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Approved in October 2016, the Somalia Infrastructure Fund (SIF) is one of the financing windows under the Somalia Development and Reconstruction Facility (SDRF) of the New Deal COMPACT for Somalia.
The Fund’s goal is to support and accelerate Somalia’s inclusive and sustainable economic recovery, peace and state building within the context of AfDB’s Strategy for Addressing Fragility and Building Resilience in Africa. The focus of the SIF is the rehabilitation and development of infrastructure, and related skills development and institutional capacity building. The Fund takes advantage of the Bank’s existing Transition Support Facility to mobilize resources.
The SIF is governed through the SDRF governance structure as set out in the Somali Compact. The SDRF three-tiered structure comprises of the:
The SIF is managed and administered by the AfDB through a management unit based in the Bank’s Kenya offices. This unit will be staffed with experts to ensure that infrastructure projects are prepared and designed appropriately, and delivered and monitored effectively.
During the period 2014-16, Infrastructure Needs Assessments were completed in the Transport, Energy, Water and Sanitation, and ICT sectors, which helped to build a pipeline of projects for the SIF.
This pipeline of projects, and its initial two projects, were approved by the SDRF Steering Committee in November 2016. These projects were subsequently approved by the Bank’s Board in December 2016, and are valued at US$ 19 million, of which US$ 17.2 million is from the Bank’s own resources.
The fund’s Operations Manual is currently being finalised.
About US$ 13.7 million has been committed by three donors, of which US$ 3.7 million has been paid in.
The Bank will continue to set aside resources for Somalia from internal sources and internally managed trust funds. These resources are expected to finance or co-finance about US$ 40 million worth of projects in the SIF pipeline over the next three years.
The SIF has received US$ 262,900 from the Korea-Africa Economic Cooperation (KOAFEC) trust fund for a feasibility study to establish a Somali Electrification Agency; and US$ 77,650 from the Nigeria Technical Cooperation Fund (NTCF) to undertake a study to prepare a project to refurbish vocational training centre(s) in Somalia. Both KOAFEC and NTCF are trust funds managed by the Bank.