CONFERENCE PRESENTATIONS
TABLE OF CONTENTS Page 3
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Mr. Benoit La Salle, Founder and Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation President and CEO of SEMAFO Energy. Mr. Joachim P. Ouedraogo, Chief of staff of Regional Market, Trade, Competition and Cooperation, Commission of the Economic and Monetary union OF West Africa
Page 51
Mr. Derrick Lichti, Principal Consultant, CPCS
Page 71
Mr. Bertrand Millot, Vice President, Cordiant Capital
Page 78
Mr. Roger Gervais, President, General Director, SDV Logistics Canada Inc.
Page 94
Mrs. Anne-Pascale Richardson, Vice-President, PharmAfri-Can Inc.
Page 126 Mrs. Véronique Doyon, Vice President of Water Department and Rural Development, SNC-Lavalin Page146
Mr. Edouard Préfontaine, Director, Corporate Development & Project Financing, SEMAFO Énergie
Page 163
Mr. Arif Mohiuddin, Partner, Vice-President West Africa, CPCS
Page 184
Mr. Martin Beaudry, Director of water supply and sanitation, SNC-Lavalin
Page 212
Mr. David Creighton, President Cordiant Capital
Page 214
Mr. Peter Kieran, President, CPCS
Page 223
Mr. Benoit La Salle, Founder and Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation President and CEO of SEMAFO Energy
Page 230
Mr. Timothy Turner, Private Sector Director, African Development Bank
Page 241
Mr. Amr Kamel, AFREXIMBANK
Page 278
Mrs. Diane Belliveau, Regional Manager – Africa, Export Development Canada (EDC)
Page 300
Mr. David Fulton, Head USA and Canada
Operations
Director,
Benoit La Salle, FCPA, FCA, MBA, Founder and
Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation President and CEO of SEMAFO Energy. Mr. La Salle is a Fellow Chartered Accountant (FCPA, FCA), a member of the Canadian Institute of Chartered Accountants and holds a Commerce Degree and a Masters of Business Administration. In 1980, Mr. La Salle founded Grou, La Salle & Associates, Chartered Accountants. In 1995, Mr. La Salle founded SEMAFO Inc. and held the position of President and Chief Executive Officer of the organization until August 2012. He now acts as Executive Vice-Chair of the Board of Directors of SEMAFO, Chairman of Foundation SEMAFO and President and Chief Executive Officer of SMF Energy. In the last quarter of 2012, Mr. La Salle has been appointed Chairman of Canadian Council of Africa (CCAfrica), Sama Resources and Kanosac. Mr. La Salle is the former Chairman of the Board of Plan International (Canada), one of Canada’s leading NGOs.of
SUB-SAHARAN AFRICA CANADA IT’S NOW OR NEVER Benoit La Salle March 2013
Megatrend: it is the dawn of Sub-Saharan Africa (SSA) Working-age population worldwide 7 000 000 6 000 000 5 000 000
36%
4 000 000 33% 28%
3 000 000 18%
2 000 000
9%
China
India
ROW
2100
2090
2080
2070
2060
2050
2040
12%
2030
2010
2000
1990
1980
More developed regions
2020
17%
1970
0
21%
34%
1960
1 000 000
15%
7% 23% 14% 22%
1950
(Thousands)
11%
SSA
Source: United Nations
2
SSA GDP is in top 20 Some references (USD trillion in 2012)
GDP current
GDP current PPP
France
2.6
India
4.7
Brazil
2.4
Brazil
2.5
India
1.9
France
2.2
Spain
1.3
SSA
2.1
SSA
1.3
Mexico
1.7
Mexico
1.2
Korea
1.6
Korea
1.1
Spain
1.4
Indonesia
0.9
Indonesia
1.2
Turkey
0.8
Turkey
1.1
Source: IMF WEO Oct 2012
3
What do we see today?
4
SSA countries show the highest growth Ten fastest growing countries* (Annual average GDP growth rate in %)
2001-2010
2011-2015 (f)
Angola
11.3
Iraq
11.0
China
10.5
Ghana
9.4
Myanmar
10.3
China
8.5
Nigeria
8.9
Mozambique
7.8
Chad
8.6
Guinea
7.6
Ethiopia
8.3
Rwanda
7.6
Kazakhstan
8.3
Niger
7.4
Mozambique
8.0
Zambia
7.4
Cambodia
8.0
DR Congo
7.2
Rwanda
7.8
Cambodia
7.0
• Countries with population above 10 million Source: IMF WEO Oct 2012
5
The trend is very supportive GDP growth of SSA countries (Annual GDP growth rate in %) Forecast
8 7 6
5 4 3 2 1 0 -1 -2 1980
1985
1990
1995
2000
2005
2010
2015
Source: IMF WEO Oct 2012
6
Technology (mobile) is breaking through Mobile: the door to modernity
Source: MobileMarketingWatch
. Africa has twice as many mobile phones as the USA. . M-Pesa (Kenya) has become a global leader in mobile banking and is selling its technology to India.
. Mobile phones are decreasing in cost and providing numerous services. . Nigeria is distributing subsidized inputs to 1.5 million farmers through cell phones. 7
Growth is not inclusive enough Extreme poverty headcount ratio (%)
Sub-Saharan Africa East Asia & the Pacific Required Millenium Development Goal progress
Source: World Bank 2012
. The ILO* estimates that between 2000 and 2007, the working age population grew by 96 million but only 63 million jobs were created. * International Labour Organization
. Unemployment hits the youth. . Most countries are not on track to achieve the Millennium Development Goals by 2015.
8
What are the drivers of change?
9
Macro policies have produced results Foreign exchange reserves / External debt 70% 60%
50% 40% 30% 20% 10%
0% 1990 Foreign exchange reserves / External debt
2011 External debt / GDP
Source: IMF, World Bank data
. Debt reduction strategies and external trade oriented policies has resulted in a dramatic improvement of SSA countries savings and solvency.
. All recent sovereign bond issues are oversubscribed. . 9 sovereign wealth funds created. 10 to be created soon. 10
Foreign financing to SSA has surged Destination of funds: public vs private
Source: IMF
. Foreign flows: x10 in 10 years. . Remittances: over US$ 30 billion per year.
. Funds going to the private sector: average return on investment is the highest in the world. 11
There is a dramatic shift in trading partners Destination of SSA exports Non oil exporting countries
Oil exporting countries
Source: IMF
. European investment is shrinking and China, India an Brazil are taking over . New trade is not coming from aid but is rather resource driven
. Diversification of partners has been an engine for growth: reduction of export volatility, better terms of trade, scale economies. 12
Africa has a buried treasure A vast potential in natural resources
Oil
10%
Gold
40% Share of world reserves
Chromium & Platinum
80% to 90%
Source: Mc Kinsey Global Institute, June 2010
. “African subsurface value per km² is estimated at around $25,000 compared to $125,000 in developed countries”*, shows Africa is underexplored.
. Africa’s mining sector accounts for just 10% of the world production. . Recent discoveries are impressive.
* Collier and Venables, 2008
13
Africa can help feed the world SSA: 45% of the potential available land Global surface in millions of ha
Source: FAO, Fischer and Shah 2010
. Productivity can be boosted: no country in Africa is achieving more than 30% of the potential yield on currently cultivated areas.
Asia
456
736
2,047
Rest of the world
54%
89
MENA
46%
326
Latin America
Sub Saharan Africa
438
Potential arable land Cultivated land
. Africa is ripe for a green revolution and the first stage of this revolution is the land rush we are witnessing now.
(World Bank) 14
Demography supports general productivity Dependency ratio Non working population (<15;64<) for 100 people at working age (15-64)
100 90 Brazil
80
Western Europe
70
China India
60
Sub-Saharan Africa
50 40 2100
2090
2080
2070
2060
2050
2040
2030
2020
2010
2000
1990
1980
1970
1960
1950
30
Source: United Nations
. SSA has the worst dependency ratio. Twice as much as China.
. However, it is constantly declining since 1985, giving a boost to Africaâ&#x20AC;&#x2122;s competitiveness. 15
Efforts are made for better education Secondary school gross enrolment rates
Source: United Nations, Renaissance
. Current SSA high school enrollment level at the same level of Mexico and Turkey in 1975
. Concerns about quality facilities and teachers remain
16
Urbanization is stimulating growth The development of cities in Africa
Infrastructure Infrastructure Infrastructure The labour force is available!
17
Perception is still a big obstacle Perception of Africa relative to other regions Africa is less attractive than…
Africa is more attractive than…
Asia North America Middle East Western Europe Latin America Eastern Europe Central America Former Soviet States -50
-40
-30
-20
-10
0
Respondents with no presence in Africa
10
20
30
40
Respondents wth a presence in Africa
Source: Ernst & Young’s 2012 Africa attractiveness survey. Total respondents: 505
. For investors with no presence in Africa, the continent is still viewed as relatively unattractive against all regions.
. It is the contrary for investors having a presence in Africa. . Major factors: political instability, corruption, difficulty of doing business. 18
What to do next?
19
Implement a new public management method SSA’s absorption capacity is far too low
SSA needs to implement countless projects to boost its development
Foreign/local funds and partners are increasingly available
Despite this very favorable context, the result has been disappointing: too many projects take too long to implement when they do not fail. Governments need to implement a new management method focused on the rapid execution of development projects with the creation of highly specialized teams:
Project Delivery Squads 20
Innovate in infrastructure finance Infrastructure density in SSA is weak (as a percentage of the density of other low income countries)
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Source: Economic Commission for Africa, African Union 2012
Another US$ 40 billion per year must be mobilized. Possible sources: China, investment funds, development banks 21
« The risk of not going to Africa is to find that it is too late to get there » Lord Boateng, former British High Commissioner in South Africa and director of Aegis
MERCI , THANK YOU , BARKA, ANITCHÉ, FOFO ……
22
References . Africa’s natural resources in a global context, Raf Custers & Ken Matthysen, IPIS, August 2009.
. It’s time for Africa, Africa attractiveness survey, Ernst & Young, March 2011.
. Land grab or development opportunity?, Lorenzo Cotula, Sonja Vermeulen, Rebeca Leonard and James Keeley, iied, FAO, IFAD, 2009.
. Economic Report on Africa 2011, Economic Commission for Africa, African Union, March 2011.
. Sustainability and security of the global food supply chain, Rabobank, 2010.
. Africa Progress Report 2011, Africa Progress Panel, April 2011.
. The World Health Report, World Health Organization, 2010. . China, Africa and the International Aid Architecture, Deborah Bräutigam, African Development Bank Group, April 2010. . Rising Global Interest in Farmland, World Bank, September 2010. . Sub-Saharan Africa: Resilience and Risks, Regional Economic Outlook, International Monetary Fund, October 2010. . African acceleration, Société Générale, October 2010. . Top Banques, African Business, October 2010. . The struggle underground, The Africa Report, October 2010.
. Anticipated trends in the use of global land and water resources, F. Nachtergaele, J. Bruinsma, J. Valbo-Jorgensen, and D. Bartley, FAO, 2010. . China in Africa, A Macroeconomic Perspective, Benedicte Vibe Christensen, December 2010. . Africa, The new frontier for growth, Accenture, 2010. . Africa’s Infrastructure, A Time for Transformation, Vivien Foster and Cecilia Briceño-Garmendia, World Bank, Agence Française de Développement, 2010.
. Africa’s impressive growth, The Economist, January 2011. . Fulfilling Africa’s Potential, Goldman Sachs Global Economics, January 2011. . The Mining sector, an opportunity for Growth in Africa?, Proparco, January 2011. . Africa‘s Future and the World Bank‘s Support to It, World Bank, February 2011.
. Sub-Saharan Africa: Recovery and New Risks, Regional Economic Outlook, International Monetary Fund, April 2011. . Africa’s pulse, World Bank, April 2011. . The Middle of the Pyramid: Dynamics of the Middle Class in Africa, African Development Bank, April 2011. . Foreign aid, trade and development, The strategic presence of China, Japan and Korea in sub-Saharan Africa, Dr. Johan Lagerkvist, The Swedish Institute of International Affairs, April 2011. . Agribusiness for Africa’s prosperity, UNIDO, May 2011. . Transformation through Infrastructure, Issues and concept Note, World Bank, June 2011. . African Agriculture: From Meeting Needs To Creating Wealth, Mo Ibrahim Foundation, 2011. . Private equity and investment in Africa, Yingni Lu and John Battersby, SouthAfrica.info, July 2011. . Africa, The bottom billion becomes the fastest billion, Renaissance Capital, July 2011. . Africa in 50 Years’ Time, The Road Towards Inclusive Growth, African Development Bank, September 2011.
. Rising Global Interest in Farmland, World Bank, September 2011. . Sub-Saharan Africa: Sustaining the Expansion, Regional Economic Outlook, International Monetary Fund, October 2011. . Growth and poverty reduction in Africa in the last two decades, Andy McKay, University of Sussex, December 2011. . Africa’s population, Miracle or Malthus, The Economist, December 2011.
23
References . World Investment Report, UNCTAD, 2011.
. African Economic Outlook 2012, OECD, 2012.
. Classement des Banques, Jeune Afrique, 2011.
. Global Development Finance 2012, World Bank, 2012.
. Yes Africa can, World Bank, 2011.
. Inclusive Wealth Report 2012, UNEP, UNU-IHDP, 2012.
. The Africa Competitiveness Report 2011, Africa Commission, World Economic Forum, 2011.
. Assessing Progress in Africa toward the Millennium Development Goals, MDG Report 2012, Economic Commission for Africa, Africa Union, African Development Bank, UNDP, 2012.
. Will the lion roar in 2012?, African Business, January 2012. . Growing with Africa’s consumers, Bain & Company, February 2012. . Defragmenting Africa, Marcelo Giugale, Huffington Post, February 2012. . BRICs’ Philosophies for Development Financing and Their Implications for LICs, Nkunde Mwase and Yongzheng Yang, International Monetary Fund Working Paper, March 2012. . Economic Report on Africa 2012, Economic Commission for Africa, African Union, March 2012.
. Africa Human Development Report 2012, UNDP, 2012.
. World Development Indicators, World Bank, 2012. . World Investment Report, UNCTAD, 2012. . Is Africa’s Recent Economic Growth Sustainable?, Ifri October 2012 . Global Trends 2030, Alternative Worlds, National Intelligence Council, December 2012.
. Building Bridges, Africa attractiveness survey, Ernst & Young, March 2012. . Sub-Saharan Africa: Sustaining Growth amid Global Uncertainty, Regional Economic Outlook, International Monetary Fund, April 2012. . How can Africa compete with China, Marcelo Giugale, Huffington Post, April 2012. . Africa Losing Billions of Dollars Due to Trade Barriers, Mohammed Suleman, allafrica.com, April, 2012. . The New Business of Africa: Markets and People transforming the continent, Fair Observer, May 2012. . Jobs, Justice and Equity, Africa Progress Panel, June 2012.
. Waking up to the maths of malaria, Ed Cropley, AlertNet, June 2012. . Sub-Saharan Africa Region, Global Economic Prospects, World Bank, June 2012. . Assessing Africa’s Policies and Institutions, CPIA Africa, World Bank, June 2012. . The Millennium Development Goals Report, United Nations, July 2012.
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Joachim Ouedraogo, Chief of staff of Regional Market,
Trade, Competition and Cooperation, Commission of the Economic and Monetary union OF West Africa Mr. Joachim Ouedraogo, from Burkina Faso, holds a PhD in Economics option “Money-Finance-Bank” of the Social Sciences University of Grenoble. While working for Burkina Faso’s Administration, he served in the Treasury Department and the Prime Ministry Offices successively as Head of Economy and Finance. Recruited in 1996 by the WAEMU Commission, Mr. Ouedraogo was promoted in 1997 as Director of Multilateral Surveillance. Since May 2007, he is Director of the Commissioner’s Office for Regional Market, Trade, Competition and Cooperation.
Conférence de Montréal sur l’Infrastructure Présentation dans le cadre des échanges de la 2ème Edition sur l’essor des infrastructures pour le développement de l’Afrique (Exemple type de l’espace UEMOA)
Montréal du 19-20 mars 2013
1
Plan de la Présentation 1-
Présentation sommaire de l’espace UEMOA par rapport au continent de l’Afrique;
2-
Stratégie et état de mise en œuvre en matière d’infrastructures (réalisations, perspectives et mode de mise en œuvre);
3-
o
Infrastructures de transport
o
Sous secteur ferroviaire
o
Secteurs aérien et maritime
o
Secteur de l’énergie et développement durable
o
Domaine des aménagements hydroagricoles et sécurité alimentaire
Opportunités d’investissements privés dans l’espace UEMOA o
Secteur des mines
o
Les TIC
o
Cadre législatif et règlementaire
2
Plan de la Présentation (suite) 4-
5-
Opportunités d’investissements devant intéresser le secteur privé canadien dans l’espace UEMOA Secteur de l’énergie Secteur des transports Secteur des mines et de la géologie Secteur agrobusiness Conclusion
3
1- Présentation de l’Union Économique & Monétaire Ouest Africaine Huit Etats membres, un destin commun - Bénin - Burkina Faso - Côte d’Ivoire - Guinée Bissau - Mali - Niger - Sénégal - Togo Créer le 10 janvier 1994 Superficie: 3509600 Kilomètres carrés Populations: 88 millions d’habitants
4
Quelques chiffres caractéristiques de l'Union Économique & Monétaire Ouest Africaine (suite) Union douanière avec monnaie commune Taux de croissance démographique: 2,6 % Taux de croissance du PIB réel: 3,1 % PIB réel à prix constant: 20 298,3 milliards de FCFA PIB nominal: 25 863, 6 milliards de FCFA Taux d’inflation annuel: 2,3 %
5
2-
Stratégie et état de mise en œuvre en matière des infrastructures
Infrastructures de transport les routes Harmonisation des programmes d'entretien périodique et courant du réseau communautaire. 20 033 km Uniformisation et amélioration du niveau de service des routes revêtues du réseau communautaire. 15 800 km Aménagement et bitumage des maillons manquants du réseau communautaire. 4 233 km Promotion de la liaison et de l’interconnexion avec les autres pays de l’Afrique de l’Ouest. 7 028 km
Mise en œuvre du programme de facilitation : 11 PCJ et mise en place d’1 Observatoire des Pratiques Anormales (OPA) Financement et mise en œuvre : PTF, Ressources propres ,
2-
Stratégie et état de mise en œuvre en matière des infrastructures (suite) les routes (suite)
Entretien périodique & réhabilitation : 12 500 km ces 10 dernières années Aménagement et butinage : 2 500 km Mise en place dans les Etats membres des fonds routiers de 2ème génération pour assurer l’entretien courant du réseau routier
Construction de 8 stations de pesage : contribuer à l’entretien des routes (Charge à l’essieu règlementaire = 11 tonnes/camion alors qu’on va parfois à 27 tonnes/camion) Construction de 5 postes de contrôle juxtaposés aux frontières Mise en place de l’OPA sur 6 corridors routiers
2-
Stratégie et état de mise en œuvre en matière des infrastructures (suite) le sous secteur ferroviaire
Programme retenu • Réhabiliter et améliorer les liaisons ferroviaires existantes (3 192 km) • Assurer l’interconnexion des réseaux existants par la construction des tronçons manquants (2 375 km). Réalisations • Étude de faisabilité pour l’interconnexion des réseaux ferroviaires de la CEDEAO ; • Étude de faisabilité de la boucle ferroviaire CotonouNiamey-Ouagadougou-Abidjan • Étude de faisabilité de l’interconnexion des chemins de fer du Sénégal, du Mali et du Burkina Faso
2-
Stratégie et état de mise en œuvre en matière des infrastructures (suite) Les secteurs aérien et maritime
Aérien Réalisations: Règlementations dans le domaine de la sécurité et la sureté Programme de mise aux normes des aéroports (prévu) Maritime Réalisations: Plusieurs textes règlementaires pris; Programme développement et de modernisation des ports (prévu)
2-
Stratégie et état de mise en œuvre en matière des infrastructures (suite) Le secteur de l’énergie
Existence d’un potentiel énergétique dans l’espace UEMOA
* Les réserves disponibles sont estimées à : 44 millions de tonnes de pétrole brut ; 23.300 millions de mètres cube de gaz naturel ; 85 millions de tonnes de charbon ; 180,5 milliers de tonnes pour l’uranium soit environ 7% des réserves mondiales ; • un potentiel prouvé d’hydroélectricité de 5 860 MW. • • • •
Le secteur de l’énergie (suite) - Accès limité à des services énergétiques modernes, fiables et à un coût abordable; - Sérieuses difficultés pour satisfaire les besoins énergétiques des populations, des administrations et de l’industrie (délestage pouvant atteindre 12
heures en moyenne par jour – déficit estimé à plus de 100 GW – coût élevé variant entre 13 cents en dollars canadien et 38 cents le Kwh);
Initiative Régionale pour l’Énergie Durale (IRED) VISION UEMOA 2030 o
Accès de tous à l’énergie à bas prix ;
o
Construction d’un vaste marché d’échanges d’énergie électrique intégré et harmonisé à l’échelle de l’Afrique de l’Ouest;
o
Déplacement de la structure de la production énergétique vers les énergies renouvelables (en portant la part de celles-ci de 36 % en 2008 à 82 % en 2030).
