Using ODA for facilitating private investment in African energy sector

Transcription

1 Using ODA for facilitating private investment in African energy sector Yoshiro Kurashina Director, Regional Strategy Unit for Africa Japan International Cooperation Agency (JICA) Johannesburg, 11/11/2009

2 Contents An Overview of JICA s approach and TICAD Process JICA s assistance in energy sector in Africa Facilitating private investment in energy sector

3 An Overview of JICA s approach and TICAD Process

4 JICA and ODA ODA: Official Development Assistance Bilateral Assistance Multilateral Assistance *Excluding those to remain under the auspices of MOFA for diplomatic reasons. Mission 1. Addressing the global agenda 2. Reducing poverty through equitable growth 3. Improving governance 4. Achieving human security Strategy 1. Integrated assistance 2. Seamless assistance 3. Promoting development partnerships 4. Enhancing research and knowledge-sharing Technical Cooperation ODA Loan Grant Aid* JICA Enhanced effectiveness, efficiency and impact with 3S Speed Up Scale up Spread Out

5 JICA Offices in Africa in 29 countries Morocco Tunisia Egypt Senegal Niger Burkina Faso Sudan (Khartoum) Sierra Leone Liberia Ghana Côte d Ivoire Total: 30 offices Benin Nigeria Cameroon Gabon DRC Namibia Sudan (Juba) Zambia Botswana Uganda Rwanda Burundi Zimbabwe South Africa Mozambique Djibouti Ethiopia Tanzania Malawi Kenya Madagascar

6 Forth Tokyo International Conference on African Development - TICAD IV (Yokohama, May 28-30, 2008) Towards a Vibrant Africa: Continent of Hope and Opportunity (Source: Kantei hp) 51 African countries represented (41 Head of States/Governments) 33 partner countries 77 regional / international organizations

7 TICAD IV Internationally agreed principles of cooperation to Africa reflected in the Yokohama Declaration 1. Boosting Economic Growth a. Development of regional infrastructure (transport, power) Expansion of One Stop Border Post (OSBP) b. Enhance capacity to increase food production and agricultural productivity (especially rice) through the promotion of CARD initiative c. Trade, investment and tourism promotion / infrastructure development for PPP, human resource development 2. Ensuring Human Security a. Assistance to achieve MDGs (school construction, infectious disease control, water supply) b. Development assistance that contribute to regional stability and peace consolidation 3. Environment / Climate Change Contribute to Cool Earth Partnership through effective project formulation and implementation

8 Japan s commitment: Fukuda Initiative Doubling total ODA to Africa by 2012 ODA by Modality Average Annual Level Targeted Amount in ( ) 2012 (Cumulative) Grants (Bilateral) USD 0.7 billion USD 1.4 billion ODA loan (Net) USD 80 million Over USD 160 million Disbursement to AfDB USD 120 million USD 240 million Total ODA to Africa USD 0.9 billion USD 1.8 billion Average ( ) Yen Loan (billion USD) Disbursement to AfDB Yen Loan (Net) Technical Cooperation Grants 2012 Average ( ) T/C & Grants

9 JICA s assistance in energy sector in Africa

10 JICA s approach to the Yokohama Action Plan (YAP) Implementation - Sectoral Strategies - Sectoral strategies established for respective priority areas of YAP Infrastructure (Transport/Power), Trade/Investment/Tourism, Agriculture Community Development, Education, Health Climate Change, Water and Sanitation Peacebuilding South South Cooperation Issues and challenges of the sector identified and the approach to overcome clarified A road map in achieving the YAP commitments prepared and shared

11 Infrastructure (strategic priority) Power <Sub-Sahara Africa> With existing power pool in mind, support power generation, transformation and distribution together with necessary technical cooperation <Countries emerging from conflict> Extend technical cooperation to fulfill urgent power demand that contributes to improved stability and economic growth <Northern Africa> Focus on energy efficiency improvement by enhancing renewable energy development, improving distribution quality, etc..

