POLICY AND PLANNING FOR INFRASTRUCTURE DEVELOPMENT: WHY THE LONG VIEW MATTERS. By ENGR. MUSTAFA B. SHEHU , FNSE, FSESN. President, Federation of African Engineering Organisations Delivered at: Chatham House, The Royal Institute of International Affairs, London At the occasion of: The Africa Programme Conference on Governing for Infrastructure Delivery in Sub-Saharan Africa: Overcoming Challenges to Create Enabling Environment 14-15 March 2016.
AFRICA INFRASTRUCTURE: INTRODUCTION No. of Countries: 55 Population: 1.15Billion 2015 est. Area: 30.1 million sq km
AFRICA INFRASTRUCTURE: INTRODUCTION Population Growth
INFRASTRUCTURE DEFINITION Infrastructure can be defined as: The physical and organizational components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions.
INFRASTRUCTURE DEFINITION COMPONENTS OF INFRACTRUCTURE Public works o Irrigation systems o Schools o Housing o Hospitals
INFRASTRUCTURE DEFINITION COMPONENTS OF INFRACTRUCTURE Transport sector o Roads o Railways o Sea Ports o Waterways o Airports
INFRASTRUCTURE DEFINITION COMPONENTS OF INFRACTRUCTURE Research facilities ◦ Laboratories ◦ Equipment Infrastructure services
AFRICA INFRASTRUCTURE DEFICIT Road Access Trans African Highways Road access rate in Africa is only 34% 9 main corridors with a total length of 59,100 km
AFRICA INFRASTRUCTURE DEFICIT Infrastructure: Access to Water Access to improved source of drinking water: 65%
AFRICA INFRASTRUCTURE DEFICIT Infrastructure: Access to Sanitation Access to proper sanitation: Global average: 66% Africa: 38%
AFRICA INFRASTRUCTURE DEFICIT Infrastructure: Access to Electricity Access to Electricity: about 30%
AFRICA Infrastructure: Access to ICT Mobile cellular penetration Mobile-cellular penetration in 90% 80% sub-Saharan Africa is at 39% 70% 60% of the population 50% 40% 30% 20% 10% 0% Europe CIS North Latin Asia Arab Africa America America Pacific States Access to the Internet 90% 80% Access to the internet is at 70% 60% 20.7% of the population 50% 40% 30% 20% 10% 0% Europe CIS The Asia Arab Africa America Pacific States
INFRASTRUCTURE POLICY IN AFRICA A policy is a deliberate system of principles to guide decisions and achieve rational outcomes. It is a statement of intent, and is implemented as a procedure or protocol. Policy and regulatory re-forms, common standards, harmonization, economic tariffs and a culture of maintenance are essential steps towards realizing efficiency gains in the utilization of existing infrastructure and ensuring optimal utilization of infrastructure assets and their sustainability. Policies on infrastructure delivery is mainly cantered around Public Private Partnerships, (PPP).
INFRASTRUCTURE POLICY IN AFRICA PPP is a contractual agreement between a public agency (International, Federal, State or Local Government) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility.
INFRASTRUCTURE POLICY IN AFRICA Why PPP?