o Privilégiation d’un PPP dynamique -> mise en œuvre
Le secteur de l’énergie (suite) Initiative Régionale pour l’Énergie Durale (IRED) VISION UEMOA 2030 o Accès de tous à l’énergie à bas prix o Construction d’un vaste marché d’échanges d’énergie électrique intégré et harmonisé à l’échelle de l’Afrique de l’Ouest; o Déplacement de la structure de production énergétique vers les énergies renouvelables en la portant de 36 % en 2008 à 82 % en 2030;
o Privilégiation d’un partenariat public-privé (PPP) dynamique pour la mise
12
Le secteur de l’énergie (suite) Mise en place d’un programme d’urgence dans le cadre de l’IRED
Résorption du déficit de l’offre d’électricité à moyen terme – disponibilité de l’énergie dans tous les Etats membres- promotion des économies d’énergie
Construction de centrales thermiques-Renforcement des interconnexions aux réseaux électriquesRéalisation d’une étude pour l’installation des centrales solaires ;
Stratégie et état de mise en œuvre en matière des infrastructures (suite) Domaine des aménagements hydroagricoles et de la sécurité alimentaire
Ressources naturelles et agricoles encore importantes en dépit de l’exploitation abusive et de l’effet néfaste des changements climatiques; Récurrence des crises alimentaires Manque de financement; Perspectives de relance de la production et de la productivité agricole et corrélativement de la transformation et de la commercialisation Accent mis sur la maîtrise de l’eau dans les périmètres hydroagricoles; Maîtrise de l’eau à travers les aménagements hydroagricoles et construction des infrastructures de production;
Aménagements hydroagricoles des périmètres de terre par les Etats membres et par l’Union pour 21000 hectares dont 8000 hectares destinés à l’aménagement des bas-fonds dans les Etats membres et 13000 hectares au niveau de 14 l’Office de du Niger.
Aménagements hydroagricoles (suite) L’ensemble de ces aménagements sont destinés à deux types d’exploitation: Petite échelle - production familiale pour l’autosuffisance alimentaire Grande échelle - mécanisation de l’agriculture Transformation des produits agricoles et réalisation des infrastructures de mise en marché
15
3- Opportunités d’investissements privés dans l’espace UEMOA
Le secteur des mines Existence d’un potentiel minier très diversifié Existence d’un cadre institutionnel approprié pour les investissements miniers à savoir: - Adoption de la Politique Minière Commune par l’harmonisation des cadres réglementaires des activités minières et reposant sur 6 grands principes (non discrimination – clarté, simplicité et transparence flexibilité – compétitivité - durabilité); - Adoption du code minier communautaire en 2003; - Adhésion des Etats membres aux instruments juridiques internationaux (Processus de Kimberley pour la certification du diamant, l’Initiative de Transparence dans les Industries Extractives (ITIE).
16
Opportunités d’investissements privés (suite) Exemples de projets devant intéresser le secteur privé canadien dans le domaine des mines i-
Projet d’appui et d’accompagnement du secteur minier de l’espace UEMOA pour un coût total de 250 milliards sur 2012-2018;
ii-
Projet d’exploration du secteur minier au Burkina Faso, Niger, Mali et le nord du Bénin et du Togo.
17
Opportunités d’investissements privés dans l’UEMOA (suite) Les TIC Engagement total des Etats membres dans la transition vers le numérique; Accès à la communication Réduction des coûts de téléphone Créations d’emplois
Développement des infrastructures liées au numérique dans un contexte de très grande libéralisation du secteur 18
4-
Opportunités d’investissements devant intéresser le secteur privé canadien dans l’espace UEMOA
Quelques exemples de projets devant intéresser le secteur privé canadien Secteur de l’énergie et développement durable
i-)
Projet d’aménagement hydroélectrique d’Adjaralla avec un coût total 162 milliards sur 2012-2016;
ii-)
projet d’interconnexion électrique 330 KV entre la ligne Burkina Faso / Mali pour un coût total de 74 milliards FCFA sur une période de 2012-2016
19
Opportunités d’investissements devant intéresser le secteur privé canadien dans l’espace UEMOA (suite) Quelques exemples de projets devant intéresser le secteur privé canadien (suite) Secteur du transport i-) Projet de réhabilitation et de prolongement de l’axe ferroviaire Cotonou-Parakou-DossoNiamey pour un coût total de 215 milliards FCFA
ii-)
Projet de construction de la voie ferrée NiameyTerra-Dori-Kaya (Burkina) pour un coût total de 146 milliards FCFA sur 2012-2016
iii-)
Projet de construction du second port de Ziguinchor au Sénégal pour un coût total de 40 milliards sur la période 2012-2016
iv-
Projet de construction de l’autoroute Abidjan (Côte d’Ivoire) – Ouagadougou (Burkina Faso)
20
5- Conclusion -
Besoins encore immenses en dépit des progrès réalisés;
-
Faiblesse des infrastructures comme principal défi à relever;
-
Poursuite de la promotion d’une gouvernance économique et financière, politique et minière favorable au développement des investissements;
-
Promotion du programme régional d’amélioration du climat des affaires (PRACA)
21
Conclusion (suite) Les efforts engagés par l’Union
Existence d’un programme fédérateur constituant un cadre de référence pour l’investissement en vue de contribuer durablement à la lutte contre la pauvreté et l’insécurité alimentaire (Programme Économique Régional de l’UEMOA (PER-UEMOA)
102 programmes & projets intégrateurs pour un coût total de 5763 milliards FCFA
Beaucoup de projets d’investissement par le secteur privé font partie de ces 102 projets
Disponibilité des fiches de projets pour le secteur privé canadien 22
Derrick Lichti, Principal Consultant, CPCS Mr. Lichti has been with CPCS since 2004. The head of CPCSâ&#x20AC;&#x2122;s modeling practice, he has developed operations, traffic, and financial models on numerous rail, port, urban transit, and power mandates. Mr. Lichti has worked in Canada, Nigeria, Saudi Arabia, Botswana, South Africa, Namibia, Tanzania, Kenya, Sierra Leone, Liberia, Mozambique, and Zimbabwe for both public and private sector clients. Most recently, he has completed railway rehabilitation studies in Tanzania and Zimbabwe as part of larger CPCS teams. Derrick has a degree in Systems Design Engineering from the University of Waterloo.
Rail Transportation in Sub-Saharan Africa CC Africa â&#x20AC;&#x201C; Africa Rising Conference
Introduction
Consultant with CPCS Infrastructure consultancy specializing in Power, Rail, Ports, Urban Transit, and Urban Development HQ in Ottawa, full-time offices and divisional HQ in Nairobi and Abuja
Presentation Outline
Overview of the rail concessions in Africa – –
What has happened? A look at some of the key issues
Take a closer look at the RAHCO/TRL railway in Tanzania (formerly TRC)
Rail Service in Africa
51 operating railways in Sub-Saharan Africa 16 concessions to date The privatization route has been a rough one Mixture of meter gauge, cape gauge, and standard gauge
Rail Service in Africa - Issues
Despite successful closing of the transactions, the railways have failed to perform well – – –
Uneven playing field: continued development of the road network Traffic has not materialized as expected Concession were not capitalized well and ran into problems when cash flows did not grow sufficiently
Rail Service in Africa - Issues
Deferred maintenance –
– – –
Track repairs not performed on a timely basis Locomotives used beyond their service lives and major overhauls are often delayed Maintenance backlogs continue to grow Level of service declines • Speed restrictions • Poor rolling stock availability • Difficult to maintain schedules and provide
consistent service to customers, meanwhile a batch of trucks is often waiting to move the cargo for your customer
Rail Service in Africa - Issues
Passenger Service Obligations –
– – –
Cash flows typically don’t even cover operating costs, let alone capital costs Tariffs are typically regulated Requires cross-subsidies from freight (who are cash-strapped as it is) or from the government Many are operating old and deteriorated coaches beyond expected service lives • Unsafe • No available money to replace them
–
Mixing passenger and freight service on the same lines will slow down the freight service, making it less competitive
Rail Service in Africa - Issues
Rail Service - Issues
The road has captured traffic due to: –
– –
Uncompetitive transit times Poor reliability of service Added convenience of door-to-door service
All this despite road tariffs typically being higher than rail Re-capturing traffic is no simple task
Rail Service - Tanzania
Rail Service - Tanzania ď&#x201A;§
Traffic has steadily decreased since 2003 (not including TAZARA)
Rail Service - Tanzania
Almost complete loss of rail traffic business – –
Extremely low axle loadings –
– –
–
9-12 operating locos for freight traffic
–
Limited to 14 tonnes/axle (6 axle loco limited to 84 tonnes)
Cash inflow is poor and not sustainable Track washouts between Kilosa and Gulwe stations
Deteriorated state of fixed infrastructure –
Not able to meet payroll or buy diesel
Service disruptions along the main line on the Mkondoa River –
Central line partially converted to 80lb/yd rail But much 56 and 60 lb/yd rail remains Thus limiting speeds
Rolling stock availability
–
2003 – 1.5 M tonnes/yr 2012 – 0.2 M tonnes/yr (estimated)
Temporary Speed Restrictions
Lengthy concession process (~5 years) –
Minimal maintenance done during this period
Rail Service - Tanzania
Considerable investment in fixed infrastructure and rolling stock is required Removable of speed restrictions will help increase quality of service Growing traffic will increase the revenue and improve cash flow Large volumes traveling by truck are severely damaging the road network Elimination of the fuel tax on the railway will help put it on a more level playing field with the road transportation network
Rail Service - Tanzania
Rail Service - Tanzania Is there enough traffic to justify the rail network? 25,000
20,000
15,000 TEU
ď&#x201A;§
Road
10,000
Rail 5,000
0 January
Februar y
March
April
May
June
July
August
Septem Novemb Decemb October ber er er
Road 16,433
13,456
15,117
14,437
15,804
15,210
16,808
17,753
17,409
16,640
23,129
18,902
19
4
0
120
151
32
106
126
208
144
94
Rail
28
Month
Imports @ TPA, 2011
Rail Service - Tanzania
Summary of Issues
Passenger Service Obligations (PSO) Deferred maintenance – –
Human resources – –
Aging workforces Young staff entering barely functioning railways
Competition with the road – – –
Extensive work required on the bridge and track infrastructure Signalling system is heavily vandalised
Inventory carrying cost Collection and delivery transhipment
Fuel taxes paying into road funds
What can be done?
Reduce network size –
Streamline operations – –
Review operations on branch lines and close noncommercially viable track
Cut unprofitable customers Focus on large, high volume customers that require consistent service
Increase traffic levels –
Additional traffic is required to increase the revenue • New customers • Increase modal share
–
Grow economies of scale
Adjust passenger service obligations Financial support will be required for the medium (freight) and long (passenger) term
Final Words
Thank you dlichti@cpcs.ca
Bertrand Millot, Vice President, Cordiant Capital Bertrand joined Cordiant in 2002. In his capacity as Chief Investment Officer, he has overseen the due diligence, approval and monitoring processes of over 150 loans covering a wide array of sectors from infrastructure to agribusiness. Bertrand has been active in project finance for 21 years. Prior to joining Cordiant, he spent eight years at EBRD in various roles, including as Infrastructure Group Portfolio Manager, where he was responsible for the monitoring, management, troubleshooting and workout of a portfolio of 170 loans and equity investments in the infrastructure sector totalling â&#x201A;Ź4.7 billion, and as Principal Banker and Senior Banker where he led the appraisal, structuring and execution of large infrastructure projects. Before joining EBRD, he worked for four years as Project Manager in the transport sector with the Project Finance Department of Banque Nationale de Paris.
4 Transport Investments in Africa
Bertrand Millot 19 March 2013
Cordiant – A few Stats
Loan Investments • 180 investments in global EM $2,200 M
• 40% in Global EM infrastructure • 20 investments in Africa $335M • 16 in African Infrastructure $260 M • 4 in African Transport $120 M
1
South Africa – SA Taxi
2
Senegal â&#x20AC;&#x201C; Dakar International Airport
Kenya/Uganda â&#x20AC;&#x201C; Rift Valley Railways
4
Ethiopian Airlines Boeing 787
5
Roger Gervais, President, General Director, SDV Logistics Canada Inc. Roger Gervais holds the position as CEO of SDV Logistics Canada Inc. since June 2009. He has over 30 years of experience in the freight forwarding, logistics, and customs brokerage industry. Mr. Gervais previously held the position as CEO of UPS-SCS Inc. and of Fritz Starber Inc. He has been an entrpreneur since the early 1980â&#x20AC;&#x2122;s who helped build the Starber company in partnership with his father and brother. He is also a licensed Custom Broker.
1ͤͬ RESEAU DE LOGISTIQUE INTEGREE EN AFRIQUE
Présentation Février 2013
Chiffres clés en 2012
2
55
pays dans le monde, dont 45 en Afrique, avec plus de 250 filiales 25
000 salariés permanents
250 2
M€ d’investissements par an
700 M€ de chiffre d’affaires*
*Prévision 2013
28
concessions portuaires, ferroviaires, fluviale et
plate-formes multimodales 3
650 000 conteneurs manutentionnés
6,5
millions de tonnes manutentionnées par an
Plus
de 6 000 véhicules
Plus
de 10 millions de m² de bureaux, terre-pleins,
magasins et ateliers
2
3
1er réseau de logistique intégrée en Afrique
Le plus grand réseau intégré de
logistique en Afrique
Présent depuis plus de 50 ans sur le continent africain
Une offre globale de services :
des opérations portuaires au transport terrestre de marchandises
Un réseau panafricain toujours plus étendu, un maillage de plus en plus dense
3
4
Premier opérateur privé de concessions en Afrique Bangui
14 concessions portuaires
11 concessions de plates-formes multimodales
1 concession fluviale à Bangui (représentation à Brazzaville)
2 concessions ferroviaires
(Camrail & Sitarail)
La Réunion
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Présence de Bolloré Africa Logistics Concessions portuaires de Bolloré Africa Logistics Concessions de plates-formes multimodales de Bolloré Africa Logistics Ports secs privés Concession fluviale de Bolloré Africa Logistics
Concessions ferroviaires de Bolloré Africa Logistics
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23 plates–formes multimodales en Afrique
Soudan du Sud
Tema Mali Luanda Kampala Lagos Dar es Salaam Gabon, Rwanda, Mombasa, Burkina Faso, Tchad, RDC, Cameroun et Malawi Total Teu’s: 330 000
Plates-formes multimodales
Décongestion des ports principaux (Tema, Lagos, Luanda, Dar es Salaam, Mombasa) Gestion et déploiement des hubs hinterland Terminaux sous douane Nouveaux terminaux
Plates-formes multimodales de Bolloré Africa Logistics
Plates-formes multimodales privées
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Projet Mining Marampa – Sierra Leone
Spécialiste de grands Projets industriels Document confidentiel à usage strictement interne
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Logistique de projets : Mining
Projet Mining Marampa - Sierra Leone
Projet Mining Marampa - Sierra Leone
Projet Mining Tenke- RDC
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Logistique de projets : sites Oil & Gas
Transports terrestres Marampa â&#x20AC;&#x201C; Sierra Leone
OpĂŠrateur terrestre
Opérateur de corridors
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Services
intégrés et sur mesure (dédouanement, transit, livraison, ferroutage, etc.) Connaissement
BL directs
Transport
routier door to door
Entrepôts
sous douane
Ensachage,
emballage
Fumigation Tierce
détention
Groupage/dégroupage Suivi
tracking
Traitement 10
de produits agricoles
1
500 tracteurs et camions
2
200 remorques
Transport ferroviaire
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2 concessions : Sitarail depuis 1995, Camrail depuis 1999 Investissements déjà réalisés : 360 M€ 3 965 collaborateurs (1 413 à Sitarail et 2 552 à Camrail)
Cameroun
Côte d’Ivoire – Burkina Faso
1000 km de voies
1 260 km de voies
1,2 million de tonnes par an - kilomètres
0,9 million de tonnes par an - kilomètres
530 millions de passagers - kilomètres
220 000 passagers - kilomètres
Signature du programme d’investissement de 350 M€ entre 2009 / 2020 avec l’État camerounais
200 M€ par Camrail 150 M€ par le gouvernement camerounais
Restructuration en cours de la convention de concession en accord avec la Banque mondiale, EIB, l’AFD pour Sitarail
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Transit aérien
Avec 54 agences aéroportuaires dans 45 pays, Bolloré Africa Logistics propose à ses clients un service global de services aériens
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Chantier naval & Transport fluvial Chantier naval Côte d’Ivoire – Carena Gabon – DPS - ACAE
Transport fluvial Rechercher la meilleure solution en transport et proposer des routes alternatives Apporter des services aux régions enclavées Ex : République centrafricaine - Socatraf
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Services d’entreposage et Supply Chain
Bolloré Africa Logistics : plus de 250 entrepôts Services d’entreposage à valeur ajoutée Technologies de l’ information
Présence de Bolloré Africa Logistics
Tour de contrôle Bolloré Africa Logistics Services d’entreposage Bolloré Africa Logistics
VA
Services d’entreposage à valeur ajoutée de Bolloré Africa Logistics
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Solutions logistiques complètes et sur mesure
Anne-Pascale Richardson, PhD, Vice President, PharmAfri-Can Inc. Graduate from INRS from the University of Quebec, Ms. Richardson develops innovative health ingredients from African botanicals giving added value to the products. She has designed and implemented sustainable development projects â&#x20AC;&#x153;Trade Not Aidâ&#x20AC;? oriented to yield social, environmental and economic development in Africa. She contributes to the development of the new economic sector of the value-added plants in Africa, in close collaboration with the BDA Foundation within the framework of a platform for commercialisation and sustainable development. She merges business model, scientific, social and environmental innovations to enhance CSR impact of corporate activities.
