The African Union (AU) project Programme for Infrastructure Development for Africa (Pida) is seeking private funding in order to commence with developments, including ICT improvements continent-wide.
The US$60 billion budget for energy, transport, water and ICT projects was announced by Ebrima Faal Regional Director at African Development Bank, at the African Energy Indaba 2013 show in Johannesburg on Tuesday, February 19, reported Engineering News.
“We are looking for significant amounts of money,” Faal said.
However, the World Bank has calculated a sum of US$93 billion necessary to overcome power, water, ICT and transport obstacles compared to Faal’s declared US$45 billion yearly expenditure.
Efforts to make the project attractive for investors are high priority as governments put policies and regulatory reforms in place.
“Most of Africa’s infrastructure projects, including power, have been funded by the public sector. Of course, the private sector needs to be brought on board not only as financiers and project developers, but also in terms of their ability to fast-track construction […] and bring in new technology,” Faal said.
Experts warned that project preparation, greater regional cooperation, policy and regulatory certainty and private capital are considered as negative contributions to the funding gaps associated with energy components in the project.
Driven by the New Partnership for Africa’s Development (Nepad), the five year plan includes projects such as transmission corridors, hydropower an oil pipelines.
Pida estimated energy projects for 2020 would cost US$47 billion, with cross-border infrastructures to follow until 2040.
According to Mosad Elmissiry, Head Professor at Nepad Agency Energy Division, progress is evident with almost 20 projects on water and energy level and the establishment of transmission links in four corridors.
These include the North-South Transmission Link, from Egypt to South Africa, with branches mostly into East Africa, and the Central Corridor, from Angola to South Africa, with branch lines into Central and West Africa among others.
A fivefold increase in Africa’s current power production capacity is required to meet the the goal of 60 percent energy access for 2040.