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NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF)

  • Date of agreement: September 2005
  • Current volume of the fund: US$ 102 million
  • Financial contributors: Canada (CAD 25 million – equivalent to US$ 23.3 million), Denmark (DKK 22.7 million – equivalent to US$ 4.2 million), Germany (Euro 22 million – equivalent to US$ 28 million), Norway (NOK 45 million – equivalent to US$ 7.3 million), Spain (Euro 2 million –equivalent to US$ 2.7 million) , UK (GBP 10.9 million – equivalent to US$ 14 million), USAID (US$ 1 million) and AfDB (UA 14.3 million – equivalent to US$ 21.4 million)
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Background and Objectives

The NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund established to assist African countries, Regional Economic Communities (RECs), specialized agencies and related institutions by providing grant resources for: (i) preparing high quality and viable regional/continental infrastructure projects with a view to requesting financing from public and private sources; (ii) developing a consensus and partnership for project implementation; and (iii) promoting infrastructure projects and programs aimed at enhancing regional integration and trade. The IPPF directly contributes to the objectives of the Bank’s Ten Years Strategy and Regional Integration Strategy which retained regional infrastructure as a strategic priority sector. In addition, the regional focus of the NEPAD-IPPF makes it a key contributor to regional integration by interconnecting the infrastructure of countries and regions of Africa.

Areas of Focus / Sub-Sectors

The NEPAD-IPPF supports regional infrastructure development projects in the following sectors: transport, energy, ICT, and water resources management. The activities eligible for financing under the Fund are: (i) prefeasibility studies; (ii) feasibility studies; (iii) project structuring; (iv) capacity building for infrastructure development; and (v) facilitation and creation of an enabling environment for regional infrastructure development.

Target Beneficiaries

All Regional Member Countries of the Bank Group, RECs, Power Pools, River Basin Organizations, corridor authorities and other intra-African infrastructure-related institutions and specialized regional/continental institutions for infrastructure development are eligible for the NEPAD-IPPF Special Fund resources. The proposed activity must aim to support regional infrastructure development in the focus areas cited above.

Results and Milestones

Since 2005, NEPAD-IPPF has approved 76 grants for regional infrastructure projects, crowding in investment financing of over US$ 8.7 billion, thereby directly impacting Africa’s integration and development agenda. NEPAD-IPPF was specifically instituted to address the lack of investment-ready infrastructure projects, one of the key constraints to economic development in Africa. 
Key achievements include the: (i) North Core (Nigeria-Niger-Benin-Burkina Faso) 330KV Transmission Project; (ii) Multinational Burundi-Rwanda; (iii) Benin -Togo- Ghana Electricity Interconnection Project, (iv) Kenya-Uganda Oil Pipeline Project, (iv) Zambia-Tanzania-Kenya Power Interconnection Project, (vi) East African Submarine Cable (EASSy) Project, (vii) OMVG Electricity Project, (viii) ItheziThezi and Kariba North Bank (SAPP) securing financing through a PPP, Ghana-Burkina power interconnection project, etc.

Administration and Governance Structure

  • The instrument establishing the NEPAD-IPPF sets the AfDB as a trustee to serve as legal owner and holder in trust of the funds, assets and receipts constituting the fund's resources and to manage and apply these according to the provisions of the instrument.
  • The AfDB Board of Directors is assigned a decision making role in the management of the Fund.
  • The Oversight Committee (OC) of seven members was established. It is comprised of three representatives from the contributing donors (a member country of the Bank, or any country eligible to be a member country, as well as an organization acceptable to the Bank, may make contributions to the NEPAD-IPPF), two members representing the African Union and the NEPAD Secretariat, and two members representing the Bank. The OC provides general policy direction for NEPAD-IPPF activities. Its main function is to review the operational focus, the proposed areas of intervention and to ensure consistency with the Fund's policy thrust. The OC also reviews the annual report of activities financed through the Fund to ensure consistency with the NEPAD mandate and regional integration.

Strategic Business Plan 2016-2020 / Additional Resources Required

The strategic focus of NEPAD-IPPF over the next five years (2016-2020) is to support the AfDB’s High 5s, African Union’s Agenda 2063 and the UN’s Sustainable Development Goals (SDGs). 
NEPAD-IPPF aims to commit between US$160 Million to US$ 250 Million to prepare 60-80 projects expected to leverage US$16-25 billion in downstream financing. To achieve broader socio-economic impact, from 2017, NEPAD-IPPF will be making concerted efforts to mainstream Climate Change, Gender, Fragility and resilience and Jobs creation in project preparation activities. This will facilitate a more holistic and integrated approach and ensure that NEPAD-IPPF prepared projects have broader and more sustainable development impact.

Regional Infrastructure projects preparation require huge resources. The balance of the NEPAD-IPPF is inadequate to meet existing demands. Thus, the key priority of the Fund is the mobilization of additional resources from donors that are interested in infrastructure development.

Infrastructure & Partnerships Division Manager
Tel: +225 20 26 30 77