Afrique en Essor II Infrastructures pour le développement de l’Afrique 19-20 mars 2013 | Montréal, Qc, Canada
La
filière
des
b otan icals
Moteur de développement durable en Afrique
FONDATION BDA
PHARMAFRICAN
L’AGRICULTURE: LEVIER DE DÉVELOPPEMENT ÉCONOMIQUE Consensus général pour le développement de l’agriculture « traditionnelle » pour les marchés locaux et internationaux de l’agro-alimentaire. • Les cultures de fruits et légumes • Les cultures céréalières • Les filières agricoles spécialisées « traditionnelles » (cacao, huile de palme…) Selon la Banque Mondiale (mars 2013), l’Afrique a le potentiel pour créer un marché de l’alimentaire de 1 000 milliards de dollars d’ici 2030. L’opportunité et la vision de BDA-PharmAfrican: Le développement de la filière des plantes à valeur ajoutée (les botanicals) • Marchés Nutraceutiques • Marchés Cosmétiques • Marchés Pharmaceutiques FONDATION BDA
PHARMAFRICAN
LE MARCHÉ MONDIAL & LES OPPORTUNITÉS VENTE MONDIALE DES PRODUITS DE SANTÉ & BIEN ÊTRE
Croissance annuelle des ventes 5 ans (BCC Research 2010) : aliments fonctionnels 8,5 -10 % produits cosmétiques 15 %
627,5 milliards US$ en 2010 772 milliards US$ en 2016 (Euromonitor international, 2011)
Le marché des cosmétiques est à la recherche d’une diversification de gamme. (BCC research 2010)
MARCHÉ MONDIAL DES NUTRACEUTIQUES
243 milliards US$ en 2015 (Global Industry Analysts, 2010)
MARCHÉ MONDIAL DES BOTANICALS > 60 milliards US $ (CIC, Geneva)
Le segment des antioxydants représente environ 500 millions $ de recettes pour la composante d'ingrédients (Euromonitor 2011)
MARCHÉ MONDIAL DES MÉDICAMENTS BOTANIQUES
$32.9 billion en 2013 (BCC Research) L’AFRIQUE SUB-SAHARIENNE 25% des ressources naturelles mondiales, 0.01% DU MARCHÉ
MONDIAL.
FONDATION BDA
PHARMAFRICAN
Les botanicals | les espèces qui ont déjà un marché La citronnelle
Le Neem
Catharentus roseus
Le Curcuma FONDATION BDA
Artemisia annua
Etc.. PHARMAFRICAN
Les botanicals | les espèces qui ont un fort potentiel Hibiscus sabdariffa Pharmacopée des 50 plantes africaines les plus prometteuses
« Graines de paradis » Aframomum melegueta
Rauvolfia vomitoria
Moringa oleifera
Mondia whitei Cajanus cajan FONDATION BDA
Etc..
PHARMAFRICAN
DES BARRIÈRES RÉGLEMENTAIRES À FRANCHIR AFRIQUE
FONDATION BDA
PHARMAFRICAN
CONTEXTE RÉGLEMENTAIRE FAVORABLE Première semaine, Janvier 2004 BPAR DES PLANTES MEDICINALES
FONDATION BDA
MÉDICAMENTS BOTANIQUES
PRODUITS DE SANTÉ NATURELLE
PHARMAFRICAN
L’ENJEU DU SUCCÈS | LA QUALITÉ Une APPROCHE À TROIS VOLETS, basée sur L’ASSURANCE ET LE CONTRÔLE DE LA QUALITÉ pour transformer les plantes africaines en commerce profitable 1. l’assurance et le contrôle de la qualité de la culture et de la récolte (BPAR) 2. la R&D, développent des produits ( alicaments, cosmétiques, médicaments) -GLP 3. le contrôle de la qualité de la fabrication - GMP
Cette approche offre trois solutions a) améliore la situation économique des populations rurales tout en protégeant la nature - BDA b) permet le développement scientifique de produits - PharmAfrican c) offre d’énormes possibilités de fabrication et de vente à des industries - Partenaires
FONDATION BDA
PHARMAFRICAN
UNE PLATEFORME D’INNOVATION
FONDATION BDA
PHARMAFRICAN
DES PARTENAIRES DE DÉVELOPPEMENT DURABLE
MINAGRI
Programme Plante Action | TROIS AXES ASSURANCE ET CONTROLE DE LA QUALITÉ
• • • • • • •
GACP HACCP Pratiques de laboratoire Phytochimie Microbiologie Chimie des sols …
FONDATION BDA
ENTREPRENEURIAT + mentorat d’affaires
• Plan d’affaires • Comptabilité • Marketing (Push/Pull) • Logistique • Ressources humaines • Exportation • …
RECOLTE / PRODUCTION RESPONSABLE
• Mode opératoires standardisés • Production biologique • Botanique • Agronomie • Physiologie végétale • …
DES ENTREPRISES AGRICOLES AFRICAINES VISANT L’EXPORTATION
FONDATION BDA
LE TRIPLE IMPACT DE DÉVELOPPEMENT DURABLE Economique
Environmental
Création d’emplois stables (directs & indirects) Les Ecopreneurs génèrent des revenus Réinvestissements au profit de la communauté Accès à l’eau potable, l’électricité et Internet Introduction à un marché international Crédits Carbone
Agriculture responsable et durable Valorisation des PFNL Changements climatiques Reforestation & afforestation Réduction de la déforestation Conservation de biodiversité REDD +
Social Population active (hommes et femmes) Autonomisation des femmes Création de nouvelles infrastructures Plus grand taux d’éducation Population en meilleure santé Désenclavement des populations
FONDATION BDA
AU CŒUR DE LA FILIÈRE DES BOTANICALS: LE CENTRE DE CONDITIONNEMENT & LE LABORATOIRE DE CONTÔLE DE LA QUALITÉ SANS UN CENTRE DE CONDITIONNEMENT BÂTIT SELON LES DIRECTIVES QUI ASSURENT LA QUALITÉ DES TRAITEMENTS EFFECTUÉS ET DONC LA QUALITÉ DE LA MATIÈRE VÉGÉTALE TRANSFORMÉE, TOUT L’INTÉRÊT DE LA CULTURE ET DE LA RÉCOLTE SERAIT PERDUE.
Un centre de conditionnement des botanicals est une infrastructure essentielle pour : 1- assurer la qualité et la traçabilité de la matière végétale après sa récolte, afin de satisfaire aux standards de qualité internationale, 2- répondre aux besoins spécifiques des clients du marché international (mode d’extraction, mode de séchage, matière végétale entière, partielle ou broyée, etc…)
FONDATION BDA
Le premier centre a été construit dans la Réserve de la Biosphère de Luki (Bas-Congo, RDC) en partenariat l’ÉTS et le PRÉCI
Le projet VAMPEEM Réalisé à Luki (Bas-Congo) Dans la Réserve de la Biosphère Financé par le
FONDATION BDA
VAMPEEM – VALORIZATION OF AFRICAN MEDICINAL PLANT FOR MAINSTREAMING ENTREPRENEURSHIP AND ENVIRONMENTAL MANAGEMENT IN THE DRC
0-6 mois Travaux de construction et installation des équipements (conditionnement & contrôle qualité)
7-42 mois Programme Plante Action (2 cohortes d’Ecopreneurs) Formation des formateurs (18 ressources locales) Ateliers de sensibilisation et de concertation (Environnement et Sécurité alimentaire)
Transfert du projet à une COOPÉRATIVE
CBFF Congo Basin Forest Fund (BAfD) co-chair par t Hon. Paul Martin ancien premier Ministre du Canada et Wangari Maathai Prix Nobel de la Paix 2004
FONDATION BDA
Le Campus BDA à Luki
FONDATION BDA
Le Campus BDA Ă Luki | les travaux encours
FONDATION BDA
LA PÉPINIÈRE | LE BERCEAU DES PLANTES À VALEUR AJOUTÉE 128 Espèces végétales domestiquées en pépinière Cultures expérimentales en cours Arbres et plants semenciers
FONDATION BDA
UN JARDIN BOTANIQUE EXPÉRIMENTAL
FONDATION BDA
L’émergence d’un contexte favorable appuyé par les AUTORITÉS NATIONALES et les BAILLEURS DE FONDS Ministère de l’Agriculture Ministère de l’Environnement Ministère de l’Emploi
Ministère du Plan
FONDATION BDA
PHARMAFRICAN
DES PERSPECTIVES DE DÉPLOIEMENT HUB sectoriel
CENTRE DE CONDITIONNEMENT Et LABORATOIRE DE CONTÔLE DE LA QUALITÉ
ÉCOPRENEUR
Moteurs de développement économique
Au bout de la filière… des usines cGMP •Extractions cGMP à partir de botanicals et de produits agricoles (ex. graines, feuilles, tiges…) • Disponible pour des écoentreprises (ecopreneurs certifiés par BDA) • Nouveaux leaders de la filière Botanicals
FONDATION BDA
PHARMAFRICAN
TRADE NOT AID | l’Avenir de l’Afrique aux yeux du Monde
MERCI THANK YOU
Véronique Doyon, Vice President of Water Department and Rural Development, SNC-Lavalin
Currently Vice President of the “Water and Rural Development” Department at SNC-Lavalin, Mrs. Doyon has gained over 20 years of experience in the field of integrated agricultural development abroad. A graduate from the National School of Agronomy of Montpellier in France, with a diploma in agro-economy, and a specialization in tropical agronomy, Mrs. Doyon has participated in numerous projects throughout many regions of the world, particularly in Sub-Saharan Africa as a specialist in her domain, administrator, and project director. This vast experience has allowed her to acquire extensive and practical knowledge related to issues of sustainable development within the agriculture and food industries in rural areas, particularly in Africa.
SNC-Lavalin Environnement, Division de SNC-Lavalin Inc. Mme Véronique Doyon VP, Eau et Developpement Rural Panel 2: La zone rurale et l’agriculture: des secteurs clés pour l’optimisation de la croissance économique
2
Véronique Doyon Graduée en agroéconomie avec une spécialisation en agronomie tropicale + de 20 ans d’expérience dans le domaine du développement rural intégré à l’international Participation à de multiples projets dans différentes régions du monde et plus particulièrement en Afrique Sub-saharienne en tant que spécialiste, gestionnaire, puis directrice de projets. Acquisition de connaissances approfondies et pragmatiques des enjeux du secteur agricole et agroalimentaire dans les pays à économie moins avancée et en particulier en Afrique.
3
SNC-LAVALIN ENVIRONNEMENT L’une des équipes les plus complètes en génie de l’environnement et en services-conseils au Canada + de 40 ans d’expérience + 1200 spécialistes du monde entier Partenariats avec l’industrie, les gouvernements, les collectivités et les Institutions de financement internationales Une approche intégrée pour une responsabilité environnementale, égalité sociale et efficacité économique « Eau et développement rural » : une des 5 principales lignes d’affaires
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SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
Lutter contre la pauvreté, augmenter la productivité agricole et améliorer les conditions de vie des populations en milieu rural sont au cœur de nos préoccupations . Actif en Afrique depuis plus 20 ans, nous avons réalisé de nombreux mandats confiés par des clients privés et institutionnels. Présentement nous sommes actifs au Sénégal, Mali, Ghana, Éthiopie et en Angola
PORTFOLIO INCLUDES THOUSANDS OF ENVIRONMENTAL PROJECTS IN SECTORS AS DIVERSE AS: Power utilities Government Forestry Mining Petroleum, chemical & petrochemical Metal Processing Road, rail and air transportation
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SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL Études de préfaisabilité et de faisabilité de projets Conception technique et ingénierie détaillée de projets Analyse et planification agricole Programmes de développement des productions agricoles Appui au développement des marchés agricoles Conservation et gestion des sols et de l’eau Planification et supervision de la construction de systèmes d’irrigation et de drainage Accompagnement et formation aux organisations agricoles Planification et supervision de la construction de réseaux d’adduction d’eau potable Planification et gestion de projet
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Parmi les 8 Objectifs du Millénaire pour le développement Objectif 1 : Réduire l’extrême pauvreté et la faim Réduire de moitié, entre 1990 et 2015, la proportion de la population qui souffre de la faim. À travers ses projets, en irrigation, agriculture et développement rural, SNC-Lavalin contribue à atteindre cet objectif.
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L’agriculture en Afrique : les principaux enjeux La gestion de l’eau Le manque d’infrastructures rurales Les questions foncières Une majorité de petits producteurs Des infrastructures de commercialisation quasi-inexistantes La disponibilité des intrants agricoles Des technologies appropriées Les difficultés d’accès au crédit La faiblesse des investissements
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L’agriculture en Afrique : un immense potentiel La Banque Mondiale est affirmative sur le sujet : dans moins d’une génération, soit d’ici 2030, le marché africain de l’alimentaire triplera: de 313 milliards de dollars à 1 000 milliards. L’agriculture en Afrique subsaharienne est considérée aujourd’hui comme un moteur de développement Elle constitue l’activité principale de 60% de personnes vivant en milieu rural et la principale richesse pour de nombreux pays.
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L’agriculture en Afrique : comment mettre en valeur ce potentiel? Exploitation de nouvelles terres Développement de l’irrigation; Formation en agriculture commerciale des producteurs et des entreprises; Amélioration des activités post-récolte, de conservation et la transformation, selon une approche de chaîne de valeur; Renforcement des organisations professionnelles; Faciliter l’accès aux services de crédit visant les investissements agricoles; Intégrer les questions de genre et d’environnement.
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Savoir s’adapter aux petits producteurs Assistance pour la mise en place d’une ferme Conception des modules adaptés : Préparation des études techniques détaillées Montage financier en vue de subvention pour les investissements agricoles (équipements d'irrigation par exemple). Accord avec les banques agricoles pour sécuriser l'accès au crédit Assistance technique aux petits producteurs pour l’acquisition et l’installation des équipements et matériels
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Concevoir et mettre en place des programmes de production Quoi? et quand? produire : une approche rationnelle pour assurer la viabilité commerciale Sélectionner des cultures basées sur les opportunités locales et sur les caractéristiques agro-pédo-climatiques du terrain. Inclure la conservation et la transformation comme moyen d'assurer financement et créer plus de la valeur ajoutée.
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Gérer un système d’irrigation L’amélioration de l’opération et de gestion des systèmes d’irrigation gravitaires est une priorité. Pourquoi? Garantir l’accès à l’eau, des coûts de fonctionnement raisonnables, simplicité du système
L’irrigation de proximité représente un “saut” technologique pour les petits producteurs Pourquoi? L’accès aux fertilisants solubles et leurs coûts sont un problème, la relative complexité d’utilisation du système, les besoins d’entretien exigeants, le coût de remplacement des conduites.
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Assurer la formation Élaboration de guides pratiques: irrigation, entretien, guide spécifique - produits, utilisation sécuritaire des pesticides, etc. Support simplifié: de tenue de livres, cahier de l’exploitant agricole, affiches et posters Dissémination à travers les réseaux existants incluant les universités, organismes de vulgarisation, démonstration sur site, etc.
Le défi: faire en sorte que les petits producteurs adoptent les bonnes pratiques agricoles comme une stratégie gagnante.
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SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
PROJET SENEGAL Programme de Développement des Marchés Agricoles (PDMAS). Travail en partenariat avec la Banque Mondiale pour augmenter les exportations de produits horticoles et de produits agricoles non traditionnels de 13 000 tonnes à 50 000 tonnes et de doubler les revenus agricoles des producteurs appuyés.
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SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
PROJET SENEGAL Projet d'appui aux opérateurs/trices de l'agroalimentaire (PAOA) L’objectif est de contribuer au développement du secteur agroalimentaire sénégalais en appuyant les opérateurs et les opératrices au niveau de la transformation.
L’ACDI nous a confié le mandat de donner de la formation ainsi que des conseils à de petites entreprises et à des microentreprises de l’industrie agroalimentaire, pour la plupart exploitées par des femmes extrêmement pauvres. Grâce à notre approche participative, ces femmes ont pu bâtir des entreprises rentables en mettant au point des technologies et de l’équipement appropriés, et en améliorant leurs compétences sur les plans de la gestion, de la comptabilité, du traitement et de la commercialisation. Cela leur a permis de prendre en charge leurs entreprises et d’en garantir le maintien même après notre départ. De nombreuses femmes qui avaient peine à subsister sont maintenant à la tête d’entreprises prospères et durables.
16
SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
PROJET MALI Projet d’Irrigation d’Alatona
SNC-Lavalin a récemment terminé ce projet, qui a radicalement amélioré l’agriculture irriguées dans la région de l’Office du Niger ainsi que les conditions de vie de la population locale.
Etudes de conception détaillée du périmètre irrigué de plus 12 000 ha et des infrastructures sociales pour une population de 11 000 habitants, Supervision et la coordination des travaux d’infrastructures sociales et d’irrigation (5000 ha)
17
SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
PROJET GHANA Conception de périmètres irrigués et supervision des travaux d’aménagements hydro agricoles Le projet a pour but d’améliorer la compétitivité de cultures commerciales et vivrières à valeur élevée dans les marchés locaux et internationaux et d’accroître la production.
Etude de faisabilité Conception détaillée finale Supervision des travaux d’aménagements hydro-agricoles
18
SERVICES AGRICULTURE ET DÉVELOPPEMENT RURAL
PROJET ANGOLA Étude de faisabilité d’un complexe céréalier avec minoterie Le projet a pour but de produire de la farine pour couvrir les besoins des populations et réduire les importations.
Etude de faisabilité Plan de développement agricole Montage financier
19
NOUS VEILLONS incarne les valeurs et convictions clés de SNCLavalin. C’est la pierre angulaire de toutes les initiatives de la Société. La santé-sécurité, le personnel, les collectivités, l’environnement et la qualité: toutes ces valeurs sous-tendent les décisions que nous prenons chaque jour. Surtout, elles nous aident à mieux servir nos clients et influent donc sur la façon dont nos partenaires externes nous perçoivent. NOUS VEILLONS fait partie intégrante de notre travail au quotidien. C’est à la fois une responsabilité et une source de satisfaction et de fierté, qui fournit l’échelle de valeurs à l’ensemble de nos gestes.
NOUS VEILLONS à la santé et à la sécurité de notre personnel, de celles et ceux qui travaillent sous notre responsabilité, ainsi que des personnes qui disposent de nos projets.
