways Association
SBP
Strategic Business Plan
SEIA
Social and Environmental Impact Assessment
SPV
Special Purpose Vehicle
SSNIT
Social Security and National Insurance Trust
(Ghana)
TAH
Trans-African Highway
TWh
Terawatt-hours
UMA
Union du Maghreb Arabe
UNECA
United Nations Economic Commission for Africa
WAPP
West African Power Pool
WB
World Bank
WDI
World Development Indicators
WESTCOR
Western Power Corridor
YD
Yamoussoukro Decision
39
5/3/13 5:24 PM
Endnotes
World Economic Forum, Strategic Infrastructure: Steps to
Prioritize and Deliver Infrastructure Effectively and Efficiently,
September 2012, p iii.
World Economic Forum, Strategic Infrastructure: Steps to

Prioritize and Deliver Infrastructure Effectively and Efficiently,
September 2012.
Based on PIDA macro-economic expert team forecast, 2011.
PIDA executive summary p. 2. Source: AfDBs Private Sector

Development Strategy.
Study on Programme for Infrastructure Development in Africa

(PIDA), Africa Energy Outlook 2040 forecast, 2011.

(PIDA), Africa Transport Outlook 2040 forecast, 2011.

(PIDA), Africa Transboundary Water Resources Outlook 2040,
2011.

(PIDA), Africa ICT Outlook 2040, 2011.
African Development Bank, An Africa Infrastructure Bond.

(PIDA), Africa Energy Outlook 2040 forecast, 2011.
10
As stated in the Abuja Treaty of the African Economic

Community.
11

(PIDA), Africa Transboundary Water Resources Outlook 2040,
2011.
12

(PIDA), Africa ICT Outlook 2040, 2011.
13

(PIDA), PIDA Study Synthesis, 2011.
14
C.A. Mbeng Mezui, Accessing Local Markets for Infrastructure:

Lessons for Africa: Available at http://www.afdb.org/fileadmin/
uploads/afdb/Documents/Publications/Working%20Papers%20
Series%20153%20-%20Accessing%20Local%20Markets%20
for%20Infrastructure%20Lessons%20for%20Africa.pdf.
15
40
5/3/13 5:24 PM
References
An Africa Infrastructure Bond. African Development Bank.
Bhattacharya, Amar, Mattia Romani, and Nicholas Stern.
Infrastructure for development: meeting the challenge. CCCEP,
Grantham Research Institute on Climate Change and the
Environment and G 24 (2012).
Country Profiles, International Organization of Pension Supervisors
(IOPS) www.oecd.org/site/iops/
Estache, Antonio. Infrastructure finance in developing countries:
An overview. EIB Papers 15.2 (2010): 60-88.
Fay, Marianne; Iimi, Atsushi and Perrissin-Fabert, Baptiste,
Financing Greener and Climate-Resilient Infrastructure in
Developing Countries--Challenges and Opportunities EIB Papers
Volume 15 (p34-58), 2010
Foster, Vivien; Briceo-Garmendia, Cecilia, Africas Infrastructure A Time for Transformation, 2010
Macquarie Bank (2009). Annual Report.
Mbeng Mezui, Cdric Achille. Accessing Local Markets for
Infrastructure: Lessons for Africa. African Development Bank
Group, Working paper series No. 153, October 2012.
Pension Markets in Focus, September 2012. Paris: OECD
Directorate for Financial and Enterprise Affairs,
Strategic Infrastructure: Steps to Prioritize and Deliver Infrastructure
Effectively and Efficiently. September, 2012. Geneva: World
Economic Forum.
Structure Finance Conditions for Infrastructure Project Bonds in
African Markets, African Development Bank. 2013.
(PIDA): Africa Infrastructure Outlook 2040 ,. African Development
Bank Group, 2011. http://www.pidafrica.org/Africa%20
Infrastructure%20Outlook%202040.pdf
Supporting Infrastructure in Developing Countries, MDB Working
Group on Infrastructure (2011). Submission to the G20
Investments and Pension reforms around Africa: Wake up,
domestic giants!, The Africa Report (Oct. 2012) http://www.
theafricareport.com/North-Africa/investments-and-pensionreforms-around-africa-wake-up-domestic-giants.html
Yepes, Tito. Investment Needs for Infrastructure in Developing
Countries 2008-15. World Bank, unpublished draft (2008).
41
5/3/13 5:24 PM
Contributors
African Strategic Infrastructure Business

Working Group Partners
Initiative Partners
A.P. Mller-Maersk
Lars Reno Jakobsen
Senior Vice-President, Group
Representative Sub-Saharan Africa
African Development Bank (Initiative