12 Regional Infrastructure (power) Power Pool: There are currently 4 power pools in Sub-Sahara Africa and the trade of power is free within regions. West Africa Power Pool Central Africa Power Pool Southern Africa Power Pool Eastern Africa Power Pool :Loans :Grant :T/A

13 West-Central Africa Regional Infrastructure Assistance case: Japan s Assistance for Energy Sector in Africa GHANA Rural Electrification (V) (On-going) Eastern Africa Human Resources Development Project for Disseminating PV Systems (On-going) UGANDA CAPE VERDE Power Supply, Transmission and Distribution Lines Project in Santiago Island(ACFA)(On-going) *L/A signed 08,Mar Bujagali Interconnection Project(ACFA) (On-going) *L/A signed 07,Oct Construction of Ayago Hydropower Plant Project (Candidate Project) SENEGAL OMVG Power Generation &Transmission(Candidate Project) Rural Electrification Project Phase II (On-going) SIERRA LEONE Project for Urgent Improvement of Electric Power Supply System in Freetown (On-going) NIGERIGA Project for the Rural Electrification in Cross River and Akwa Iborn States (I-III) (On-going) West Africa Power Pool KENYA Sondu-Miriu Hydropower Project II (On-going) *L/A signed 07,Jan Olkaria IV Geothermal Power Plant Construction Project (Candidate Project) Malawi ZAMBIA Southern Africa The Rural Electrification Promotion Project (MAREP Phase IV) (On-going) Increasing Access to Electricity Services Project (Co-financing with WB)(On-going) Electrification Development Master Plan (On-going) Central Africa Power Pool Southern Africa Power Pool Eastern Africa Power Pool TANZANIA Reinforcement for Iringa-Shinyanga 330 kv Transmission Line Project (Co-financing with WB)(Candidate Project) Thermal Power Development Project(Co-financing with WB)(Candidate Project) Project of Reinforcement of Transmission and distribution Facilitation in Oysterbay Station (On-going) Technical Support Project for the Stable Power Supply System (On-going) Loans Grant T/A MOZAMBIQUE *Only on-going/candidate projects are shown in this sheet Mozambique-Malawi Transmission Line Project (Co-financing with WB)(Candidate Project) North-South Backbone Transmission Line Project(Co-financing with WB)(Candidate Project)

14 Enhanced Private Sector Assistance for Africa (EPSA) ACFA Accelerated Co-financing Scheme for Africa Annual consultation on Project Finding / Implementation JICA ODA Loans Commission to formulate, supervise etc. Concrete Commitment EPSA Enhanced Private Sector Assistance for Africa AfDB/AfDF Provide Loans and supervise projects Sovereign Guaranteed Projects Commit JICA ODA loans up to 1 billion USD over the next 5 years since 2005 NSL Non-Sovereign Loan JICA AfDB ODA Loans Provide Loans and supervise projects Non-sovereign Private Sector Projects <Focus areas> - Creating an Enabling Business Environment - Strengthening Financial Systems - Building Competitive Infrastructure - Development of Micro-SMEs - Promoting Trade and FDI FAPA Fund for Private Sector Assistance GoJ FAPA (Secretariat within AfDB) Technical Assistance

15 Clean Development Mechanism (CDM) and JICA CDM capacity building (training on Project Design Document preparation etc.) Conference on CDM regulatory framework co-organised by Uganda (Chair of CDM LDC Group) and JICA for CDM LDC Group (Uganda, 1 October 2009) Zafarana Wind Power Plant Project (Yen loan) in Egypt : First large-scale bi-lateral ODA project registered as a CDM project in the world (2007)

16 Facilitating private investment in energy sector (2 examples) Case 1 Bujagali Energy Development under Public-Private Partnership (PPP) Uganda

17 Public Private PPP Bujagali Interconnection Project Bujagali Hydropower Project Uganda Electricity Company (Executing Agency) Government of Uganda (Borrower) JBIC/AfDB Loan (EPSA) MIGA Guarantee Shareholders Financing Private Companies SPC Guarantee Loans IDA Commercial Lenders DFIs (IFC, AfDB, etc)

18 Case 2 Olkaria Geothermal Energy Development Kenya

19 Energy Situation and Olkaria About 1300MW of national capacity, 55% hydro, 33% thermal, 12% geothermal. About 20% from IPPs. Power demand doubles in next 6-7 years Power crisis, mainly due to little rain, and the reserve margin is negative. With more than 7,000MW of potential, geothermal as next core supply Source: KENGEN

20 Energy Situation and Olkaria JICA s potential survey initiated MW of Olkaria I III is under operation Active discussions for Olkaria expansion projects among the Government of Kenya and Development Partners

21 Lessons and Conclusions

22 Lessons and Conclusions Emerging needs and huge potential for (renewable) energy development in Africa ODA s role to mobilise private investment in energy sector in Africa financial assistance, regulatory framework, capacity building Partnership among the Government, the private sector and the development partners

23 JICA s VISION Inclusive and Dynamic Development 23

24 Thank you Merci Obrigado 24