African Development Bank: Climate Change and Infrastructure Development

1. African Development Bank: Climate Change and Infrastructure Development ADF VII, Addis Ababa, Ethiopia 14 October, 2010 Mr. Emanuel Nzabanita Acting Manager Energy Division Eastern and Southern Regions

2. The infrastructure Deficit • Infrastructure deficiency significantly hinders the possibilities for economic expansion. • Africa’s Infrastructure is weak and costs significantly higher than other parts of the developing world. • As a result, MDG’s are far from being met • ICA’s (AICD) report, finds that Africa needs to invest $93.4 billion per year in energy, telecoms, transport and water infrastructure over the next decade.

3. Africa’s Investment requirement ($Bn) • Power is Africa’s largest infrastructure challenge

4. Missing Links in Africa’s Infrastructure • The existing missing Links in Africa’s Infrastructure need to be closed. • Road Network • Energy • Broadband ICT

5. Infrastructure Missing Links-Road Network

6. Infrastructure Missing Links-Energy Programs

7. Infrastructure Missing Links-Broadband ICT Programs

8. Infrastructure Investment Benefits • Facilitates regional integration • Enables intra regional trade • Connects regions to global markets • Attracts private sector investment • Makes it possible to harness regional comparative advantages • Reduces impacts of disasters (flooding/drought).

9. Climate Change Additional Burden to Infrastructure Development. • Given the current infrastructure challenges, climate change only increases the problem.

10. Climate Change: Additional Burden to Infrastructure Development. • Heavy rainfall events cause • Disruption of settlements, commerce, transport and societies due to flooding; pressures on urban and rural infrastructures and loss of property. • Areas affected by drought will experience • Water shortages for communities and industry • Reduced hydropower generation potentials; • Increased potential for population migration. • Without adaptation measures, CC will strain current infrastructure and widen the financing gap.

11. Need to Build Climate Resilient Infrastructure in Africa • Ensuringtransition to a low carbon economy by investing in high performance infrastructure and green technologies. • Building Climate resilience to enable projects and programs withstand the negative effects of a changing climate • Upgrading existing infrastructure to cope with changing hydrology and rising temperatures. • Developing climate related information for decision-making processes.

12. Need to Promote Regional Integration • Connecting Africa to itself and the rest of the world will increase our adaptive capacity. • Transport Corridors • Power Pools • Maritime Ports • Regional Broadband ICT Networks etc • Integration reduces the cost of doing business and creates larger markets for private sector participation.

13. Programme for Infrastructure Development in Africa (PIDA) • Launched in 24 July 2010 in Kampala, Uganda during the 15th African Union heads of State and Government summit. • Led by AUC, NEPAD Secretariat and the African Development Bank (Executing Agency). • Objective to promote socio-economic development and poverty reduction through improved access to integrated regional infrastructure. • Programme to ensure the integration of Climate resilient infrastructure.

14. Solar Thermal Power Station, Morocco • This plant combines solar and thermal power • It will produce up to 2000 MW of electricity with an annual saving of one million tons of oil.

15. The Sahanivotry Mini Hydro Power Plant, Madagascar • The project has an installed capacity of 15 MW and an average gross electricity generation of 90 GWh • It will produce 10% of the country’s total supply of electricity

16. Main One Cable Project: West Africa • A high-tech broadband cable which will enhance access to reliable and timely information in West Africa. • Instrumental in assisting our Regional Climate Centres and relevant institutions in generating early warning systems necessary for communities to build climate change defense systems.

17. AfDB’s CC Financing Mechanisms • AfDB has set up important mechanisms: • Congo Basin Forest Fund (CBFF) • Africa Water Facility (AWF) • ClimDev-Africa Special Fund • Africa Carbon support Project • Proposed Africa Green Fund (AGF) • Leveraging additional funds, through: • Climate Investment Funds (CTF and SCF) • Global Environment Facility (GEF)

18. Conclusion • Climate change constrains development efforts in Africa. • Improved Infrastructure availability will reduce vulnerabilities and increase adaptive capacities of African economies. • Low-carbon energy is fundamental to mitigation and sustainable development. • Widespread access to water is necessary for adaptation priorities • ICT has a transformational impact by enabling private sector access finance and increasing market efficiency.

19. Conclusion • The African Development Bank remains focused on suitable infrastructure development and has extended the climate change action plan covering the period from (2011 – 2015). • The Bank is also playing a leading role in dialogue and building consensus on how to meet Africa’s climate change challenges.

20. Thank You For further Details, Contact www.afdb.org e.nzabanita@afdb.org