Core partner)
Donald Kaberuka
President
Alex Rugamba
Director, Regional Integration and Trade
Shem Abraham Chalo Simuyemba
Chief Infrastructure Economist
Ralph Olay
Manager, NEPAD, Regional Integration &
Trade Department
Densil Magume
Assistant to Finance Vice-President
Cedric Achille Mbeng Mezui
Senior Financial Economist
Africa Union Commission
Elham M.A. Ibrahim
Commissioner for Infrastructure and Energy
Aboubakari Baba Moussa
Director, Infrastructure and Energy
David Kajange
Head, Transport and Tourism Division,
Department of Infrastructure
ABB
Nthabiseng Dube
Director, Marketing and Communications
Absa Capital
Raj Shah
Head, Sovereign and Public Sector Clients,
Sub-Saharan Africa
Actis
David Grylls
Partner, Energy
African Rainbow Minerals (ARM)
Imrhan Paruk
Executive, Corporate Development
AngloGold Ashanti
Zandie Mlambo
Government Relations Manager, Business
Sustainability
Yedwa Simelane
Senior Vice-President, Corporate Affairs
ArcelorMittal
Chifipa Mhango
Chief Economist, Africa
Arup
Richard Deh
Associate Director, Marketing and Business
Development
Edmund Katiti
Head, ICT
Development Bank of Southern Africa

Josephine Tsele
Divisional Executive
Sinazo J. Sibisi
Group Executive, Corporate Strategy and
Marketing
Helena McLeod
Advisor to Chief Executive Officer,
Development Bank International
Irma Weenink
Programme Manager, Project Development
and Partnerships
Elsabeth T. Tedros
Senior Investment Officer, Programme
Implementation and Coordination
Directorate
Etisalat Group
Pratap Ghose
Vice-President, Finance and Business
Optimization, Africa Region, Etisalat Group
Abdoul Salam Bello

Chief Executive Officer Office Senior
Coordinator
First Bank of Nigeria

Onche Ugbabe
Chief Strategy Officer
Adenrele Oni
General Manager, South Africa
Representative Office
NEPAD Planning and Coordinating

Agency (NEPAD Agency)
Ibrahim Assane Mayaki
Mosad Elmissiry
Head, Energy
John Tambi
Transport and Infrastructure Expert
Adama Deen
Head, Infrastructure Programmes and
Projects
42
General Electric (GE)

John Douglas
Project Development Manager
Nils Tcheyan
Head, Africa Policy
Sukhin Bhandari
Project Developement Leader,
Transportation
Industrial Development Cooperation (IDC)
of South Africa
Geoffrey Qhena
Linda Enicker
Senior Corporate Funding Manager
Vivian Ramathuba
Project Manager, Strategic High Impact
Project SBU
Ufikile Khumalo
Divisional Executive, Agro and New
Industries
Oando
Mobolaji Osunsanya
Group Executive Director
Old Mutual
Jurie Swart
Head, Infrastructure, Environmental and
Development Assets
Pandelani Mathoma
General Manager, Corporate Affairs
Philips
Juan Jacques van Dongen
Chairman and Chief Executive Officer
Prudential
Pierre-Olivier Boue
Managing Director, Chief Executive Officers
Office
Rio Tinto
Lloyd M. Nedohe
Principal Adviser, External Affairs Southern
Africa
Jean Chawapiwa
Vice-President, External Affairs and
Communications, Southern Africa
Sasol
Martin Ginster
Principal Specialist, SHE - Environment
Haiko Alfeld
Group General Manager, Stakeholder
Relations
SNC-Lavalin
Mark Hall
Senior Vice-President, Business Strategy
and Product
Oswald Mkhonto
Business Development Manager, SubSahara Africa
Standard Chartered
David J. Law
Managing Director and Regional Head,
Wholesale Banking, Middle East, North
Africa and Pakistan
5/3/13 5:24 PM
Sun Group
Vaidyanathan Sivakumar
Executive Director
Transnet
Mervin Chetty
General Manager, Africa Strategy
United Phosphorus (UPL)
Jaidev R. Shroff
Vale
Olivier Rwamasirabo
Corporate Affairs Manager, Africa
Bareja Youmssi
Mineral Rights Manager, Exploration EMEA
and West Asia
Experts to the African Strategic
Infrastructure Business Working Group
African Capacity Building Foundation
Frannie Leautier
Executive Director
Franklin Mutahakana
Senior Programme Officer
Infrastructure Consortium for Africa (ICA)
Mohamed H.Hassan
ICA Coordinator
Peter Fernandes Cardy
Infastructure Expert
International Finance Corporation (IFC)
Linda Munyengeterwa
Senior Investment Officer, Infrastructure,
Sub-Sahara Africa
Ram Mahidira
Portfolio Manager, Infrastructure, ICT and
Natural Resources, Sub-Saharan Africa
Mo Ibrahim Foundation
Nathalie Delapalme
Director, Research and Policy
Project Team
Henrik Emmert
Project Manager, African Strategic
Infrastructure Initiative, Infrastructure &
Urban Development Industries
Marie Lam Frendo
Senior Project Manager, African Strategic
Guido Battaglia
Project Manager, African Strategic
Marius Hugo
Senior Community Manager Africa
Membership
Reuben Coulter
Senior Community Manager Africa
Editors
Also in this series
Strategic Infrastructure: Steps to Prioritize

