Spatial Development Corridors and Integrated Planning for Accelerated, Sustainable Infrastructure Se

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Spatial Development Corridors and Integrated
Planning for Accelerated, Sustainable
Infrastructure Service Delivery

• Linsey Dyer
• Ai africainvestorprojectssummit
• 7-8 November 2007, Lagos, Nigeria

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Presentation Objectives

• To provide an engagement approach for investors
  and governments for critical and strategic
  infrastructure
• Link spatial development thinking with
  infrastructure planning and service delivery
• Thinking will range from cross-border to local
  government
• Stimulate discussion on how to firm up the
  linkages between planning and investment steps
• Incite thinking on new ways for the public and
  private sectors to collaborate on infrastructure
  service delivery

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Outline

• Quick review of whats nice and whats not in
  private participation in infrastructure (PPI)
• Overview of spatial development conceptual
  planning in Africa
• Thoughts on the context of infrastructure service
  planning and delivery
• Example of integrated planning and SDC thinking
• Performance-oriented support from multi-lateral
  financial institutions
• Considerations on new ways of addressing
  infrastructure development
• Conclusions

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Private Participation in Infrastructure (PPI)

• Attractiveness to the private sector

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Private Participation in Infrastructure (PPI)
whats the pattern?

• Ranking
• Telecoms
• Gas and Oil Pipelines
• Electricity
• Transport
• Water Supply
• Sewerage
• Industrial commercial gt residential
• Urban gt rural
• World Bank PPI Database 1984-2005
• 10 Gas transmission projects
• 3 Electricity projects
• 2 Hydropower projects in Laos selling to Thailand
• 1 Transmission line Brazil-Argentina
• 2 Railway projects
• Both in Sub-Saharan Africa
• 2 Toll Road projects
• N4-Mozambique
• Bridge between Argentina Brazil

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Private Participation in Infrastructure (PPI)

• Prospects for Private Financing of Cross-Border
  Infrastructure Projects
• Telecommunications Very Good
• Oil Gas Pipelines Good
• But depends on the amount of cost savings
• Transmission Lines
• From cheap source Good
• Grid interconnections Poor
• Railways
• Concessioning of existing lines Good
• New construction Poor
• Toll Roads
• In general Poor
• Key segments (bridges, urban bypasses)
  Reasonably good

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Private Participation in Infrastructure (PPI)

• PPP models

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Spatial Development Corridors

• What are they and how do they accelerate
  infrastructure development?
• Defined geographic areas usually along existing
  transport and development corridors aimed at
  unlocking inherent economic potential (mainly
  mining) in these areas by enhancing their
  attractiveness for investment
• Creating a critical mass of integrated and
  synchronized private sector investment and
  infrastructure development necessary to
  kick-start a sustainable economic development
  process
• Enhancing the attractiveness of the area for
  investment by advocating for the removal of
  bureaucratic, administrative and institutional
  impediments to trade and investment.

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SDPs in Africa 1st Pass
Maghreb Coastal
Niger Dakar Port Harcourt
Red Sea - Nile
Djibouti
Conakry Buchanan
Sekondi Ougadougou
Douala
Mombasa
Gulf of Guinea Coastal
Libreville Lomie
Madagascar
Bas Congo
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Idealised DC Configuration
Agri-node cluster
Anchor cluster
Stranded investment
feeder
TRUNK Infrastructure PPP
DC logistics catchment
Problem feeder
Problem feeder
DENSIFICATION Feeders often need to be funded
thru fiscus/grant
Anchor cluster
Stranded investment
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Infrastructure Service Delivery Path

• Considerations
• Service levels
• Performance management
• Consumer focus
• Accountability
• Monitoring and evaluation
• Benchmarking
• Affordability to supplier and consumer

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Sustainable Infrastructure Project Development
And Delivery Chain
Shared Goals
Infrastructure Service Delivery Path
Project Conception
Enabling Environment
VISIONS
Government(s)
RECs
DFIs
Private Sector
Potential Consumers/ Beneficiaries
Civil society, NGOs
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Infrastructure Project Development and
Operational Framework
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MFI Support to PPI Output Based Aid

• OBA a strategy for using explicit
  performance-based subsidies to support the
  delivery of basic services where policy concerns
  would justify public funding to complement or
  replace user-fees
• Involves delegating service delivery to a
  third-party, typically private firms, but also
  public utilities, NGOs, and community-based
  organizations, under contracts that tie
  disbursement of the public funding to the
  services or outputs actually delivered
• OBA Schemes can take a variety of forms,
  depending on the nature of the service and the
  rationale for public funding
• Typical objectives of OBA schemes
• Sharpen the targeting of development outcomes
• Improve accountability for use of public
  resources
• Provide stronger incentives for efficiency and
  innovation
• Help mobilize private financing in support of
  development objectives

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MFI Support to PPI Output Based Aid

• Examples of possible applications include
• Goal to expand access to network services
  disbursements may be tied to the number of new
  connections made
• Goal to bring retail prices in line with costs
  declining transition subsidies may help ease
  tariffs towards cost recovery levels
• Goal to enhance competition and performance
  between service providers voucher-type
  arrangements may allow consumers a choice of
  provider
• Goal to improve the affordability of ongoing
  consumption for an underserved group funding may
  be tied to services delivered to eligible
  beneficiaries.
• www.gpoba.org

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Integrated Municipal Service Delivery
Water Sanitation Services
Sectoral Governance, Regulation Support
DWAF
Regional Bulk
Water Boards/CMA
Internal Bulk A
Internal Bulk B
WSA Local or District Munics
Commu-nity 1
Commu-nity 2
Commu-nity 3
Commu-nity 4
Commu-nity 5
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Integrated Municipal Service Delivery
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Integrated Municipal Service Delivery
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NEPAD means New Ways

• New ways to incentivize both public and private
  sectors
• Output Based Aid
• New ways of working with private infrastructure
  developers and investors
• Work through risks and with them to identify and
  appropriately assign risks, fine-tune cash flows
• Bring them into the Project Roadmap early - at
  pre- and feasibility stages
• There are more and more facilities to support
  this (NEPAD IPPF, etc.)
• NEPAD Infrastructure Investment Facility
• Only PPF run by the private sector, supporting
  private infrastructure
• Focused on mobilising the African private sector
  to participate in African infrastructure

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Integrated Planning

• Integrate planning within the sector and between
  sectors
• Involve the private sector in the processes
• Country development strategies should address PSP
  in bulk and retail infrastructure
• REC support to integration of these strategies
• Private participants have their own plans, too
• They work to a triple bottom line and need to
  plan CSI
• Will work with governments to invest in public
  goods
• Risk management key
• Need for regulators with teeth
• Balance with utilities
• Critical for governments to address regulatory
  capacity
• Consider regional staffing of regulatory bodies

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Conclusions

• New forms of public-private partnerships
• Disaggregate projects, and identify what can pay
  for itself
• PPPs at the institutional level can be critical
  to implementation and operational success
• Integrate SDC thinking into planning from local
  through to regional level
• Think differently
• Governments replace public sector bias with a
  more balanced view, outcomes based approach
• Investors participate in the planning process

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Acknowledgments

• Per Ljung, PM Global Infrastructure
• Paul Jourdan, Mintek
• Danie Wium, Africon

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Contact Details

• Linsey Dyer
• Technical Director
• Africon
• Africon Centre
• 1040 Burnett Street
• Hatfield, Pretoria 0083
• South Africa
• www.africon.com
• E-mail Linseyd_at_africon.co.za
• Tel [phone]
• Fax [phone]

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• THANK YOU