EU AU Aviation Conference 2-3 April 2009

Transcription

1 EU AU Aviation Conference 2-3 April 2009 EC-Africa Development Cooperation for the Aviation Sector: Framework and Outlook Bryan Greey Transport and Infrastructure policy Economic Development Division Directorate General Development 1

2 Aviation sector in EC-Africa development cooperation: snapshot and key issues Air transport subsector historically not a significant recipient of EC grants. (< 2% of total EDF grants for transport sector 95-06) EC Aid for transport concentrated on roads where substantial grant funding is often highest priority for partners. EIB has provided more significant funding for airport infrastructure; loan funding is often appropriate (sector generates own funds, via user charges, viability possible). However, EC cooperation policy recognises need for grant funds in some areas of sector, notably the improvement of safety and security, and capacity building. Issues can support for the sector be increased? - what are the different instruments available? - what practical steps have to be taken? 2

3 Framework for EC-Africa development co-operation COTONOU AGREEMENT (CA) provides framework for Development Co-operation Financing for ACP (78 States, incl. 45 SSA). CA concluded for 20 year period, Revised every 5 years 1st revision in force 06/2008; North African countries covered under European Neighbourhood Policy instrument (DG RELEX). 3

4 Programming of Support for ACP Funds under CA largely provided through the European Development Fund (EDF), financed by EUMS. EDF renewed and reprogrammed every 5 yrs. For period , its 10TH EDF. EDF funds provided as grants, thru country, regional and all-acp Progs. 10th EDF programming exercise largely completed end (ACP + EC Delegations + DG DEV). Overall objectives - poverty reduction and achievement of MDGs, sustainable growth and regional integration. 9 areas for action, including infrastructure, communications and transport (incl. aviation), but funds to be concentrated mainly in 2 areas to avoid excessive dispersion. 4

5 EU Africa Dimension & Infrastructure Partnership (EIP) EIP evolved from EU-Africa strategy, and was launched in Superposed on Cotonou framework for SSA, aims to promote interconnectivity of African continent and regions. Covers whole of Africa. European response to the AU-NEPAD Infrastructure Plan Focuses on cross-border and regional infrastructure (transport, energy, water & ICT) and support for regulatory frameworks that facilitate integration/trade. Strategic guidance provided by Partnership Steering Committee, composed of European and African members Includes a new instrument, the Infrastructure Trust Fund (ITF). 5

6 ITF Concept : blending capacities Grant resources from the Commission and EU Trust Fund Member States Lending & technical capacity of EIB and EU development financiers Projects Partnership with African Development Bank 6

7 ITF: Forms of grant support (i) Interest rate subsidies on medium/long term project loans (IRS); (ii) Technical assistance, feasibility studies and projectrelated capacity building (TA); (iii)one-off grants for social or environmental components (DG); (iv) Payment of early-stage premiums on project risk insurance (risk mitigation) (IP). 7

8 ITF: project proposals and approvals Project proposals for funding by the ITF are prepared by members of the Project Financiers Group (PFG). The PFG comprises the EIB and financial institutions or agencies designated by their respective Donor PFG submits proposals to ITF Executive Committee (composed of ITF donors). EIB provides ITF secretariat At end 2008, 147m pledged to ITF by EC and EUMS, and 56m approved for specific projects. Estimated that each euro in ITF will leverage 5 in loans. 8

9 EU-Africa focus favours increase in aviation support EU policy to support interconnectivity under the EIP raises profile of transport modes other than roads. Highlights need for improvements in safety and security, and for Africa-wide harmonisation of regulatory frameworks Stresses importance of promoting liberalisation of all transport services. Gives priority for capacity building at continental and regional level to strengthen safety oversight capability, and also civil aviation authorities Establishment of ITF offers possibilities for cofinancing of regional aviation infrastructure (incl. equipment) mixing grants and loans -ex. EGNOS extension. EIB already active in aviation sector ( EIB aviation infrastructure loans 116m). Support may increase via ITF, subject to attractive proposals. 9

10 Support for aviation in 10th EDF? National level - only 2 SSA countries have indicated need for support under NIPs, but some room for flexibility (MTR). Regional level all 4 programmes include provision for possible allocations. Actual support depends on RECs proposals. Continental level possibility for further support to AU/AFCAC to follow up existing 9th EDF project for YD executing agency. ITF additional funding to be provided will enable PFG to fund more eligible trans-border projects, which may include aviation projects. 10

11 Role of African Partners Important Resolutions of African States in Sun City, Libreville and Algiers provide clearer continental policy framework. Adoption of Air Transport Plan of Action ( ) in Algiers sets out priority AU objectives and road map for EU-AUC co-operation. Proposals from RECs awaited for 10th EDF - Role of regional bodies (including ASECNA) in harmonising legislation, safety standards, etc is recognised and can be supported in Regional Programmes. RECs may also initiate contact with PFG members for ITF-linked projects. National Air transport Ministries/Authorities/Operators need to ensure they are involved in their countries programming dialogue with EC and EIB (Contacts: NAOs and EC Delegations in country). 11

12 Other issues to be addressed Enhancing dialogue between European Commission, EASA, EIB and EUMS, and African partners to develop a joint approach to the African aviation sector (SSA and NA). Ensuring coordination of EU support with other organisations such as ICAO and the World Bank. Promoting improved africa-wide coordination of strategies for developing the sector (e.g AU, AFCAC, RECs, ASECNA) Integrating strategies for aviation sector with wider strategies for infrastructure development (ref: NEPAD-STAP, AICD*, PIDA*) Examining possibilities for promoting private sector investment in the sector, and also public-private partnerships. * AICD: Africa Infrastructure Country Diagnostic * PIDA: Programme for Infrastructure Development in Africa 12

13 Conclusions Previous presentations on EC external aviation policy highlight possibilities of a closer EU-Africa relationship and greater cooperation in the sector. There are sources of EU finance, in grant and loan form, which could be used for developing the sector. EDF and ITF allocations for sector activities depend on African partners decisions and the preparation of appropriate proposals (Governments, AU, RECs, working with EC Delegations and Europeaid, EIB, PFG members) Guidance on the organisational process/procedures for accessing funding can be provided by National/Regional Authorising Officers and EC Delegations, & EIB/ITF. 13

14 Annex to DG Development Presentation for EU-Africa Aviation Conference (April 2009) (1) 1. Contacts for the aviation sector in EC Delegations. Regional SADC: ESA-IO: EAC: ECOWAS: UEMOA: CEEAC: CEMAC: Botswana Zambia Tanzania Nigeria Burkina Faso Gabon C.A.R. National Visit or directly to 2. Contacts for EIB/ITF ITF Website: ITF Secretariat: 14

15 Annex to DG Development Presentation for EU-Africa Aviation Conference (April 2009) (2) 3. Members of ITF Project Financiers Group (PFG) EIB (EC) Austrian Development Bank (AT) Agence Française de Développement (FR) Kreditanstalt für Wiederaufbau (DE) Ministry of Economy and Finance (GR) Ministry of Foreign Affairs (IT) Lux-Development S.A. (LU) SOFID (PT) COFIDES S.A. (ES) African Development Bank (U.K, NL, tbc) 15