and Deliver Infrastructure Effectively and
Efficiently. September, 2012. Geneva:
World Economic Forum.

Alex Wong
Senior Director, Head of Business
Engagement (Geneva)
Pedro Rodrigues de Almeida
Director, Head of Infrastructure & Urban
Development Industries
Elsie Kanza
Director, Head of Africa
The Boston Consulting Group
(Adviser and Knowledge Partner)
Philipp Gerbert
Senior Partner, Global Head of
Infrastructure
Tenbite Ermias
Partner and Managing Director, Head of
Sub-Saharan Africa
Sebastian Bchte
Senior Principal, Head of Growth in Africa
Initiative
Strategic Infrastructure: Steps to Prepare

and Accelerate Public-Private Partnerships.
May, 2013. Geneva: World Economic
Forum.
NEPAD Business Foundation

Lynette Chen
Geoffrey Rothschild
Director and Chairman, NEPAD Business
Foundation Operations Committee
Derek Browne
Chief Operating Officer
Office of Gordon and Sarah Brown
Cormac Hollingsworth
Adviser
World Bank
Andrew Roberts
Senior Operations Officer, Africa Regional
Integration Department
43
5/3/13 5:24 PM
The World Economic Forum

is an independent international
organization committed to
improving the state of the world
by engaging business, political,
academic and other leaders of
society to shape global, regional
and industry agendas.
Incorporated as a not-for-profit
foundation in 1971 and
headquartered in Geneva,
Switzerland, the Forum is
tied to no political, partisan
or national interests.

9193 route de la Capite
CH-1223 Cologny/Geneva
Switzerland
Tel.: +41 (0) 22 869 1212
Fax: +41 (0) 22 786 2744
[email protected]
www.weforum.org
5/3/13 5:24 PM

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Industry Agenda

World Economic Forum

World Economic Forum

3 World Economic Forum

We would further like to highlight the contributions by additional members of these

African Strategic Infrastructure

African Development Bank

New Partnership for Africas Development Planning and

Strategic Infrastructure in Africa: A business approach to project acceleration

The Programme for Infrastructure

of accelerating implementation of the PAP

In response to this need, a Programme

The BWG has developed a methodology

PIDA aims at:

A Methodology for Selecting

Figure 1: Four Steps of Project Selection Methodology

Key thresholds applied

Consider projects wellpositioned in matrices

Strategic Infrastructure in Africa: A business approach to project acceleration

3. Using the two-lens clustering method

III. Equity: This stream plays a catalytic role

The application of the above-mentioned

While infrastructure demand is growing,

Infrastructure bonds: These can be

Strategic Infrastructure in Africa: A business approach to project acceleration

Figure 2: Annual Infrastructure Spending by Sources Compared to Needs 2020

When properly aligned with a countrys

The (African) Infrastructure Gap

Estimated split of current

Future annual investment needs,

Infrastructure financing has been affected

existing infrastructure and funding for future

Strategic Infrastructure in Africa: A business approach to project acceleration

All of this new demand will put additional

traditionally a key source of infrastructure

The World Bank estimates that Africa needs

East Asia & Pacific

Europe &Central Asia

At the same time, Africas economic growth

The Programme for Infrastructure

PIDA aims at:

The heart of PIDA is the Priority Action Plan

Strategic Infrastructure in Africa: A business approach to project acceleration

Sidebar: Overview of 51 PIDA PAP Programmes/Projects14

Northern Multimodal Corridor

North-South Multimodal Corridor

Southern Africa Hub Port and Rail

Lamu Gateway Development

Beira/Nacala Multimodal Corridor

Trans-African Highway (TAH)

Single African Sky Phase 1

Yamoussoukro Decision (YD)

Smart Corridor Programme, Phase I

Abidjan-Lagos Coastal Corridor

Dakar-Niamey Multimodal Corridor

Praia-Dakar-Abidjan Multimodal Corridor

West Africa Hub Port and Rail

West Africa Air Transport

Pointe Noire, Brazzaville/Kinshasa,