NOUS VEILLONS sur notre personnel, à sa croissance personnelle, à son avancement professionnel et à son bien-être général.
NOUS VEILLONS aux collectivités au sein desquelles nous vivons et travaillons, ainsi qu’à leur développement durable, et nous sommes déterminés à assumer nos responsabilités de citoyen du monde.
NOUS VEILLONS à l’environnement et menons nos activités de façon responsable sur le plan environnemental.
NOUS VEILLONS à la qualité de notre travail.
Edouard Préfontaine, Director, Corporate
Development & Project Financing, SEMAFO Énergie Mr. Edouard Préfontaine is Director of Corporate Development and Project Financing of SMF Energy. Prior to joining SMF Energy in 2011, Mr. Préfontaine was President of STRATEM a management consulting firm which he founded in 1988 and that specialized in environment, energy and sustainable development. Mr. Préfontaine began his career in Ottawa with the Canadian International Development Agency and then later with the Ministry of Indian and Northern Affairs where he was involved in feasibility studies related to transport infrastructure projects related to mining, energy and oil development projects in Northern Canada. In 1980, he joined LAVALIN and became Vice-President of the economic studies Division where he was involved in several projects on the African continent. Mr. Préfontaine has a background in economy and holds an MBA from the University of Montreal Business School. Today, he brings 25 years of experience on project development in several African countries for SMF Energy which develop, finance and operate as an Independent Power Producer (IPP).
L’ÉNERGIE EN AFRIQUE SUBSAHARIENNE SURMONTER LES COUPURES D’ÉLECTRICITÉ. COMMENT OBTENIR DE L’ÉNERGIE?
QUELLES SONT LES DIFFÉRENTES ALTERNATIVES? PAR EDOUARD PRÉFONTAINE DIRECTEUR DÉVELOPPEMENT CORPORATIF ET FINANCEMENT DE PROJETS
MARS 2013
L’AFRIQUE SUBSAHARIENNE, QUELQUES CHIFFRES : 48 pays du sud du Maghreb à l’Afrique du Sud. Population de 875 Millions qui sera le double dans 25 ans. Croissance démographique de 2.5 % par an ver sus 1 ,2 % pour l’Asie; 3,5 % en zone urbaine. Croissance du PIB de 5 % à 9 % par an selon les pays. Croissance de la demande énergétique de plus de 10 % par an en moyenne ver sus croissance de capacité de production électrique moins de 3 %. Écar t annuel d’au moins 7 % crée un déficit énergétique impor tant: Besoin d’investissement en énergie évalué à 47 Milliards $ par an pour l’Afrique subsaharienne excluant l’Afrique du sud. 2
LES COUPURES D’ÉLECTRICITÉ EN AFRIQUE SUBSAHARIENNE 56 jours de coupures par année en moyenne pour l’ensemble de l’Afrique subsaharienne soit 15 % du temps à cause de: Sous-investissement majeur dans les réseaux de transport d’électricité; Pertes de 10 % à 30 % sur les réseaux de transport d’électricité; Arrêts et déficiences de centrales thermiques; perte d’au moins 25 % de la capacité installée; Production réduite de l’hydro à cause des sécheresses dans certaines zones; Demande largement supérieure à la capacité de production d’énergie; Importation d’électricité fluctuante et inférieure aux attentes soit environ de 60 % de moins dans certains pays.
3
COÛT DE L’ÉNERGIE EN AFRIQUE Coût de l’électricité 2 à 3 fois plus cher en Afrique et en hausse à cause de: Part du thermique de plus de 60 % de l’offre énergétique dont 80 % du coût est le fuel avec un baril de pétrole estimé à 212 $ par l’AIE pour 2035; Nécessité d’importer le fuel: faibles capacités de raffinage en Afrique avec 6 raffineries dont plusieurs peu efficientes.
Potentiel hydro, gaz ou charbon peu exploité Alternative d’importation d’électricité avec lignes d’interconnexion existantes ou en construction. Dif ficultés à diversifier les sources d’énergie: Coûts élevés des investissements en hydro, gaz ou charbon et résultats trop à long terme comme solution à la crise énergétique; les centrales thermiques au fuel sont plus rapides à implanter; Dépendance des disponibilités de financements des guichets publics; Lenteur à implanter des projets en IPP dans les énergies renouvelables comme le solaire et l’éolien. 4
POTENTIEL EN MILIEU URBAIN
Faible taux d’électrification soit 16 % des ménages avec connexions sur tout en zone urbaine. Objectif d’électrification à 60 %. Électrification des zones urbaines très variables d’un pays à l’autre soit entre 30 % et 70 %.
Croissance de la classe moyenne en zones urbaines incite à la densification de réseaux et augmentation impor tante de l’of fre énergétique en milieu urbain. Place pour projets proches des lieux de consommation d’énergie.
5
FAIBLE CAPACITÉ D’INVESTISSEMENT DES ÉTATS La faible capacité d’investissement des États et des compagnies d’électricité tient aux raisons suivantes: Situation déficitaire de plusieurs sociétés d’électricité : tarification plus basse que le coût de production ; Tarification non ajustée depuis des années à cause de l’impact social et politique; Hausse des subventions aux hydrocarbures pour combler l’écart entre le prix de vente et le coût de production et des besoins dans les secteurs tels que santé, éducation, transport et autres; Capacité d’endettement limitée par les engagements avec le FMI.
Les capacités financières limitées et la dépendance sur la disponibilité des guichets publics laissent place aux investissements privés comme moyen de combler le déficit énergétique.
6
BESOINS POUR LE DÉVELOPPEMENT DU SECTEUR ÉNERGIE Nombreux besoins tels que : Augmenter le taux d’électrification à plus de 60 % ; Construire des lignes d’interconnexion pour les échanges transfrontaliers pour réduire la dépendance au thermique; Développer de nouvelles filières telles que le gaz, la géothermie, le solaire, la biomasse; Mettre en place des cadres règlementaires et institutionnels pour le développement du secteur privé; Moderniser les installations de production d’énergie et les réseaux existants; Former le personnel pour améliorer les performances des utilités publiques . Faire les réformes de compagnies d’électricité.
7
FINANCEMENT PRIVÉ COMME ALTERNATIVE AU DÉVELOPPEMENT DES PROJETS D’ÉNERGIE Les financements des guichets publics ne sont pas suf fisants pour tous les besoins. Les financements privés sont une alternative pour : Des projets de production d’électricité où les utilités publiques ont développé peu d’expertises comme dans le solaire, l’éolien, la biomasse, la géothermie; Des projets d’investissement de grande envergure tels que hydro, gaz et charbon qui demande une mobilisation importante de ressources; Des projets qui ont une dimension commerciale avec la vente d’électricité avec connexion au réseau des utilités publiques.
Les financements publics sont requis pour le développement énergétique pour des projets non commerciaux tels que : L’extension des réseaux de transport d’électricité et d’électrification rurale qui sont des opérations qui se rentabilisent difficilement; Les études préalables requises et cadres institutionnel et règlementaire dans le cadre de programme d’appel d’offres d’IPP; La formation et le renforcement des capacités . 8
APPROCHES DE FINANCEMENT DE PROJETS PRIVÉS Les projets de financement privé peuvent être développés selon le mode BOOT ou BOO selon les cas ou le mode IPP: BOOT /BOO : promoteur qui exécute toutes les étapes d’un projet le développement, financement, conception, construction et opération pour le bénéficiaire et cède le projet à la fin de la concession (« transfer »); IPP : Entreprise ou consortium qui réalise le développement, le financement, la construction et l’opération de centrale électrique et vend l’électricité en tant qu'entreprise privé.
La mise en place des projets privés suit dif férentes approches selon les cas soit : Par des offres spontanées de promoteurs; Par le Gouvernement qui sollicite des investisseurs privés au développement d’un projet pour pallier à une crise énergétique; Par un processus d’appel d’offres d’IPP, de BOO ou BOOT. 9
APPROCHES DE FINANCEMENT DE PROJETS PRIVÉS Ces approches ont des conséquences dif férentes au niveau des coûts et risques pour les promoteurs. Les projets d’offres spontanées ou de sollicitation par les Gouvernements impliquent que le promoteur finance tout le développement du projet . Ceci nécessite une entente préalable ou des contrats d’échanges pour des ressources tels que pratiqué par la Chine. Le processus d’appel d’offres d’IPP implique que le Gouvernement investisse dans toutes les études préalables et mises en place du cadre institutionnel. Ce processus est coûteux pour les États. Il s’applique que dans les cas de taille de marché important pour plusieurs projets IPP comme en Afrique du Sud.
10
AVANTAGES DES FINANCEMENTS PRIVÉS Avantages des projets privés pour les Gouvernements: Permet de combler le déficit énergétique à défaut de capacité d’investissement et temps requis des guichets publics pour l’implantation des projets; Complément aux ressources internes non suffisantes ; Rapidité de mise en place des projets en IPP lorsqu’il y a une volonté politique; Pas d’endettement de l’État du fait que le financement est assumé entièrement par l’ IPP; Faible engagement de l’État sinon une lettre de confort ou garantie. Conforte les investisseurs pour autres projets privés et développement de filière énergétique.
11
CONDITIONS DE FINANCEMENT DE PROJETS PRIVÉS Conditions pour les promoteurs: Ressources financières des promoteurs pour réaliser à risque les études de faisabilité, le développement de projets, la vérification diligente et autres qui se chiffrent entre 2 et 8 millions $ selon la nature des projets.
Conditions pour les Gouvernements: Concession au producteur privé pour vente sur le réseau; Connaissance des principes des projets en IPP et volonté de développer des projets privés ; Compréhension des paramètres financiers du prix de cession ; Loi des marchés publics permettant le développement des projets privés; Code d’investissement et cadre fiscal facilitant la mise en œuvre des projets IPP; Implication du Gouvernement à tous les échelons ; Environnement politique et économique acceptable. 12
CONDITIONS DE FINANCEMENT DE PROJETS PRIVÉS Conditions de financement: Prêt des Banques commerciales ou de développement sur des périodes de longue durée soit de 15 à 20 ans selon la nature des projets (parfois plus dans le cas de l’hydro); Optimisation des taux d’intérêt pour obtenir un tarif d’énergie acceptable; Acceptabilité des ratios de recouvrement de la dette par les Banques; Confort sur les revenus et dépenses pour toute la durée du projet lors du « closing » financier.
13
CONTRAINTES ET CONDITIONS DU MONTAGE DE PROJETS PRIVÉS Résistance des compagnies d’électricité qui sont acheteur d’électricité et non leader prend une décision politique des hautes instances; Cadre institutionnel non adéquat doit être mis en place dès le début du processus; Faible densification de la population et réseau de transport non adéquat pour absorber l’addition de nouvelle puissance identifier projets proches des lieux de grande consommation d’électricité.
Bonne évaluation de l’offre et la demande énergétique sur le long terme investissement du pays dans les études; Assurance de paiement des compagnies d’électricité mise en place de garanties. 14
PERSPECTIVES POUR COMBLER LE DÉFICIT ÉNERGÉTIQUE ET COUPURES D’ÉLECTRICITÉ Il existe des avenues de solutions pour améliorer la situation de l’énergie en Afrique subsaharienne dont : Mobilisation de ressources financières de guichets publics des Banques de développement pour entre autres :
la réfection des lignes à haute tension; la construction de lignes d’interconnexions sur de longues distances; projets d’électrification rurale avec des Agences de développement rural; renforcement des capacités et réformes des utilités publiques .
Augmentation des capacités de production thermique au gaz et au fuel par des guichets publics et privés. Environ 20 projets en IPP/BOOT de 40 MW et plus ont été mis en place depuis les derniers 15 ans dans les pays suivants : Kenya, Tanzanie, Ouganda, Côte d’Ivoire, Ghana, Nigeria, Sénégal, Togo (9 HFO, 7 Gaz, 2 Hydro, 1 Géothermie).
15
PERSPECTIVES POUR COMBLER LE DÉFICIT ÉNERGÉTIQUE ET COUPURES D’ÉLECTRICITÉ Présence de plus en plus forte d’entreprises chinoises dans les grands projets tels que hydro, charbon avec des financements à faible taux d’intérêt; Plus grande sensibilisation des Gouvernements pour la réalisation de projets privés et modifications des lois pour permettre la vente par des producteurs privés aux utilités publiques; Intérêt croissant des Gouvernements pour les énergies renouvelables par des producteurs privés ; Développement de l’expertise des guichets privés des Banques de développement pour l’évaluation du risque technologique des énergies nouvelles .
16
Arif Mohiuddin, Partner, Vice-President West Africa, CPCS Arif Mohiuddin is a Partner and Vice President with CPCS responsible for its West Africa Operations. He specializes in commercialization, privatization and restructuring exercises. He has directed and managed numerous PPP/privatisation transactions and developed comprehensive financial models and technical papers for different infrastructure subsectors, including Power, Ports, Inland Waterways, Roads & Bridges, Mass Transit systems, and Water Supply. To date, Mr. Mohiuddin has managed/directed successful privatization/ PPP projects that led to over $6 billion worth of proceeds to the governments of several West Africa countries. Presently, Mr. Mohiuddin directing/managing a number of projects in West Africa, including the high profile Nigerian Power Sector Privatization Program and corporate restructuring and privatization of NIPP assets etc.
Africa Rising 2nd Edition Infrastructure for Development of Africa
Power Sector Reform and Privatisation in Nigeria Arif Mohiuddin Vice-President (West Africa) March 19, 2013
Outline • • • • • •
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
2
Introduction • Canadian firm specializing in infrastructure advisory services • Began operations in 1969 • Experience in more than 80 countries worldwide and 31 countries in Africa • Sector experience include Transport, Energy, Urban Development, Urban Transit
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
3
Background Key Reasons for Reform • Why – Low level of electricity supply – High level of ATC&C Losses – Unreliable power supply
• How – Appropriate legal and regulatory framework – Sustainable commercial framework – Rehabilitation of existing assets and investments in new assets
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
4
Background Determination of FGN Legal and Regulatory
• Electricity Reform Policy 2002 • Electric Power Sector Reform Act 2005
Backbone
Major Progress
Outline
Introduction Background
• Nigeria Electricity Regulatory Commission • Creation of Generation, Transmission and Distribution Successor Companies • Creation of NDPHC to invest in 10 Generation Plants and related gas, transmission and distribution assets
Role of CPCS Preparing for Privatisation Summary of Transactions
Risk Mitigation
• Establishment of Nigeria Bulk Electricity Trading Company • Management Contractor for Transmission Company
Investment Opportunities – NDPHC Transactions
5
Role of CPCS • FGN through BPE engaged CPCS as the Transaction Adviser in January 2011 – To carry out legal, technical and financial due diligence for all PHCN SCs – To support in the development of the industry structure – To prepare the privatisation plan – To prepare the bid documents – To manage the bid process – To support negotiation with successful bidders and reach financial close
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
6
Role of CPCS • In early 2012, BPE engaged CPCS to – To coordinate and support all industry players to finalise the key industry agreements – To draft selected industry agreements – To draft other related legal instruments
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
7
Towards Our Official Mandate
Preparing for Privatisation May 2011
Completion of Legal, Technical and Financial Due Diligence Outline
June 2011
Completion of Privatisation Plan
Introduction Background Role of CPCS
Aug 2011
Completion of Business Valuation, Draft Bid Docs (Incl. Transaction Agreements)
Mar 2012
Completion of Draft Industry Agreements
May 2012
Completion of Final Draft Bid Docs and Industry Agreements
Preparing for Privatisation Summary of Transactions Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
8
Preparing for Privatisation Critical Components Strong Political Commitment
Adherence to Deadlines
Outline
Introduction Background
Continuous Engagement of Investors
Dedicated and Experience field based Advisory
Effective cooperation between client and adviser
Role of CPCS
Continuous Engagement of Stakeholders
Preparing for Privatisation ` Summary of Transactions Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
9
Preparing for Privatisation Major Challenges and Mitigation Outline
Introduction
Industry Liquidity
Non-cost reflective tariff
NERC issued revised tariff effective 1st June 2012
Gas Supply
Background
Inappropriate risk allocation
Role of CPCS
Lack of Contractual Framework
Preparing for Privatisation
Risk allocation significant adjusted Gas Supply Agreements are finalised
Summary of Transactions Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
10
Preparing for Privatisation Major Challenges and Mitigation Outline
Introduction
Transmission
Off Taker Risk
Background
Risk Distribution Companies lacked creditworthiness
Lack of Efficient Management
Lack of Investment
Role of CPCS Preparing for Privatisation Summary of Transactions
Formation of NBET
Engagement of MC
PRGs issued by WB as backstop
Tariff to include TCN investment requirement
Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
11
Summary of Transactions The Process • All 17 PHCN SCs were tendered at the same time • Competitive process • Strong emphasis on technical experience and financial capacity • Encouraged developing country experience
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
12
Summary of Transactions The Process - Outcome Outline
EOI
Post EOIs
Proposals
Preferred
• Hydro - 40 • Thermal – 87 • Distribution - 80
• Hydro – 24 • Thermal - 56 • Distribution - 72
• Hydro - 2 • Thermal -23 • Distribution - 54
• Hydro - 2 • Thermal -3 • Distribution - 10
• All but 1 Genco and 1 Disco received qualified bidders • Transaction agreements executed with all preferred bidders • US$ 2.25 billion proceeds from the 15 transactions • Remaining Genco and Disco are being retendered
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
13
Summary of Transactions Privatisation Approach Thermal Generation • 100% share sale for 3 Genco • 51% share sale for 1 Genco Hydro Generation • 30-Year concession for both Preferred Bidder: Technically-qualified bidder with the highest financial offer Distribution • 60% share sale Preferred bidder: Technically-qualified bidder with the highest ATC&C loss target
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
14
Summary of Transactions Aligning objectives with Approach • Encourage quick development of an efficient sector Distribution Companies: Commit to targets on loss reduction
Generation Companies: Commit to targets on “minimum capacity”
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions
FGN Ongoing Monitoring of improvement targets
Failure to meet target? Penalty.
