Donors commend NEPAD-IPPF’s operational performances
In 2018, disbursements on IPPF financed projects reached an all-time record of US$ 9.0 million.14/11/2018
The 28th NEPAD-Infrastructure Project Preparation Facility (NEPAD-IPPF) Oversight Committee Meeting held at Sandton Sun Hotel, Sandton City, Johannesburg, South Africa on 5th November 2018, has commended the operational performances of the Facility.
The meeting Chaired by Michael Andres Committee Chairman & Senior Project Manager at KfW Development Bank, brought together key players within the infrastructure sectors on the continent along with donor representatives who support the Special Fund.
These included the Bank’s Vice-president, Private Sector, Infrastructure and Industrialization, Pierre Guislain; Amadou Oumarou, Director, Infrastructure & Urban Development; as well as representatives from the African Union Commission and NEPAD Agency. Representatives from Project Executing Agencies such as RECs, Power Pools, River Basin and Corridors Organizations, among others, were also in attendance.
The Committee agreed that the NEPAD-IPPF Special Fund is an instrumental tool for funding Infrastructure Project Preparation that is essential for bringing bankable projects to the market for financial closure. Thus, the NEPAD-IPPF Special Fund remains a reliable provider of bankable infrastructure projects for Africa. Since it was established in 2005, 30 projects have reached financial closure with investments for implementation of US$ 24.1 billion within the four key sectors of infrastructure on the Continent.
The NEPAD-IPPF processed seven projects for approval with total commitments of US$ 11.5 million before the end of 2018. In addition, a total of US$ 11.6 million has been mobilized in co-financing during 2018. At the same period, disbursement of funds on all effective IPPF financed projects reached an all-time record of US$ 9.0 million and projected to reach US$ 11.5 million by the end of the year.
Furthermore, NEPAD-IPPF also registered a record high in terms of the number of projects closed; 14 Project Completion Reports (PCRs) and 14 Audit Reports processed. This is a clear indication that the Special Fund’s operational effectiveness has improved. In line with this accomplishment, nine studies were completed during 2018, indicating that the projects have reached bankability stage. In addition, five new projects reached financial closure.
The Oversight Committee members, Bank management and participants commended Mike Salawou, NEPAD-IPPF Fund Manager and his team for their hard work and innovation that resulted in the good performance achieved. ” I really appreciate the work you have done and the tremendous improvement on operational performance,” Andres said.
The Oversight Committee had requested an Independent Review of the NEPAD-IPPF Special Fund in order to take stock of its performance since inception, its impacts on infrastructure delivery on the continent in addition to its repositioning to better respond to emerging needs such as PIDA-PAPII, AIF, Climate Smart and Sustainable Infrastructure, PPPs, Industrialization, 4th Industrial Revolution, among others. During the meeting, the committee had the opportunity to interact with the PriceWaterhouseCoopers Consultant recruited by Management. The review would be concluded by March 2019.
“Despite its achievements, the NEPAD-IPPF needs to continue to improve its operations on the base of “a New Business Model” and in so doing remain the preferred partner for successful preparation of Regional Infrastructure Projects for the continent,” Oumarou said.
The meeting ended on a good note with a strong endorsement of the NEPAD-IPPF Special Fund as the key instrument for project preparation to accelerate the delivery of infrastructure on the continent.
The NEPAD-IPPF Special Fund is a Multi-donor Facility hosted at the African Development Bank and supported by Canada, Germany, United Kingdom, Norway, Denmark, and Spain. The Fund was set up under the instruments establishing the Special Fund with a key mandate of providing general policy direction, as well as ensuring effective governance for the activities of NEPAD-IPPF Special Fund.