INFRASTRUCTURE POLICY IN AFRICA Infrastructure Policy Regulation For any country or continent to expect high influx of foreign direct investment in the infrastructure development, there has to be strong and enforceable regulations. These regulations can be done through any of the following models: ◦ Regulation by government (eg. ICRC in Nigeria) ◦ Independent Regulation ◦ Outsourcing regulatory function ◦ Advisory regulators and expert panels ◦ Hybrid and transitional models
INFRASTRUCTURE PLANNING IN AFRICA At continental level ◦ Programme for Infrastructural Development in Africa (PIDA) – 2011 to 2040 ($360 billion) ◦ PIDA Priority Action Plan (PAP) – 2011 to 2012 ($67.9 billion) At National levels Examples ◦ National Integrated Infrastructure Master Plan (NIIMP) in Nigeria – 2014 to 2043 ($3.05 trillion) ◦ National Infrastructure Plan (NIP) in South Africa – 2012 to 2020 (about $100 billion in 2012)
INFRASTRUCTURE PLANNING IN AFRICA PIDA Priority Action Plan (PAP) By Sector ◦ Energy - $40.3 billion ◦ Transport - $25.4 billion ◦ Transboundary water - $1.7 billion ◦ ICT - $0.5 By Region ◦ East Africa - $23.3 billion ◦ Central Africa - $21.5 billion ◦ Southern Africa - $12.6 billion ◦ West Africa - $6.2 billion ◦ Continental - $3 billion ◦ North Africa - $1.3 billion
INFRASTRUCTURE PLANNING IN AFRICA Dakar Agenda for Action African Heads of State and Government, Ministers and representatives of African countries, Regional Economic Communities, leading business, investment and private sector organizations, development finance institutions as well as development partner institutions, met in Dakar, Senegal on 15 June 2014. Reiterated that PIDA is the basis for the implementation of priority projects to transform Africa and the inspiration for the financing of the construction of modern infrastructure based on the PIDA Priority Action Plan (PAP) projects
INFRASTRUCTURE PLANNING IN AFRICA Dakar Agenda for Action Agreed that feasibility studies and infrastructure project preparation activities for the identified 16 PAS projects should be carried out by the African Development Bank under the supervision of the NEPAD Agency toward reaching bankability and attract private sector players. The Summit concluded that time has come to fund Africa’s development from African financial sources.
INFRASTRUCTURE PLANNING IN AFRICA National Integrated Infrastructure Master Plan (NIIMP) The NIIMP aims to raise Nigeria’s stock of infrastructure from the current 20-25% of the GDP to at least 70% of GDP by 2043. It identifies the investment required to bridge and expand Nigeria’s infrastructure. ◦ About $3.05 trillion (N485 trillion) will be required to deliver quality infrastructure across different asset classes, including energy, transport, ICT, housing, water, agriculture, mining, social infrastructure, vital registration and security over the 35-year period. For the first 5 years of the NIIMP (2014-2018), an investment of $166.1 billion (N26.9 trillion) will be required to deliver quality infrastructure.
PROBLEMS ASSOCIATED WITH THE IMPLEMENTATION OF INFRASTRUCTURE POLICIES IN AFRICA Observations: Despite improvements in the policy environment, sub- Saharan Africa's share of foreign direct investment (FDI) in developing countries continues to decline. Although SSA has reformed its institutions, improved its infrastructure and liberalised its FDI regulatory framework, the degree of reform has not been as effective compared with the reform implemented in other developing countries. As a consequence, relative to other regions, SSA has become less attractive for FDI. An important implication of these results is that in a competitive global economy, it is not enough just to improve one's policy environment: improvements need to be made both in absolute and relative terms.
PROBLEMS ASSOCIATED WITH THE IMPLEMENTATION OF INFRASTRUCTURE POLICIES IN AFRICA Other problems of infrastructure policies in SSA are: Inadequate regulatory and legal frameworks Weak institutions Poor transparency and accountability Lack of resources Weak legal framework Lack of technical capacity Frequent changes in the management of agencies Policies do not ensure adequate participation of local engineering firms (manufacturing and services) and personnel in infrastructure delivery
PROBLEMS ASSOCIATED WITH INFRASTRUCTURE PLANNING IN AFRICA Lack of accurate data on demography Lack of accurate data on infrastructure entity Uncoordinated sectoral plans Frequent violation of procurement laws and procedures Inappropriate financing structure of projects Infrastructure policies not in sync with human development, manufacturing and employment policies Lack of unified engineering regulations and standards in Africa Frequent changes in the personnel handling infrstructure planning responsibilities
ROLE OF ENGINEERING PROFESSIONAL BODIES IN SUSTAINABLE INFRASTRUCTURE DEVELOPMENT Capacity building programmes for all cadres of 1. engineering personnel to enable them fully participate in infrastructure planning and development Development of acceptable engineering standards for use 2. on the continent Development of Annual or Bi-annual Infrastructure score 3. card and ranking system by the engineering professional bodies in each country. 1. South Africa, Ghana, Zambia and recently Nigeria have started. This will prevent the use of BAR (Build-Abandon-Rebuild) philosophy in procuring infrastructure, which is too expensive. FAEO is in the process of signing Memorandum of 4. Agreement with the African Union towards realising items 1 & 2 above.
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