Investment Opportunities – NDPHC Transactions
Summary of Transactions Timetable to Date Outline
Introduction
July 2012: Bids Received Feb. 2011: EOIs Received
September 2012: Technically Qualified bidders declared
November 2012: Preferred bidders declared
February 2013: All agreements executed
Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
16
Summary of Transactions Outstanding Items • Privatisation of remaining two Successor Companies • 25% initial payment (deadline: 21st March 2013) • Ensuring adherence to pre-completion items • Financial close of all transactions • Handover to private operators by August 2013
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
Summary of Transactions Lessons Learned • Delaying commencement of the transaction process does not help • Political Commitment at the Highest Level is crucial • Number of Shortlisted Bidders at the EOI stage should be kept at minimum • Keeping all major stakeholders involved in the process is critical • Involving financiers from the beginning greatly enhances bankability
Outline
Introduction Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities – NDPHC Transactions
18
Investment Opportunities - NDPHC Transactions The Process to Commence Shortly Company
Location
Gas Turbines
Steam Turbines
Capacity
Outline
Introduction Olorunsogo
Ogun State
4
2
754.00
Ogorode
Delta State
4
0
507.60
Omotosho
Ondo State
4
0
512.82
Benin
Edo State
4
0
507.60
Geregu
Kogi State
3
0
506.10
Gbarain
Bayelsa State
2
0
253.80
Calabar
Cross River State
5
0
634.50
Egbema
Imo State
3
0
380.70
Omoku
Rivers State
2
0
264.71
Alaoji
Abia State
4
0
531.30
35
2
4,853.13
Total
Background Role of CPCS Preparing for Privatisation Summary of Transactions Investment Opportunities â&#x20AC;&#x201C; NDPHC Transactions
19
Questions? www.cpcs.ca
20
Martin Beaudry, Director of water supply and sanitation, SNC-Lavalin Specialist of water, projects management, business development and contracts and partnerships negociations, Martin Beaudry has over 15 years of multi-project and executive management experience in the water sector and a solid experience with administration of companies and organisational development. He is also skilled in project evaluation and processes improvement. His background gave him expertise in technical and engineering environment. As actual Water department Director in SNC-Lavalin since 2005, Mr. Beaudry is responsible for Business development and project management in the Water sector (services and engineering) in Canadian and international market. He is also Board Administrator and Official representative for Foreing Investor (SNC-Lavalin Inc. and Acciona Agua) for the project of desalination if seawater Fouka, Algeria (Myah Tipaza). Before his hiring in SNC-Lavalin, Mr. Beaudry was Vice-President and associate at GCE, now AMEC. He was also sales representative AMC at John Meunier Inc, now known as VEOLIA. First, Mr. Beaudry studied to be Water technologist. After, he completed 2 certificates in environement and water treatment and got an EMBA at the University of Quebec in Montreal. Recently, he obtained a specialization in Water Finance at the University of Toronto.
Water & Wastewater Canadian Partner of Choice Canadian Council on Africa, March 2013, Martin Beaudry
2
About the presentor More than 15 years experience in water/wastewater projects
Project management, Business development, design and O&M experience in water sector. College and University degrees in water and environement sector. EMBA from ESG, QuĂŠbec University, MontrĂŠal, Canada SNC-Lavalin since 2005 and presently director of water Supply and Sanitation for Environment Division Experience in Africa: Involved in many proposal/projects in Africa and until recently active board director at Myah Tipaza, desalination plant concession in Algeria.
3
About SNC-Lavalin HIGHLY SKILLED AND FLEXIBLE LABOUR FORCE Over 34,000 employees Speaking some 60 languages Representing approximately 80 nationalities
LOCAL EXECUTION, GLOBAL KNOW-HOW 100 years of evolution, experience, excellence Ongoing projects in some 100 countries International network established for almost 50 years Offices across Canada and in another 40 countries
4
SNC-Lavalin A Partner of Choice SNC-Lavalin is an international leader offering the full range of services: engineering and construction, operations and maintenance, and infrastructure concession investments. Diversified expertise and capacity to deliver technically complex ÂŤ turnkey Âť projects Committed to quality, safety, and protection of the environment Long-term relationships with clients Local partnerships where we operate
5
Sectors of activity Agrifood
Power
Environment
Industry
Infrastructure & Buildings
Investment
Mining and Metallurgy
Operations & Maintenance
Chemicals & Petroleum
Pharmaceutical & Biotechnology
Telecommunications
6
Worldwide Presence
7
Presence in Africa
8
Integrated Approach to Project Development SNC-Lavalin consistently and effectively integrates the four critical components of a project Tech/Design
EPC
Operation & Maintenance
Finance
9
State-of-the-Art, Proprietary Project Management System
10
Water
‘’L’eau est la ressource naturelle à la base de la vie et doit être prise en considération comme étant la base du développement de l’Afrique.’’
11
SNC-Lavalin and Water As a member of the World Water Council (WWC), SNC-Lavalin is committed to helping meet worldwide demand for safe and reliable drinking water. SNC-Lavalin’s expertise extends from “master planning” drainage systems and water supply facilities, through to building potable water distribution facilities; and to constructing wastewater collection and treatment systems, through to building, operating and maintaining water treatment facilities.
12
Fields of Expertise Water Conveyance and Distribution;
Potable Water Treatment; Wastewater Collection and Treatment; Industrial Water Management;
Water Management and Treatment at Mining Sites; Groundwater Supply; Water Storage and retention Structures;
Irrigation and Drainage; Hydrology and Water Management
13
Potable Water Treatment SNC-Lavalin has worked on some of the largest potable water treatment plants in the world, and is internationally known for the quality of its systems. Through the use of both basic and sophisticated technology, it has provided treatment facilities to meet the demands of a variety of rural and urban populations. SNC-Lavalin can conduct demand analyses and design studies to develop the most suitable pumping stations, pressure mains, treatment plants and water reservoirs for its clients.
Taksebt, Algeria
Taksebt Water Treatment Plant and Transfer Construction and O&M – Total Capacity : 600,000 m3/day
14
Wastewater Collection and Treatment SNC-Lavalin has executed wastewater collection and treatment projects, through a variety of client-tailored technologies, for 50 years. In addition to treatment plants and pumping stations, it can provide innovative solutions for the disposal or re-use of treated water, efficient odour control systems and biosolids management, including treatment and disposal.
The Greenway Pollution Control, Centre, London, Ontario Wastewater collection, treatment and disposal wastewater treatment
15
Water Conveyance and Distribution SNC-Lavalin delivers solutions for water conveyance and distribution challenges for all types and sizes. It has successfully completed hundreds of urban distribution projects, and its success in fast-tracking large-pipe conveyance systems is second-to-none.
Taksebt Water Treatment Plant and Transfer Construction and O&M – Algeria Total Capacity : 600,000 m3/day
SNC-Lavalin’s considerable expertise in this sector also includes water supply studies and high-tech intake works.
SAA Project – AEP Transfer System, Algeria Total Capacity: 150,000 m3/day
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A Turnkey Partner of Choice for the Water Sector From Start to Finish, SNC-Lavalin is capable of providing all project services in one integrated team: Project initiation; Design and Engineering; Construction; Project Management; Financing and Procurement; Toronto, Canada
Operation and Maintenance.
Arial view of the Humber Treatment Plant
17
Turnkey Solutions Engineering and Procurement SNC-Lavalin engineers and specialists work with clients on water projects from the earliest stages of development to ensure that objectives are identified and met. SNC-Lavalinâ&#x20AC;&#x2122;s quality needs assessment and pre-feasibility studies help projects start off on the right foot. SNC-Lavalin applies functional analysis and value engineering in the design of installations and infrastructure to complete a vast array of mandates in the Water Sector.
SNC-Lavalinâ&#x20AC;&#x2122;s global procurement activities are linked through a comprehensive network, connecting over 900 procurement staff, alliance partners and suppliers worldwide. SNC-Lavalinâ&#x20AC;&#x2122;s procurement network has helped water clients achieve significant cost savings, improved sourcing and efficient supply chain management.
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Turnkey Solutions Project Management and Construction SNC-Lavalin provides quality management services for every stage of a project, whether turnkey or stand-alone mandates. A fully integrated project management system has been developed to monitor and control projects of every type, size and complexity. SNC-Lavalin has a global reputation for delivering engineering procurement and construction management (EPCM) service contracts in a timely, efficient, and cost-effective manner. SNC-Lavalin combines project management skills with a total solution approach to deliver a complete range of construction and site services for Water Sector projects of all sizes, including pre-operational verification and commissioning.
GLOBAL ACHIEVEMENTS WATER TREATMENT
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Fouka Reverse Osmosis Desalination Plant, Algeria Engineering, Procurement and Construction 25-Year Operations and Maintenance services 120,000m3/day water treatment facility Sea water intake and pumping station Water pretreatment using granular media Reverse osmosis desalination with energy recovery Auxiliary systems: networks, controls, chemical dosage systems, membrane cleaning systems and equipment Treated water reservoir and water distribution pumping station
21
Fouka Reverse Osmosis Desalination Plant, Algeria
Concrete blocks installed on pipe
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Taksebt Water Treatment and Transfer, Algeria Engineering, Procurement and Construction 5-Year Operation & Maintenance Services 605,000 m続/day drinking water treatment plant 7.1 m続/s pumping station 110 km of pipe (DN2000/DN1800 mm) 4 tunnel sections, 11.7km in length, 2.5m diameter Six (6) reservoirs SCADA & Fiber Optic Monitoring System
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Koudiat Acerdoune Water Treatment Plant, Algeria Engineering, Procurement and Construction 360,000 m3/day Treatment Plant Four pumping stations 75 km of pipe (DN500 to DN1800 mm) Treated water storage tanks
Hydrogeological Assessment of the Northern Regions of Ghana Accra, Northern Regions, Ghana Working with the Ghana Water Resources Commission, the Project has implemented key institutional capacity building initiatives to assist the WRC to strengthen its mandate to manage groundwater resources more effectively.
Client Water Resources Commission Total project cost CA $5,520,000 SNC-Lavalin CA $4,410,000
Type of contract Cost plus with limit Services provided Key services include an increase in groundwater monitoring capability, development of a consolidated hydrogeological database, and overall strengthening of interaction and communication synergies within the water sector. ENVI-0753
Assainissement des quatre capitales régionales (ASCAR) Kankan, Kindia, Labé et N'Zéré, Guinée (Conakry) État des faits et planifier les interventions pour l’assainissement dont les sous-secteur de l’assainissement des eaux usées et pluviales et de la collecte, le traitement et l’élimination des déchets solides sur 15 ans.
Client Ministère de l'urbanisme et de l'habitat DATUDVUARD Durée du projet 24 mois Services rendus Enquête socio-économique, collecte et analyse de données, choix de solutions, schémas directeurs, évaluation de coûts, préparation de séminaires, études d’avant projet détaillé, dossiers d’appel d’offres.
ENVI-0520
26
Thank you
WE CARE embodies SNC-Lavalinâ&#x20AC;&#x2122;s key corporate values and beliefs. It is the cornerstone of everything we do as a company. Health and safety, employees, the environment, communities and quality: these values all influence the decisions we make every day. And importantly, they guide us in how we serve our clients and therefore affect how we are perceived by our external partners. WE CARE is integral to the way we perform on a daily basis. It is both a responsibility and a source of satisfaction and pride by providing such important standards to all we do.
WE CARE about the health and safety of our employees, of those who work under our care, and of the people our projects serve.
WE CARE about our employees, their personal growth, career development and general wellbeing.
WE CARE about the communities where we live and work and their sustainable development, and we commit to fulfilling our responsibilities as a global citizen.
WE CARE about the environment and about conducting our business in an environmentally responsible manner.
WE CARE about the quality of our work.
David G. Creighton, President, Cordiant Capital David has accumulated over 30 years experience in international capital markets in a career that has taken him from New York to London and throughout Asia. Returning to his native Montreal in 1999, David co-founded Cordiant, a unique fund manager specialising in emerging market, private sector investments. As Chairman of the Management Committee and member of the Investment Committee, David has been directly involved in the analysis and approval of nearly 200 investments in more than 55 emerging countries. Davidâ&#x20AC;&#x2122;s directorships include Cordiant and AC Water Canada. He is Chairman of the Investment Committee for the BCS Foundation and past Chairman of the Canada/South Africa Chamber. He has been registered with the Securities Institute in the United Kingdom and the Securities and Exchange Commission in the United States, and he is a fellow of the Royal Geographic Society. He has been a contributor to and fundraiser for a number of local and international causes and he has travelled extensively around the world.
Cordiant Infrastructure Investments in Africa Project
Sector
Country
Sidi Krir
Electricity
Egypt
Celtel – Congo
Mobile Telecom
Congo
Celtel – Madagascar
Mobile Telecom
Madagascar
Celtel – Malawi
Mobile Telecom
Malawi
Celtel – Sierra Leone
Mobile Telecom
Sierra Leone
Celtel – Uganda
Mobile Telecom
Uganda
Zain Ghana
Mobile Telecom
Ghana
Helios Towers
Tech. Hardware & Equipment
Nigeria
TOPL
Electricity
Ghana
SA Taxi
Industrial Leasing
South Africa
Sendou
Electricity
Senegal
AIBD – Dakar Airport
Transport Infrastructure
Senegal
Addax
Alternative Energy
Sierra Leone
RVR
Transport Infrastructure
Kenya
Ethiopian Airlines
Industrial Leasing
Ethiopia
Takoradi
Electricity
Ghana
5
Peter Kieran, President, CPCS Peter Kieran is the President of CPCS, a specialty firm providing strategic advisory services in transportation, energy and urban development. Since 1990, Peter has been working with international financial institutions, as well numerous governments, to develop new approaches to the reform and privatization of transportation systems and other critical infrastructure. He has played a key role in developing the policies and practices used to concession railways and ports in Africa and until recently was the Chairman of the Canadian Council on Africa. He has provided policy direction to national governments in over 25 countries on infrastructure. Peter has been responsible for leading large multimulti-disciplinary teams responsible for the successful privatization of state-owned railways and ports in Nigeria, Sierra Leone, Liberia, Mali, Senegal, Congo Brazzaville, Cameroon, Malawi, Zambia, Tanzania, Madagascar, Jordan and Armenia.His current major initiative is the privatization of the entire publicly owned power sector in Nigeria.
2
3
4
5
6
7
8
Benoit La Salle, FCPA, FCA, MBA, Founder and
Executive Vice President of the Board of SEMAFO, Chairman of SEMAFO Foundation President and CEO of SEMAFO Energy. Mr. La Salle is a Fellow Chartered Accountant (FCPA, FCA), a member of the Canadian Institute of Chartered Accountants and holds a Commerce Degree and a Masters of Business Administration. In 1980, Mr. La Salle founded Grou, La Salle & Associates, Chartered Accountants. In 1995, Mr. La Salle founded SEMAFO Inc. and held the position of President and Chief Executive Officer of the organization until August 2012. He now acts as Executive Vice-Chair of the Board of Directors of SEMAFO, Chairman of Foundation SEMAFO and President and Chief Executive Officer of SMF Energy. In the last quarter of 2012, Mr. La Salle has been appointed Chairman of Canadian Council of Africa (CCAfrica), Sama Resources and Kanosac. Mr. La Salle is the former Chairman of the Board of Plan International (Canada), one of Canadaâ&#x20AC;&#x2122;s leading NGOs.of
FINANCEMENT DES PROJETS PRIVÉS EN PPP
BENOIT LA SALLE
MARS 2013
STRUCTURE D’UN PROJET IPP EN ÉNERGIE Protocole Promoteur/État
– – – – –
FINANCEMENT DU PROJET Fonds propres promoteur Prêt guichets privés Banque de Développement Financement spécifique au changement climatique Crédits carbone Garantie MIGA
- Étude de préfaisabilité - Term sheet contrats avec l’État
- Étude de faisabilité - Impact social et environnemental
Création Société de projet
Contrat EPC-OM Achat d’électricité par utilité publique Réseau utilité publique 2
Clients
-
ÉTAT Cadre juridique Contrat concession Permis, licences Garanties du PPA Terrain
ÉTAPES D’IMPLANTATION DES PPP Identification du projet et études préalables
• Études de préfaisabilité • Prise de décision d’avancement • Signature d’un protocole d’accord ou procédure d’appel d’offre
Étude de faisabilité et conditions
• Étude faisabilité • « term sheet » des contrats (PPA, Contrat d’implantation, etc.)
Appel D’offre
3
• Élaboration dossier d’appel d’offres et critère de sélection • Évaluation des offres et sélection du soumissionnaire • Négociations de contrat
Financement
• Étude d’ingénierie détaillée • Signature du PPA et autres • Vérification diligente et bouclage du financement
Exécution du Projet
• Conception finale • Construction et mise en service • Opération
PRINCIPES DE FINANCEMENT PRIVÉ AVEC VENTE AUX UTILITÉS PUBLIQUES >
Le financement des projets en IPP ayant pour acheteur les utilités publiques s’effectue généralement avec les conditions de financement suivantes: – – – – – – –
–
4
Prêt sur de longues maturités soit de 15 à 20 ans; Taux d’intérêt au coût optimal des Banques de développement entre 6.5 % et 8.5 % généralement selon l’évaluation des risques; Ratio dette/équité de 80/20 à 60/40; Fonds propres avec ROI de projet selon les standards d’IPP en Afrique soit entre 18 % et 22 %; Garanties pour les investisseurs par les agences de garanties d’investissement tel que MIGA; Dans certains cas, et lorsqu’applicable, prêt concessionnel sans recours affecté à l’IPP ou rétrocédé par l’État à l’IPP pour rendre le prix de cession plus acceptable; Prix de cession établi sur la durée du projet soit sous forme fixe ou avec clause d’ajustement selon la nature du projet; Les longues périodes de maturité et taux d’intérêt orientent les projets surtout vers les guichets privés des Banques de développement et moins vers les Banques commerciales.
L’ENVIRONNEMENT DES AFFAIRES Low risk
High risk
Resource curse Average
1
40
South Africa Rwanda
4
Ghana
High
60 Botswana
80 Namibia
Kenya
120
Uganda
Swaziland Lesotho
140
Ethiopia
Nigeria
Tanzania
Madagascar
Average
Sierra Leone
160
Senegal Benin
180 2
Mozambique Liberia Burkina Faso Mali Malawi Burundi Cameroon Côte d'Ivoire Zimbabwe
Togo
Gambia
Niger
Guinea-Bissau
Central African Republic
Guinea
Angola DR Congo Chad
Incentive to private activity
Zambia
100
Gabon Congo
Low
(Source: World Bank, 2012 figures)
Ease of Doing Business (world ranking)
20
3
200 1%
5
Bubble: size of GDP
10 %
Weight of natural resources in the GDP (Log) (Source: World Bank Data, 2010)
100 %
MERCI
6
Timothy Turner, Private Sector Director, African Development Bank Mr. Tim Turner a Canadian national is the director of the private sector and microfinance department at the African Development Bank (AfDB). Tim joined the AfDB in 1996 as the inaugural head of risk management. Previously, he worked for Smith Barney, an American Investment Banking firm, in both London and New York. He holds an engineering degree from the University of Toronto and an MBA from IMD in Switzerland.
