Overview of Transport PPPs. in Africa. Infrastructure Department. Philippe Durand. AfDB. ICA Transport Meeting. December 07

Transcription

1 Overview of Transport PPPs in Africa Philippe Durand Infrastructure Department AfDB

2 Contents of presentation 1. Statistics on PPPs 2. Some outcomes of transport PPPs in Africa 3. Shortcomings and requisites 4. Suggestions on the way forward

3 1. Some statistics on PPPs (from PPIAF/WB Private Participation in Infrastructure Data Base)

4 Myth 1: Only few transport PPPs in Africa? Transport PPPs ( ) projects total SSA: 82 projects - $10 billion committed # PPPs /year $ billion committed Middle East & North Africa Europe & Central Asia Sub-Saharan Africa South Asia East Asia & Pacific Latin America & Caribbean

5 . As many as for energy, with fastest pace recently PPP projects in SSA ( ) Total = 332 projects Total Last 4 years 20 0 W&S Energy Transport Telecom

6 Concession model predominant worldwide Type of private participation (SSA) - Concessions = 62% LAC = 70% EAP = 39% Divestiture Management/Lease Greenfield Concession

7 Ports and Rail are predominant PPP type # Transport PPPs by sub-sector in SSA ( ) Roads Airports Rail Ports

8 Recent PPPs in transport in Africa Nigeria Calabar Port: concession, international sponsor, $24 million investment, $30 million paid to Gov. (part of a larger port concessioning program 19 concessions) Nigeria Central Railway: concession, international sponsor, no investment, $6 million paid to Gov. Nigeria Murtala Muhamad Airport: greenfield, local sponsor, $200 million investment Djibouti Doraleh Port: greenfield, international sponsor, $300 million investment South Africa Gautrain ligh rail: greenfield, international/local sponsor, $3500 investment Sudan Juba port: concession, international sponsor, $30 million investment Kenya-Uganda Rail: concession, international/local sponsor, $400 million investment, $4 million paid to Gov. Equatorial Guinea Luba Port: concession, international investor, $70 million investment, $2 million paid to Gov. Morocco Tangier Container Terminal: greenfield, international sponsor, $1300 million investment

9 Myth 2: PPPs fail in SSA Canceled/distressed transport PPPs (%) Canceled/distressed projects - SSA (%) Africa World LAC Transport Telecom Energy W&S

10 2. Some outcomes of transport PPPs in Africa

11 Overall positive outcomes PPPs deliver operational and service improvements. Some examples: Cameroon railway (05 vs 99): +27% in freight traffic; +16% in productivity; current asset ratio from 0.55 to 0.9; increased net transfers to Gov. Beira railway (07 vs 04): 10 fold increase in average km between locomotive failure; 5 fold decrease in track under temporary speed restriction Mali-Senegal railway (07-04): 8 fold decrease in length of traffic slowdown RSA national toll roads: reduced vehicle operating costs, faster and safer travel, regional integration But: generally lower-than-expected results and some failures (e.g. Cameroon airport lease, Cote d Ivoire Sitarail)

12 Also, PPPs results are not well documented Not enough systematic, quantitative, continuous assessments of PPPs outcomes In some cases, too recent experience (concession = long term business) Stakeholder information/communication needs to improve

13 3. Issues and requisites Some issues: Information/capacity asymmetry between investor & regulator Limited investment by concessionaires Few local sponsors Uncertain fiscal capacity for transport subsidies + financing/ maintenance of public assets Direct/indirect subsidies to road users: pb for rail Dismissed workers in rail sector Reversals in some countries of leading continent in PPPs (LAC) Public criticisms

14 Requisites for successful PPPs Public sector capacity (design, recruit and monitor PPPs) Pipeline of bankable projects (up to feasibility) Transparent & predictable regulation, including dispute resolution and renegotiation mechanisms Government continuous commitment Stakeholder information Financial viability: rates + subsidies Adequate risk allocation and mitigation Competition for the market or unsolicited proposals for greenfield projects Intermodal competition (e.g. rail vs road)

15 4. Suggestions on way forward Governments to prepare/strengthen PPP sub-sectoral strategies: governments need to be in the driver s seat Recognition that infrastructure scale-up requires PPPs Finance and better coordinate development of pipeline of projects Enhance public sector capacity for PPPs contracting and regulation Increased support from AfDB: strategy under preparation (principles: selectivity, value added, partnerships, capacity building, internal synergies

16 THANK YOU