Financing Projects in Africa How can the AfDB help investors? March 2013
The AfDB can help partners with its unique “value-added proposition” AfDB’s Unique Value-Added Proposition • Project selection track record – low loss rate (<2%) • Local knowledge – experience on the ground • Dialogue with governments – mitigate political risks
• Packaging resources – market, concessional, g’tees, LCY • Reliable – take long-term perspective to market cycles • Scale to handle most transactions – $0.5 to US$500 million
• Competitive cost – risk-based market pricing, long tenors • Intrusive – examine all aspects of the projects • Demanding – insist on a fair deal 2
AFP: A Collaborative Platform for DFI Financing in Africa 8 DFI PROMOTING PARTNERS
3
Cabeolica in Cape Verde was the Bank’s first private wind project Cabeolica Wind Project • • • •
Cape Verde Investment EUR 65 mn ADB loan EUR 15 mn ADB roles – Long-term lender
• Structure – SPV – IPP
4
Transnet is the Bank’s first large scale syndicated financing Transnet Project • • • •
South Africa Investment USD 10 bn ADB loan USD 400 mn ADB roles – Anchor financier – Syndication lead
• Structure – Corporate loan
5
The Dakar airport is part of Senegal’s integrated infrastructure master plan Dakar Airport Project • • • •
Senegal Investment EUR 525 mn ADB loan EUR 70 mn ADB roles – Co-lead arranger – Environmental review
• Structure – SPV – 100% gov’t owned – Tax into escrow account 6
The Ithezi Thezi power project shows the AfDB’s range of instruments Ithezi Thezi Power Project
DFIs
Concessional Debt
Generation Transmission
Debt
Equity
• • • •
Zambia Investment USD 230 mn AfDB loan USD 50 mn AfDB roles – Commercial lender – Concessional lender
• Structure Tata
Utility
DFIs
– SPV – Combination of financing 7
At 300 MW, Turkana will be Africa’s largest wind energy project Turkana Wind Project • • • •
Kenya Investment EUR 520 mn ADB loan EUR 100 mn ADB/ADF roles – Long-term lender – Lead arranger – Partial risk guarantee
• Structure – SPV – IPP – Public T-line 8
TCX will pave the way for increased local currency lending The Currency Exchange (TCX) Project Schematic Flow of Funds at Inception TCX
USD Bond Market
USD
Client LCY
Global (Pan-African) Investment USD 500 mn ADB equity USD 25 mn ADB roles – Swap user – Regional partner
LCY ADB
• • • •
• Structure – Fund – Layered capital structure – Converting into FI 9
In summary...
â&#x20AC;˘ Although Africa has been left behind for many decades, huge opportunities for long-term investors are opening up. â&#x20AC;˘ Projects are getting bigger and more complex. Therefore they need a broader range of instruments to mobilize the required financing. â&#x20AC;˘ The AfDB is expanding its mix of financial tools to better meet evolving market needs.
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Amr Kamel, Operations Director, AFREXIMBANK He holds a Bachelor of Arts Degree in Economics from the American University in Cairo (1985) and an MBA in Finance from City University, USA (2001).He has a twenty seven year career in banking during which he worked with several international banks, including Bank of America and J.P. Morgan Chase, in various capacities and departments ranging from documentary credits, treasury, credit administration and trade finance. He joined the African Export â&#x20AC;&#x201C; Import Bank (Afreximbank) in 1995 as one of the nucleus staff who were involved in setting up the operations within the Bank. Mr. Kamel has attended many courses in banking and finance and has been a speaker at several international conferences on trade and commodity finance.
“Afreximbank’s Financing in Support of Infrastructural Projects in Africa” By
Amr Kamel
Director, Operations
African Export-Import Bank INFRASTRUCTURE FOR THE DEVELOPMENT OF AFRICA Presentation at the Canadian Council on Africa Conference in Montreal Canada 18-20 March , 2013
The Trade Finance Bank for Africa
TABLE OF CONTENTS 1. Introduction – Infrastructural Development – Key for African Growth 2. Growth of African Economies – The ICT Sector 3. Afreximbank Role on Infrastructural Development – A Case Study of an ICT Financing. 3.1 The Deal- Background 3.2 The Afreximbank Syndication 3.3 The Deal – Identified Issues 3.4 The Security Package 3.5 Security Sharing Arrangement 4. Conclusion 5. Brief Profile of Afreximbank 6. Other Programmes 2
1.
INTRODUCTION - INFRASTRUCTURAL DEVELOPMENT – KEY FOR AFRICA GROWTH
Effective and efficient working Infrastructure re water, road/transport, ICT, energy etc. is key and critical in the development and continuous development of any economy and especially in Africa
3
1.
INTRODUCTION - INFRASTRUCTURAL DEVELOPMENT – KEY FOR AFRICA GROWTH
Africa’s economic development in the past 10 years has been significant averaging about 4.9% growth, only second to Asia (5.1%). In this infrastructure has been responsible for more than half of the continents improved growth performance with the potential to contribute even much more.
4
1.
INTRODUCTION - INFRASTRUCTURAL DEVELOPMENT – KEY FOR AFRICA GROWTH The continent has become AN ECONOMY with GDP at US$2 trillion in 2011 vs. US$1.6 trillion in 2010, risk and uncertainties considerably reduced due to halving inflation in these past years with stronger fiscal consolidation and significant reduction in debt burden.
However, we note that the cost of addressing the continents infrastructure needs is huge and while currently large share of the infrastructures are domestically financed with central government budget as the main center of infrastructural development , the cost of continuous development of these infrastructures is exorbitant (US$100 billion+ per year).
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2. ď&#x201A;§
GROWTH OF AFRICAN ECONOMIES â&#x20AC;&#x201C; THE ICT SECTOR ICT is contributing greatly to the growth of African economies in that the level of telecoms usage, especially mobile phones, continue to grow significantly. A Report by the World Bank (Africa Infrastructure Country Diagnostic (AICD) shows that infrastructure contributed 1% to per capita economic growth from since 2000, compared with 68 basis points for other structural policies and these almost entirely attributable to advances in telecommunication services.
6
2.
ď&#x201A;§
GROWTH OF AFRICAN ECONOMIES â&#x20AC;&#x201C; THE ICT SECTOR
According to a recent report by the GSMA (a body that represents mobile operators worldwide), subSaharan Africa is the fastest growing mobile market in the world with an average annual growth rate of 44% since 2000, leaping to 475 million compared to just 12.3 million fixed line connections noting that, with the necessary spectrum allocations and transparent regulations, the mobile industry could fuel the growth of about 14.9 million new jobs between 2015 and 2020.
7
2.
ď&#x201A;§
GROWTH OF AFRICAN ECONOMIES â&#x20AC;&#x201C; THE ICT SECTOR
This demand for mobile continues to grow rapidly and in Zimbabwe and Nigeria for instance, mobile usage accounted for over half of all web traffic at 58.1% and 57.9% in 2011 respectively compared to a 10% global average. 3G penetration levels are forecasted to grow by 46% through 2016 as the use of mobile specific services develops.
8
3.
AFREXIMBANKS’S ROLE ON INFRASTRUCTURAL DEVELOPMENT – A CASE STUDY OF AN ICT FINANCING (ECONET WIRELESS $362M MULTI- FINAINCING ARRANGED BY AFREXIMBANK)
3.1 Background
Econet Wireless is a diversified telecommunications group with operations across Africa and beyond.
This multi-creditor financing relates to Econet’s operations in Zimbabwe and Burundi.
The Zimbabwe operation is already an established and profitable business. It is listed on the Zimbabwe stock exchange.
9
3.1 ď&#x201A;§
Background The Burundi operation is a relatively recent start-up and has yet to generate a profit but is rapidly building market share in Burundi. Prior to this financing, it has not received any material international debt financing.
10
3.1
Background
ď&#x201A;§
Afrexim has provided finance to the Zimbabwe operation for a number of years and has built a strong relationship with the company. Prior to this financing, Afrexim was its only significant secured lender.
ď&#x201A;§
The existing bilateral facility provided by Afrexim was close to its expiry and Econet were looking for a long-term financing solution to allow it to fulfill its ambitious expansion plans.
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Econet Wireless group structure
Simplified group structure chart: EWG
Mauritius Remaining shares listed on the Zimbabwe stock exchange
40%
75% (indirect)
Other investments not relevant to this financing
EWZ
Zimbabwe Existing bilateral facility
Afrexim
100%
EWPL Zimbabwe
Zimbabwe operating company
EWB Burundi
Burundi operating company
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3.2 Afrexim $130m syndicated facility Afrexim and Econet agreed terms for a new $130m syndicated facility for Econetâ&#x20AC;&#x2122;s operations in Zimbabwe and Burundi. The Facility was structured as a syndicated deal and provided under the Banks Financial Future Flow programme. The Financial Future Flow programme refer to future-flow debt offerings that rely upon receivables not generated from export of physical goods for repayment. Such receivables for instance include those arising from credit cards and cheque transactions, migrant remittances and royalties arising from Bilateral Air Services Agreements (BASA), over flight fees etc. Purpose 1. 2.
Refinance existing Afrexim bilateral facility which was due to expire. Finance new purchases of equipment from Ericsson of Sweden and ZTE of China for use in expanding Econetâ&#x20AC;&#x2122;s network in Burundi and Zimbabwe. 13
3.2 Afrexim $130m syndicated facility
Principal Terms
Borrower: Econet Wireless Global Limited (EWG), rather than the local operating companies in Burundi and Zimbabwe
Mandated Lead Arranger: African Export-Import Bank
Total Deal Size: USD362Million
Afreximbank Syndicate: USD$130 Million
Other Investors: USD$232 Million
China Development Bank, Ericson, Industrial Development Corporation of South
Africa (IDC), PTA Bank
Tenor: Six Year tenor with quarterly repayments
Facility Agent: African Export-Import Bank
Security Agent/Trustee: African Export-Import Bank
DFI Coordinator: DEG-Deutsche Investitions – Und Entwicklungsgesellschaft Mbh 14
3.3 The Deal- Identified Issues 3.3.1 Country Risk Issues
Why lend to EWG, the parent company incorporated in Mauritius, not to the local operating companies? ď&#x201A;§
The facility was to be used for the purchase by, or refinancing of equipment owned by, the local operating companies in Zimbabwe and Burundi respectively. Normally a bank would want to lend directly to those companies. However, this would have presented the following issues: ď&#x192;&#x2DC; Burundi is not a signatory to the treaty establishing Afrexim so EWB could not be a direct borrower from Afrexim. ď&#x192;&#x2DC; Zimbabwe country risk presented issues for the lenders and so it was preferable to structure the transaction such that it was treated as Mauritius risk rather than Zimbabwe risk. 15
As EWG was to be the borrower, it was proposed that EWG would take ownership of the financed equipment and would lease it to the operating companies, EWPL and EWB. This proved not to be possible in practice as much of the equipment was already owned by EWPL and EWB pursuant to their contracts with Ericsson and ZTE.
In light of this, the transaction was structured as follows:
The Afrexim syndicate lends to EWG in Mauritius.
Funds borrowed by EWG are passed down to EWPL and EWB by way of intragroup loans, as shown on the next page. These intragroup loans are devised so that repayments from the operating companies to EWG broadly match EWG’s payment obligations to the Afrexim syndicate. EWG assigns the benefit of the intragroup loans to Afrexim by way of security.
EWB and EWPL gives guarantees of the Burundi and Zimbabwe debt respectively.
EWB and EWPL give security over the equipment financed and over their other relevant assets. 16
Intragroup Loan structure Afrexim Syndicate $130m syndicated facility ($99m for Zimbabwe and $31m for Burundi)
Assignment of rights under intragroup loans
EWG
Mauritius
$75m intragroup loan
$24m intragroup loan by way of guarantee mandate agreement*
EWPL
Zimbabwe
$40m** intragroup loan (effectively $33m)
EWB Burundi
*Econet were unable to seek approval from the Reserve Bank of Zimbabwe for an intragroup loan in excess of $75m. The remaining $24m of Zimbabwe on-lending was accounted for through an existing guarantee mandate agreement between EWG and EWPL, already approved by the RBZ, which provided for the regular payment of fees from EWPL to EWG. The amount of these fees was sufficient to provide a cashflow equivalent to the EWGâ&#x20AC;&#x2122;s repayment obligations to the Afrexim syndicate under the $24m portion of the Afrexim syndicated facility. These cashflows were assigned to Afrexim and treated as though they were repayments of an intragroup loan. **Burundi withholding tax meant that it would be tax inefficient to use an intragroup loan of $33m with interest at the same rate as interest under the Afrexim syndicated facility. It was therefore decided to use a non-interest bearing intragroup loan of $40m, effectively capitalising the interest from the start.
17
3.3-2 DFI Specific Issues The three European DFIs (DEG, Proparco and FMO) had their own particular concerns which played an important role in the development of the facility: A.
Zimbabwe Licence – EWPL’s licence for operating in Zimbabwe expires in July 2013. The DFIs were concerned to ensure that adequate security was provided against the risk that the licence was not renewed. The solution developed was: From facility close to 2013, Econet were required to build up a sinking fund of $25m, held in a blocked account with Afrexim, which could be used to prepay the DFIs’ participation in the facility if the licence was not renewed, or to pay a licence renewal fee if required. Afrexim provided the DFIs with a put option for $25m, exercisable if the licence was not renewed, allowing the DFIs to put $25m of their participation in the facility to Afrexim. Together the sinking fund and the put option provided the DFIs with $50m of cover for the risk of licence non-renewal, which was at least equal to the forecast amount outstanding to the DFIs in July 2013. This gave them sufficient comfort to proceed notwithstanding the licence risk. 18
DFI Issues B. Environmental issues, sanctions, labour relations – The DFIs require all their borrowers to comply with certain targets and obligations on matters such as environmental impact, labour relations and sanctions compliance. They require provisions in the documents which allow them to get out of the facility immediately if these are breached. The documents therefore included some unusual provisions which were agreed by Econet to maintain the crucial support of the DFIs:
A DFI Lender can force mandatory prepayment for breach of these special provisions even if all other lenders are willing to waive the breach and do not wish to accelerate.
A DFI Lender requiring such mandatory prepayment can unilaterally require the enforcement of the whole security package if Econet does not make such prepayment, regardless of the wishes of the other lenders.
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DFI Issues C. Security coverage ratio – The DFIs’ approvals were conditional on there being achieved a specific ratio of the value of the assets subject to security to the total debt. The security given by Econet over its Zimbabwe and Burundi assets was insufficient to satisfy this on day one. The solution reached was:
An unsecured guarantee was given by Econet Investments Limited (“EIL”), another group member which owns certain valuable minority shareholdings in other telecommunications companies, for the benefit of the Afrexim syndicate.
The EIL guarantee is agreed to fall away once the required security coverage ratio is achieved by the Zimbabwe and Burundi assets alone.
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3.4 Security Package The security package originally proposed by the lenders evolved to take account of the requirements and limitations of local law and the practicalities of obtaining the security required: Security required by lenders
Outcome
Security over telecommunications equipment
Zimbabwe – Notarial Special Covering Collateral Surety Bond given by EWPL over specified equipment Burundi – General charge (this is a catch-all security instrument which creates a charge over all the material assets of EWB)
Floating charge from the local operating companies
Zimbabwe – Notarial General Covering Surety Bonds from EWPL and EWZ (this is not as extensive in scope as, for example, an English floating charge, but still creates security over most significant asset classes) Burundi – General charge
Assignment of insurances
Assignments of all insurance policies in Zimbabwe and Burundi were entered into
Charges over all bank accounts used for collection of receivables, both local and offshore
Onshore accounts – Local law charges created over all local receivables collection accounts Offshore accounts – English law account charges over accounts held with Afrexim 21
3.5Security Package Security required by lenders Assignment agreements
of
interconnection
Outcome On local legal advice, English law assignments were taken of both the national and international interconnection agreements. In most but not all cases the relevant counterparties consented to and acknowledged the assignments.
Assignment of roaming agreements
Given the large numbers of roaming agreements and the frequency with which these contracts are replaced or terminated, it was not practicable to obtain the consent and acknowledgement of each individual counterparty to the roaming agreements. The lenders agreed to accept an English law equitable assignment of these contracts (i.e. an assignment which is not notified to, or consented to by, the relevant counterparties). In addition, the lenders gained comfort from the fact that all roaming receivables pass through the clearing system operated by MACH, and the accounts which MACH holds on Econetâ&#x20AC;&#x2122;s behalf with Deutsche Bank in Belgium. A Belgian law pledge over receivables in respect of those accounts was given in favour of the lenders.
Guarantees
Guarantees were given by EWPL, EWZ, EWB, the promoter and (temporarily, as noted above) EIL. 22
3.5 Security sharing At the same time as finalising the Afrexim $130m syndicated loan agreement, Econet was looking to enter into a number of other financing agreements with other lenders for its Zimbabwe operations totalling a further $ 232 M, that also required security over the relevant assets.
But Econet had already agreed to give security to the Afrexim syndicate over effectively all the assets of its Zimbabwe operation, so it would not be practically possible to give separate security to each other set of lenders.
A security sharing solution was therefore proposed whereby Afrexim as security trustee would hold the security for the benefit of all lenders. This would also take advantage of Afrexim’s unique exemption from stamp duty in Zimbabwe, which no other lender would have been able to benefit from. This represented a very significant saving for Econet.
Afrexim was engaged by Econet as global co-ordinator to arrange the security sharing proposal.
23
Intercreditor Agreement The rights and responsibilities of the different groups of lenders were set out in an Intercreditor Agreement entered into between all the lenders and all the obligors. This set out the following basic principles:
Appointment of Security Trustee – Afrexim is appointed as security trustee to hold the security on trust for all the lenders. Appointment of local agent banks – TN Bank and Barclays Bank in Zimbabwe and Ecobank in Burundi were appointed as local administrative agents and local account banks, with responsibility for the local administration of the arrangements. Enforcement – No enforcement action could be taken except on a 66.6% majority of all lenders, except:
Burundi lenders could enforce the Burundi security alone on a 66.6% majority vote of only the Burundi lenders
DFI Lenders, as noted above, have a unilateral right to enforce following failure to make prepayment after the occurrence of certain specified breaches 24
Intercreditor Agreement Sharing of proceeds – The security package was divided into a number of ‘security pools’. Proceeds of enforcement would be divided between the lenders sharing in that pool pari passu. Operation of accounts – The operation of the various bank accounts was specified in detail to ensure that receivables are applied first to debt service and distributed fairly between all creditors. It also ensures that the Afrexim syndicate are not prejudiced by lending to EWG rather than the local operating companies. Prohibition on other security – No lender is permitted to take any security or guarantees from the Econet group outside of the security sharing arrangements (other than its own DSRA on specified terms).
25
Security pools The security package was divided up into the following pools: Pool
Participating lenders
Content of pool
Zimbabwe Pool
All Zimbabwe lenders
All Zimbabwe assets (except as referred to separately in other pools below)
Burundi Pool
All Burundi lenders
All Burundi assets (except as referred to separately in other pools below)
General Pool
All lenders
• •
Afrexim Syndicate Pool
Afrexim syndicate only
• • •
Recoveries under the personal guarantee from the promoter Recoveries from EWG which cannot properly be attributed specifically to Zimbabwe or Burundi Licence Renewal Account EIL Guarantee Rights of EWG under the Intragroup Loans, and the associated bank accounts of EWG used for collection of receivables under those Intragroup Loans
Following any enforcement of any security pool, the proceeds would be shared pari 26 passu between the lenders participating in that pool.
4. CONCLUSION
Even for seemingly complex infrastructural deals, Afreximbank can deliver solutions employing its status/structuring expertise to overcome the issues of lending for instance into difficult jurisdictions such as Zimbabwe and Burundi in achieving this. Also ensuring effective partnership with other stakeholders as in the case of Econet in delivering solution to the complex challenges of financing the Company’s Telecoms expansion programme for the benefit of Africans in both the short and long-term.
27
4. CONCLUSION
Lenders with varying objectives and issues from across Africa, Europe and China were successfully brought together because of the security sharing arrangement arranged by Afreximbank
Afreximbank therefore invites partners including financial institutions, African and non-African, to collaborate with it to provide finance in the Continent, for the infrastructural development and economic wellbeing of Africa and its people on key sectors including transportation, energy, water and ICT as meeting Africa’s infrastructural needs is huge and enormous though presents a global challenge, investment in these areas could present handsome returns. 28
4. CONCLUSION ď&#x201A;§
As partners, let us therefore work together in closing Africaâ&#x20AC;&#x2122;s funding gap, noting amongst other infrastructural products that Information and Communication Technologies is definitely a boost to the economy that we all want to see and achieve.
29
5. BRIEF PROFILE OF AFREXIMBANK The Bank was established in 1993 as a Pan-African Exim Bank with its headquarter in Cairo Egypt branches currently at Abuja Nigeria and Harare in Zimbabwe. It is an international Public-Private Partnership, the goal of the founding father’s being to create an African, private-sector led Bank.
30
5. BRIEF PROFILE OF AFREXIMBANK The authorized share capital of US$ 750 Million, with long term stable credit ratings of Baa2 (Moody’s), BBB-(S&P), BBB – (Fitch).
Moody’s
- Baa2
- Stable
S&P
- BBB-
- Stable
Fitch
- BBB-
- Stable
31
5. BRIEF PROFILE OF AFREXIMBANK
Three broad services offered by the Bank include Credit (trade and project finance), Risk Bearing (Guarantee & Credit Insurance) and Trade Information and Advisory Services) in line with the mandate to finance and promote Intra- and Extra African Trade and Projects.
Cumulative Credit approvals from 1994/95 to end of 2012 amounts to over USD$25 billion.
We however note that request for the Banks products and financing continues to grow astronomically with current pipeline of around $ 23 bn from $ 3-4 bn in 2007.
32
6. OTHER PROGRAMMES Other programmes in support of infrastructural financing include the following: 1.
ECA Loans Facilitation Programme: This is to promote export manufacturing in Africa in order to diversify Africa’s efforts away from commodities. It is a special programme that provides not only financing but also advisory and twinning services that facilitate transfer of technology and market access. The Bank therefore partners with ECA’s and DFI’s in leveraging international financing into Africa. The ECA’s provide financing and guarantees for the importation of essential goods from their country, while the DFI’s provides term financing for essential projects.
33
6. OTHER PROGRAMMES 2. Asset-Backed Lending: This was due to growing demand from African entrepreneurs for financing to enable them take advantage of privatization and local content promotion opportunities in the continent by acquiring physical assets, which can serve as collateral.
34
6. OTHER PROGRAMMES 3.
CONTOUR (Construction/Tourism-Linked Relay Facility) This special instrument is used for the financing of tourism in Africa, in recognition of the economic contribution and developmental impact of tourism on African economies. It is managed through a risk sharing arrangement under which a partner bank is responsible for structuring, arranging and providing loans for the construction of hotels and other tourism facilities as a real estate project on the back of a contingent guarantee provided by Afreximbank, recourse only limited to the successful completion and handover of the real estate and delivery of security taken for its construction financing to the Bank.
35
Thank You African Export-Import Bank 2013 36
Diane Belliveau, Regional Manager – Africa, Export Development Canada (EDC) Export Development Canada (EDC) is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC’s knowledge and partnerships are used by more than 8,400 Canadian companies and their global customers in up to 200 markets worldwide each year. Financially self-sustaining, EDC is a recognized leader in financial reporting and economic analysis. EDC’s main objectives are to meet with Canadian exporters interested in Ghana and Nigeria and learn about their interests, successes and challenges. It also wishes to learn more about the extractive and infrastructure industries in these markets and build on its ongoing relationships.
Africa Rising II EDC Supporting Business in Africa March 2013
Table of Contents
2
1. About EDC …………………………………...
Slides 3-7
2. EDC’s Products and Services………………
Slides 8-13
3. EDC in Africa………………………………….
Slide 14
4. EDC’s Partnership Approach……………….
Slide 15-16
5. Contact Us……………………………………
Slide 17
6. Appendix 1 – Recent Transactions……….. Appendix 2 – Selected Value Chains…….. Appendix 3 – Upcoming events……………
Slides 18-20 Slides 21-23
Slides 24-25
About EDC Canada’s Export Credit Agency Crown corporation wholly owned by Government of Canada
Financially self-sustaining Operates on commercial principles EDC notes are a direct and unconditional obligation of Canada
3
Domestic Currency
Foreign Currency
Long-term
Short-term
Long-term
Short-term
Standard & Poor’s
AAA
A-1+
AAA
A-1+
Moody’s
Aaa
P1
Aaa
P1
JCR
AAA
DBRS
AAA
AAA R-1 (high)
AAA
R-1 (high)
Canada Banking System Is World's Soundest, Economic Forum Says in Survey Canada’s banking system was ranked the world’s soundest for the fifth consecutive year by the World Economic Forum. September 5, 2012
EDC’s Role
To support and develop Canada’s export trade and international business efforts Financing and insurance solutions for Canadian exporters and investors
4
2012 Performance Highlights
Facilitated $87 billion in business carried out by Canadian companies Served 7,400 customers Supported business in 195 countries Facilitated $4.4 billion in emerging markets
5
Connecting with Canadian Businesses Across Canada EDC has offices across Canada We do business where business is done
St. John’s, Newfoundland & Labrador
Edmonton, Alberta Vancouver, British Columbia Calgary, Alberta
Moncton, New Brunswick
Regina, Saskatchewan
Halifax, Nova Scotia Quebec City, Quebec Ville St-Laurent, Quebec Montreal, Quebec Ottawa, Ontario
Winnipeg, Manitoba
Mississauga, Ontario Toronto, Ontario
Windsor, Ontario
London, Ontario
Supporting Business Worldwide
EDC’s foreign representation
North America / Caribbean $52.7B (51%) Asia-Pacific $24.3B (24%)
Europe $13.1B (13%) South / Central America $6.3B (6%) Africa / Middle East $6.3B (6%) % = percentage of EDC’s total business facilitated
Moscow, Russia Düsseldorf, Germany
Beijing, People’s Republic of China
Istanbul, Turkey
Shanghai, People’s Republic of China
Monterrey, Mexico
New Delhi, India
Mexico City, Mexico Panama Mumbai, India
Abu Dhabi, UAE
Lima, Peru Rio de Janeiro, Brazil Santiago, Chile
São Paulo, Brazil
Location of EDC Representation
7
Singapore
EDC Products & Services
Financing Insurance Bonding Market Intelligence Criteria for EDC support: Canadian benefits, Corporate Social Responsibility, Credit worthiness of borrower or risk counterpart, exporter financial and technical capabilities, etc.
8
Financing Services Adresses the need of Canadian investors, Canadian exporters and foreign buyers of Canadian goods and services Structures
Corporate Financing, with well established and credit-worthy buyers of Canadian goods and services
Bank on-lending through lines of credits with banks, funds are disbursed to Canadian exporters
Project Financing*, with well established sponsors and in partnership with other financial institutions
Leasing (loan to lessor of asset e.g. plane)*
EDC mandate
Direct export by Canadian company, subject to OECD ECA guidelines
Canadian direct investment abroad*, subject to EDC’s guidelines
Pull transaction* , based on existing and future procurement from Canada
Protocols with Foreign multinationals, based on their operations in Canada and contribution to Canada’s economy
Foreign Direct Investment into Canada*, subject to 50% of the Canadian operations be exported from Canada and investment bringing tangible benefits to Canada
9 * Solely under commercial terms
Financing Eligibility Criteria for Buyer Financing Exporter
Business operating in Canada Technically, financially capable Deal demonstrates benefits to Canada Buyer/Borrower
Credit worthy, from acceptable country, including local regulations permitting cross-border financing Project Technically, commercially viable Corporate Social Responsibility Anti-corruption declarations; Public disclosure of information
Environmental review; Human rights assessment
10
EDC Products & Services – Short Term Insurance EDC provides credits insurance to exporters to protect them against the risk that their buyer do not pay them for a variety of commercial or political reasons.
Account Receivable Insurance provides coverage of non-payment of short-term export receivables. Key benefits: Covers 90% of losses when foreign buyers don’t pay Increase working capital by using it as collateral against operating lines Allows exporters to offer more competitive payment terms and accept large offers
Improved balance sheet positions by freeing up capital normally provisioned for losses Increases market penetration opportunities with EDC-backed credit decisions
11
Documentary Letters of Credit Insurance provides insurance coverage to Canadian banks for letters of credit provided to foreign banks in emerging markets. This allows the Canadian banks to add confirmation or to provide credit facilities against those letters of credit.
EDC Products & Services – Insurance Political Risk Insurance
EDC covers private sector investments and loans, coverage can be provided to investors and/or banks. PRI coverage addresses:
Expropriation and Creeping Expropriation
Political Violence
Transfer & Conversion
Arbitration Award Default
Public Sector Credit Risk: provides a comprehensive insurance for non payment from Sovereign / quasi Sovereign obligors. Often used to structure buyer financing in partnership with a commercial bank
Of the total PRI insurance facilitated by EDC in 2011, 42% was in Africa with Infrastructure & Environment and Extractive as the top sectors
Contract Frustration Insurance and Bonding EDC provides a guarantee to the Exporter Bank so it can issue guarantees to the buyers and suppliers, adding capacity to the Exporter’s balance sheet without tying up cash EDC can also protect from wrongful calls
12
Type of Guarantees considered include: Performance Bonds, Advance Payment Guarantees, Retention Money Guarantees and Warranty Bonds
Benefits of Working with EDC EDC can add valuable capacity and flexibility to your financing packages Because EDC is an ECA, its borrowers may benefit from elements such as withholding tax exemption As an ECA, EDC may be able to co-lend with other ECAs and in longer-tenor, ECA specific tranches of debt packages
EDC has many reinsurance partners that enable us to front insurance policies of varying size and scope Introduces new suppliers to your firm Strong Corporate and Social Responsibility representation
13
EDC in Africa Business Volume by Product, 2007-2012 1,250,000,000.00
Contract Insurance and Bonding
1,000,000,000.00
In 2012, EDC supported 474 Canadian companies in 46 African countries worth C$ 2.13 billion in transactions: Sub-Saharan Africa: C$ 1.6bln
Financing
North Africa: C$ 496mln
750,000,000.00
Political Risk Insurance
500,000,000.00
Short Term Insurance
250,000,000.00
0.00
2007
2008
2009
2010
2011
2012
In 2012 the top three countries EDC supported in terms of volume were: South Africa (C$ 428mln), Angola (C$ 299mln) and Ivory Coast (C$ 213mln)
In 2011, EDC supported 457 Canadian companies in 46 African countries worth C$ 2.39 billion in transactions:
Business Volume by Sector, 2012 Transportation 18%
Sub-Saharan Africa: C$ 1.7bln
Extractive 25%
North Africa: C$ 682mln Resources 6%
In 2011 the top three countries EDC supported in terms of volume were: South Africa (C$ 803mln),Angola (C$ 281mln) and Egypt (C$ 46mln)
Light Manufacturing 3%
14
Infrastructure & Environment 29%
Information & Communication Technology 19%
EDC partnership with Afreximbank
African Export – Import Bank is a international multilateral Bank established in 1993 and headquartered in Cairo, Egypt. The Bank is a major player in the continent and has a broad objective of promoting and financing intra- and extra- African trade.
Afreximbank is rated by all major Credit Agencies: BBB-/stable (Fitch), BBB-/stable (S&P) and Baa2/stable (Moody’s) (as of December 31st 2012).
In November 2012, EDC and Afreximbank entered into a USD 30 million line of credit arrangement to facilitate trade between Canada and Africa. Eligibility criteria include:
Beneficaries should be entities based in member countries of Afreximbank.
Transactions must meet Afreximbank and EDC eligibility criteria which include among others: Canadian benefits, Credit worthiness of the borrower, Exporter financial and technical capabilities, compliance with environmental, corporate and social responsibility policies.
Further information can be obtained from Afreximbank’s website www.afreximbank.org
The line of credit is designed to support mid-size transactions (minimum amount of USD 5 million) over a maximum tenor of 5 years, with a special focus on private sector borrowers. 15
EDC – Africa Trade Insurance & IFC Africa Trade Insurance EDC entered into a MOU with Africa Trade Insurance (‘ATI’, www.ati-aca.org) to facilitate trade and foreign direct investment between Africa and Canada. ATI is a multilateral financial institution providing export credit insurance, political risk insurance, investment insurance and other financial products to help reduce the business risks and costs of doing business in Africa. ATI has expanded membership to more than a dozen African countries with plans to attract nonAfrican member states by 2011. International Finance Corporation (IFC) In 2012, EDC entered into a strategic partnership with IFC, signing both a Master Cooperation Agreement (MCA) and MOU. The two organizations are working together to bring additional capacity to emerging market transactions and projects where Canadian interests and developmental benefits intersect
EDC and IFC are working together in the areas of Infrastructure and Clean technology, Renewable power, Agribusiness and Manufacturing (Supply chain financing) The MCA ensures a streamlined and efficient lending process on IFC mandated syndicated transactions where EDC is a parallel lender 16
Selected upcoming events for 2013 (1/2) EDC attends Trade mission and a a number of Canadian and International trade shows and conferences, which are an excellent way to connect with EDC sector experts, Canadian exporters and other Canadian agencies. EDC – Africa team will be present at the following Trade shows and conferences: Trade Mission to Nigeria and Ghana organized by the Department of Foreign Affrairs and International Trade of Canada – January 27 to February 1 Mining Indaba 2013 – Cape Town - February 3 to 7 (http://www.miningindaba.com/2013mining-indaba-preview/) Mining Indaba is the world’s largest gathering of the most influential stakeholders – financier, investors, mining professionals, government officials, etc- in African mining regularly attended by over 7,000 participants.
PDAC 2013 – Toronto – March 3 to 6 (http://www.pdac.ca/pdac/conv/)
PDAC International Convention, Trade Show & Investors Exchange is the world’s leading Convention for people, companies and organizations in, or connected with, mineral exploration. It’s attended by over 27,000 participants from 120 countries, with opportunities to attend technical sessions, short courses as well as social and networking events.
Trade Mission to Angola organized by the Department of Foreign Affairs and International Trade of Canada – March 11 to 13
17
Selected upcoming events for 2013 (2/2) Infrastructure Trade Mission to Morocco organized by the Department of Foreign Affairs and International Trade of Canada – March 24 to 28 Africa Energy Forum 2013 – Barcelona – June 18 to 21 (http://www.energynet.co.uk/aef/index.html) The Africa Energy Forum (AEF), launched in 1999, is Africa's premier annual power and gas investment and business forum, where governments and state utilities address the international energy community on opportunities available in Africa's power and gas sectors.
More information on certain events is available at: http://www.edc.ca/events/en/pages/upcoming-events.aspx or please contact our Africa Team
18
Selected Recent Transactions in Africa
NHS Insurance Provider CAD 75-100 million
Financing CAD 25-50 million
Financing CAD 50-100 million
Financing CAD 25-50 million
In support of sale of Canadian goods & services
Support for future procurement of various Canadian goods and services
Participation into a USD 350 million Syndicated credit facility for General Corporate Purposes
Sale of aircraft engine
Kenya November 2012
Egypt November 2012
Financing CAD 25-50 million
Financing CAD 50-100 million
Financing CAD 100-250 million
Financing CAD 15-25 million
Sale of aircraft, spare parts and services
Sale of aircraft
In support of future procurement of various Canadian goods & services
In support of sale of technology for various Canadian exporters
Rwanda October 2012
Ethiopia September 2012
South Africa June 2012
Ghana May 2012
19
Gabon November 2012
Tanzania November 2012
Selected recent Transactions in Africa
NHS insurance provider CAD 250- 300 million
Mandate Lead Arranger
In support of the financing of SNC-Lavalin for the rehabilitation of the Matala Dam
Financing USD 100-250 million
US$ 100 million Senior Secured RBL Facility
In support of sale of aircraft
Egypt July 2010
Ethiopia April 2010
Angola May 2011
NHS insurance provider CAD 100- 250 million
Financing CAD 100- 250 million
In support of the financing of Canadian goods and services for the construction of the Takoradi power plant
In support of the sale of Telecommunication Equipment and Services
Ghana November 2009
20
South Africa February 2009
Contact Information Lewis Megaw Regional Vice-President, Africa, Europe and Middle-East Tel: (613) 597-7047 Fax: (613) 598-2503 Email: lmegaw@edc.ca Patricia Bentolila Chief Representative â&#x20AC;&#x201C; Africa Tel: (613) 598-3219 Fax: (613) 598-2503 Email: pbentolila@edc.ca Diane Belliveau Regional Manager- Africa Tel: (613) 597-8846 Fax: (613) 598-2503 Email: dbelliveau@edc.ca
www.edc.ca 21
David W. Fulton, Head USA and Canada Relationship Management Unit, IFC, World Bank Group David Fulton serves as Head of the USA and Canada unit at the International Finance Corporation, where he leads a program to broaden and deepen IFC relations with the U.S. and Canada. IFC is the worldâ&#x20AC;&#x2122;s largest development finance institution focused on emerging and frontier markets. The IFC finances client firms directly and through intermediaries such as banks, leasing companies, and private equity funds. Prior to this position, Mr. Fulton served as a career U.S. diplomat with the rank of Minister Counselor. He has more than twenty years experience supporting trade and investment interests abroad, including assignments at the U.S. Embassies in Bangladesh, Australia, Italy, Singapore, Poland, and the Philippines. He also served in Washington as Acting Deputy Assistant Secretary for International Operations and Director of Strategic Planning for the Foreign Commercial Service, and as Advisor to the U.S. Executive Director at the World Bank Group. Mr. Fulton has a law degree from the College of William and Mary, and a Masterâ&#x20AC;&#x2122;s degree in Foreign Affairs from the University of Virginia.
IFC Infrastructure in Africa
Introduction to IFC
2
IFC is a Member of the World Bank Group IBRD
IDA
International Bank for Reconstruction and Development
International Development Association
Est. 1945
IFC
Est. 1960
MIGA
International Finance Corporation
Multilateral Investment and Guarantee Agency
Est. 1956
Est. 1988
Role:
To promote institutional, legal and regulatory reform
To promote institutional, legal and regulatory reform
To promote private sector development
To reduce political investment risk
Clients:
Governments of member countries with per capita income between $1,025 and $6,055.
Governments of poorest countries with per capita income of less than $1,025
Private companies in 182 member countries
Foreign investors in member countries
- Technical assistance - Loans - Policy Advice
- Technical assistance - Interest Free Loans - Policy Advice
- Equity/Quasi-Equity - Long-term Loans - Risk Management - Advisory Services
- Political Risk Insurance
Products:
• IFC is the private sector “arm” of the World Bank Group • IFC combines the resources of a multilateral finance institution with a private sector / commercial focus 3
IFC’s unrivaled blend of global and local perspectives 100+ Country Offices worldwide
Tbilisi Almaty Mexico City Dakar Port-of-Spain Bogota
Nairobi
Sao Paulo Buenos Aires
• Thorough understanding of global trends • Deep understanding of local markets through presence on-the-ground • Unique “global/local” perspective for clients’ benefit (ideas, relations) 4
IFC in Infrastructure
5
What the market says : IFC’s track record and recognitions
Africa Deals Bujagali Hydropower – Africa Power Deal of the Year (2007) Dakar Toll Road – Africa Transport Deal of the Year (2010) TAV Tunisia– Africa Transport Deal of the Year (2008) Lesotho Hospital Social Infrastructure Deal of the Year (2009) Tata Mundra – Asia Pacific Deal of the Year (2008)
Peru LNG – Latin America Deal of the Year (2008) Magat Hydro – Asia Pacific Deal of the Year (2007) Queen Alia Airport – Middle East Transport Deal of the Year (2007)
Rotor Electrik – EMEA Onshore Power Deal of the Year (2009) Laraib Energy – Asia Power Deal of the Year (2009)
6
Best Multilateral of the Year (2007)
IFC’s Value Added Long Term Financing •Corporate / Project / Acquisition • Foreign / Local Currencies • Equity / Quasi-equity • Carbon Finance
Financial Structuring & Industry knowledge
Relationship with / understanding of local authorities
IFC’s Products
Capital Mobilization • B loan program • Credit enhancement (Partial/ Full Credit Guarantee)
Expertise in emerging markets Advisory Services
7
A “one stop shop” with a broad range of financial Instruments => IFC can meet its clients and partners financial needs through this unique blend
Equity
Mezzanine / Quasi Equity
Senior Debt & Guarantees
• Corporate and JV • Typically 5-15% stake (max. 20% for IFC’s own account but can be increased by leveraging IFC managed equity funds – e.g., AMC) • Long-term investor • Not just financial investor, adding to shareholder value • Usually no seat on board • Infraventures (early equity investments) • • • •
Subordinated loans Income participating loans Convertibles Other hybrid instruments
• • • • •
Senior Debt (corporate finance, project finance) and Guarantees Fixed/floating rates, US$, Euro and local currencies available Commercial rates, structured loans Long maturities: 8-20+ years, appropriate grace periods Mobilization of funds from other lenders and investors, through co-financings, syndications, underwritings and guarantees • Swaps and other derivatives/ risk management products
IFC is the only Development Finance Institution with such range of instruments 8
Beyond Financial Services: Helping Projects Happen Financial Close Project Development Phase
How Can IFC Help? A
B Early equity investments => InfraVentures
C Relationships with Governments & World Bank
D Sector/Indutry expertise
Helping Arrange Financing
=> Global Coordinator Role
IFC can effectively support projects through its multiple capabilities
9
Our projects: a snapshot Africa Senegal
Dakar Toll Road A Loan:EUR22.5 million Parallel loans: EUR40 million Lender November 2010
Rwanda
Intraspeed
Tanzania
Senegal
TRL
Kounoune IPP
Senegal
Comasel
Uganda
Bujagali Energy
C Loan: US$7.5 million
A Loan: US$44 million
$20,624,000 A Loan Project Financing
$750,000 Equity Investment
$130,000,000 A and B Loan Financing
Lender November 2006
Lender September 2007
Lender December 2005
Shareholder February 2010
Lender June 2007
Rest of the world Cambodia
Colombia
Cambodia Airport
Avianca
A Loan: US$10 million
A Loan: US$50 million
Lender January 2004
Lender September 2008
Turkey
Turkey
Delta Petroleum A Loan US$35 million C Loan: US$10 million
Bulgaria
Enerjisa
Tata Ultra Mega
AES Kavarna
EUR513,000,000 A and Loan Financing
$450,000,000 Equity and Loan Financing
$58,000,000 Loan Financing
Shareholder and Lender April 2008
Lender August 2008
Mandated Lead Arranger June 2008
Lender October 2007
India
• Investments from $750 k to $400 millions • Mix of global sponsors and regional / local leading companies • Senior debt, subordinated debt and equity 10
Power
Our clients By Sectors Transport
vuela
Utilities and Gas
Renewable Energy
11
IFC in Sub-Saharan Africa: over 18 Local Offices Optimal coverage of local markets and proximity to Governments and co-financiers Algiers Mediterranean Sea
Rabat
Beirut Jerusalem
Cairo
Amman Dubai
Sana’a
Dakar Ouagadougou
Freetown
N’Djamena Addis Abala
Monrovia
Abidjan
Accra
Lagos Douala
Nairobi
Kigali Kinshasa ATLANTIC OCEAN
Lusaka Antananarivo
Johannesburg
IFC Hubs IFC Country Offices
Cape Town
12
Maputo
INDIAN OCEAN
IFC Approach to Financing
13
How We Finance Projects A – For IFC’s Own Account IFC Investment
Project Type: Corporate or Project Financing Greenfield >=$50 m.
Up to 25% of project cost for IFC’s account*
Expansion or rehabilitation
Up to 50% of project cost
* 35% if total project cost is less than $50 million.
B – Capital Mobilization • Extensive relationships with commercial banks and DFIs • Capacity to syndicate to commercial banks through the B-Loan program • Mobilization of capital from other DFIs: special facilities
This makes IFC unique.
14
IFC’s Project Cycle Early Review • Early Management In Principle approval
Due Negotiation Diligence
Commitment and Disbursement
• Appraisal
• Negotiation and agreement of principal terms
• Credit committee approval
• Board approval
• Mandate letter
Portfolio • Regular discussions of project performance
• Signing of legal documents
• Disbursement
We agree on a specific timeline to meet clients’ needs.
We can be as fast as clients require and deal environment permits: some transactions have closed in less than 3 months 15
Mobilizing Financing - Syndication “B-Loan” Structure Top 10 IFC B-Loan Participants 1. Calyon 2. Cordiant Capital
3. Citigroup 4. ING Bank
5. ABN AMRO 6. BayernLB
7. Sociéte Générale 8. HSBC
9. Natixis 10. KBC Finance Ireland
Loan Agreement
IFC
Borrower A + B Loans
Participation Agreement
B Loan
• A loan is for IFC’s own account • B loan is for the account of participant commercial banks • Only one loan agreement signed by the borrower and IFC
Participants
• IFC is the lender of record for the entire loan (A+B) • Structure allows participants to benefit from IFC privileges and immunities • Better pricing/tenors than otherwise available; preferred creditor access to foreign exchange • IFC Loans exempt from withholding taxes
16
Mobilizing Financing in Africa – Parallel Loans Structure Cooperation between IFC and other International Financial Institutions allow design of optimal funding structures
• Master Corporation Agreement (MCA) negotiated and signed in 2009 by IFC and selected DFIs (DEG, Proparco, FMO) is becoming an accepted standard for cooperation among IFIs. • At of end 2010, 8 signatories (including DBJ, OFID, BIO, BSTDB and OeEB). Additional signatories expected by year-end 2011.
• Under MCA, standard procedures to simplify financing for clients (simplified, standardized loan agreements, Common Term Agreement (CTA) structure, standardized Intercreditor Agreement principles...etc.) • Infrastructure Crisis Facility to allow additional financing mobilization (on the same terms as the IFC investments)
GTFP: Global Trade Finance Program, MEF: Microfinance Enhancement Facility SME: Small and Medium Enterprises, GAFSP: Global Agriculture and Food Security Program
17
Risk Management Instruments and Insurance IFC is unique among DFIs in its offering of a range of fully integrated financial solutions
IFC’s experienced in-house risk management specialists assist clients with: • the provision of financial risk mitigation instruments such as Interest Rate Swaps, CrossCurrency Swaps, Options and Forward Contracts, • Risk assessment and guidance on mitigation, transfer and treatment
• Input into risk philosophy or risk management strategies to help identify exposures that can be handled internally, and those which are best transferred to other parties • Sharing of risk management best practice for regions/industries Similarly, experienced in-house insurance specialists assist with:
• Guidance on ways to reduce insurance costs and input into selection process for external advisors/brokers • Claims "assistance" with insurers IFC’s AAA rating translates into a substantial competitive advantage passed through to clients
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Environmental and Social Footprint
19
Applying IFC’s Performance Standards: A Tailor-Made Process IFC’s Perfomance Standards (PS) • • • • • • • •
PS1. Social and environmental assessment and management systems PS2. Labor and working conditions PS3. Pollution prevention and abatement PS4. Community health and safety PS5. Land acquisition & involuntary resettlement PS6. Conservation of biodiversity and sustainable natural resource management PS7. Indigenous peoples PS8. Cultural heritage
• Meeting all 8 standards upfront not required – select PS apply to each project and most clients meet many of them already • In areas in which clients do not already benefit from international best practices, we agree on a flexible action plan and guide them through the process • Implementation process is tailored to client’s particular situation 20
IFC’s Performance Standards: Best Practice Tools in Risk Management Implementing the Performance Standards Guards Against Unforeseen Interruptions in Project Execution: • Strikes or protests • Costly environmental clean ups • Loss of investor confidence due to unfavorable media attention
Meeting the Performance Standards Helps to Improve the Bottom Line: • Helps ensure smooth and continuous operations • Maximizing local development benefits fosters good neighborly relations • Good corporate citizenship raises project’s acceptance locally and with governments • Optimization of resource management (water, energy, etc) • Helps to create reliable and cost effective supply chains • Helps attract top talent both locally and internationally • Enhances company brand value to investors
Meeting the Standards = Stamp of Approval
21
Environmental and Social Risk Mitigation IFC in-house environmental and social specialists assist clients with:
•Community development & consultation
•Pollution prevention •Cleaner production
•Cultural property •Socioeconomic/workplace/ labor issues
•Impact assessments •E&S management systems
•Land acquisition/resettlement/ compensation
•Health & safety •Indigenous peoples •HIV/AIDS •Biodiversity •Gender empowerment
22
IFC’s Performance Standards: International Stamp of Approval “Equator Principles” adopted by 50+ of the world’s leading banks and based on IFC’s Performance Standards
Apply to 85% of project financing worldwide
23
IFC’s Value Added: Sustainability oriented services Linkages programs designed to meet clients’ community investment strategies/needs Identify and provide opportunities to small businesses through training to increase employment and profits.
Corporate Diagnostic Financial •Structuring • Local contract identification and local & Industry knowledge
Outcome Indicators
Impact Indicators
# of new contracts signed
$ increase in SME revenues
$ value of new contracts signed
# of SMEs attracting new financing # of formal jobs created
content policy/strategy
Ghana: Newmont Ahafo mine
• SME mapping and implementation partner mapping and evaluation • Design (choice of vehicle i.e. enterprise center) – importance of partnerships IFC’s Products • Implementation – SME evaluations and training programs underway
Increased number of local MSME contracts from 25 to 391 (total contracts worth US$16 million) 1900 additional jobs created
Peru: IFC Peru LNG “ForPyme” program working with 116 small businesses near PERU LNG plant, raising skills in: quality, negotiations, marketing, financing, costs, safety, and environment
• Monitoring and evaluation
Expertise in emerging markets
Chad: ExxonMobil Cluster companies for in-country sector impact
Engage large infrastructure companies
• Creation of an Enterprise Center • US$129 million of new SME contracts signed
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Credentials in Infrastructure IFC in Transport
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Transport Portfolio: $2.6 Billion As of December 31, 2010
By Region
By Product
Africa, 5%
Guarantee, 1% MENA, 21%
Quasi-Loan, 13%
Latin America, 35%
Equity, 16%
Loan, 70% Eastern Europe, 18%
Southern Europe/ Central Asia, 6%
South Asia, 5%
East Asia, 10%
Well diversified portfolio. Full range of financial instruments: strong equity/quasi-equity focus.
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Investments in the Transport sector in Africa and Middle East Tunisia
Senegal
Jordan TAV Tunisia
Dakar Toll Road
A Loan:EUR130 million B Loan: EUR265 million C Loan: EUR30 million
A Loan:EUR22.5 million Parallel loans: EUR40 million
Queen Alia A Loan: US$70 million B Loan: US$160 million C Loan: US$50 million
Equity (15%): EUR30 m November 2010
April 2008/June 2009 November 2007
Burkina Faso
Egypt
BBCOM INT.
SPDC
A Loan: US$20 million
A Loan: US$2.5 million
March 2007
April 2004 Kenya
Cameroon
Kenya Uganda Rail
AEF 3T Cameroun A Loan: UD$.3 million
Rwanda
Tanzania
Intraspeed
TRL
C Loan: US$7.5 million
A Loan: US$44 million
A Loan: US$22 million C Loan: US$10 million
December 2006
December 2005
November 2006
September 2007
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Investments in the Transport sector in Central America Mexico
Jamaica
Dominican Republic
Dominican Republic
infrainvest
MBJ
CAE
Equity: US$50 million
A Loan: US$20 million C Loan: US$20 million
A Loan: US$20 million
A Loan: US$13 million C Loan: US$8 million
June 2007
December 2005
2010
November 2006
Mexico
vuela
Sans Souci
Dominican Republic
Vuela
Aerodom A Loan: US$45 million B Loan: US$15 million
A Loan: US$40 million
November 2004 June 2006
June 2006 El Salvador
Panama
TACA Airlines
Copa Airlines Costa Rica
A Loan: US$30 million
A Loan: US$15 million Aeropuerto IJS A Loan: US$35 million
June 2005
June 2005
December 2000
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Case Study 1 : Dakar Toll Road
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Dakar-Diamniadio Toll Road Project Description • A 30-year develop, build, finance and operate concession of a 25 km toll road from Dakar to Diamniadio • Sponsor: Eiffage • Total Project Cost: EUR230 m
• Closing: November 15, 2010 • IFC Role: Global Coordinator & lead financier
Tranche
Product
Amount
Tenor
A Loan
Senior Debt IFC’s Account
EUR12.5 million
15 years
C Loan
Subordinated Debt IFC’s Account
EUR10 million
15 years
Parallel loans
Senior loans
EUR37.5 million
13.5-15 years
Co-financiers
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IFC Added Value 1) ‘Making the Cash Flow Work’: (i) Long Tenor Senior Debt Tranche (15 years); and (ii) 15-y Subordinated Loan with a 10-year grace period 2) Strengthening the Concession Contract 3) Dealing with traffic risk
4) Dealing with Environmental & Social Issues (≈ 30,000 people to relocate) 5) Identifying and fixing issues specific to the local context based on past experience 6) Creating a momentum, fixing issues and reaching closing under a tight time schedule Completed in eight months door-to-door: a record for such a complex, first of its kind deal Feb 10 Initial Discussion Management Committee Approval Mandate Letter
April 10
July 10
Appraisal Negotiations
Credit Approval Legal Documentation
31
September/November 10 Board Approval Financial Closure Commitment
Credentials in Infrastructure IFC in the Power Sector
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Power Portfolio: $3.7 Billion As of December 31, 2010
By Region
By Product
Africa, 10%
Guarantee, 0.3% MENA, 11%
Quasi-Loan, 16.8%
Latin America, 23%
Eastern Europe, 1%
Equity, 6.1%
Loan, 76.8%
Southern Europe/Centr al Asia, 14%
East Asia, 19%
South Asia, 22%
Well diversified across regions Increasing focus on equity/quasi-equity instruments
33
IFC’s Track Record in Power Projects: 120 projects in 40 emerging markets countries 21,733 MW private generating capacity 94 generation projects
US$5 billion committed in power
7 transmission projects
19 distribution companies Financing: $ 5 billion committed in generation, T & D $ 2.5 billion raised through syndication $ 22 billion aggregate project values US$4 billion committed in generation
Renewables: 19% of generation investments in hydropower $0.9bn in 30 renewable energy projects (20 hydro, 2 wind, 2 geothermal & 6 other)
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Investments in the Power sector in Africa Togo Senegal
Djibouti
Senegal Contour Global
GTI Dakar
Kounoune IPP
$19,377,000 Equity and A Loan Financing
$20,624,000 A Loan Project Financing
Lender and Shareholder May 1998
Rwanda
Lake Kivu IV REI Djibo
$14,000,000 Shareholder & Lender
$4,000,000 Equity Investment
Lender & shareholder June 2008
Shareholder November 2009
Lender December 2005
$4,000,000 A Loan Project Financing
Subordinated Debt June 2008
Kenya
Senegal
Kipevu
Comasel
$17,583,000 A Loan and Equity Financing
$750,000 Equity Investment
Lender and shareholder May 2000
Shareholder February 2010
Uganda
Uganda
Ivory Coast
Azito $40,504,000 A, B, and C Loan Financing
Cameroon
Nigeria
Geometric
AES Sonel
$4,000,000 Shareholder
$89,355,000 A Loan Project Financing
Mandated Lead Arranger December 1998
Lender June 2006
Lender June 2008
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Bujagali Energy
Umeme Ltd
$130,000,000 A and B Loan Financing
$25,000,000 A Loan Financing
Lender June 2007
Lender June 2009
Case Study 1 : Comasel - Rural Electrification
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Comasel St Louis Rural Electrification concession Project Description • A 25-year concession to develop a distribution network and sell electricity to at least 19,500 rural households in northern Senegal • Sponsor: Office National de l’Electricité - Morocco • Total Project Cost: US$ 21.9 m
• Closing: February 26, 2010 • IFC Role: Provider of risk capital
Project Key Sources of Funding Sponsor Equity
US$ 2.6 million
IFC Straight Equity
US$ 0.7 million
Senior Loan
US$ 8.6 million
World Bank Funded CAPEX OBA subsidies
US$ 7.0 million
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Sponsor
IFC Added Value
1) Providing access to and coordination with World Bank, which provides a critical portion of the financing of the project 2) Helping in mobilization of senior loan financing 3) Providing understanding of energy sector policy in Senegal 4) Providing support and credibility to innovative private sector driven solution to Rural Electrification Completed in 15 months: Nov 08
Feb â&#x20AC;&#x201C; Apr 09
Sept 09
Initial Discussion Management Committee Approval Mandate Letter
Appraisal Negotiations Credit Approval
Legal Documentation IFC Board Approval
38
Feb10 Financial Closure Commitment and First Disbursement
Credentials in Infrastructure IFC in the Water, Utilities and Gas Sectors
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Utilities and Water Portfolio: $1.1 billion As of December 31, 2010
By Region
By Product Africa, 12%
Guarantee, 11% Quasi-Loan, 5%
MENA, 5%
Loan, 54% Equity, 29%
Latin America, 21%
Southern Europe/Cent ral Asia, 19%
East Asia, 16%
South Asia, 27%
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Investments in the Water sector in the Middle East, Northern Africa and Asia China
Beijing Sound $10,000,000 Equity Financing
Shareholder July 2006 China
Asia Environment $15,000,000 Loan Project Financing
Madagascar
Africa Region
MENA Region
Metito $31,100,000 Equity and Loan Financing
Veolia AMI IFC Total US$79.7 million Equity / Guarantee
Sandandrano Water InfraV-Sandandra IFC Total US$2.5 million QE
Lender November 2007
January 2009
Philippines
June 2006
India
India Shareholder and Lender September 2007
Ramky
MahIndra
$14,999,000 Equity Financing
$10,000,000 Equity Financing
Manila Water $105,585,000 Equity and Loan Financing
Shareholder and Lender 2003/2004/2006 Shareholder June 2005
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Shareholder June 2001
IFC in the Renewable Energy Sector
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Addressing Climate Change is one of IFC’s 5 Strategic Priorities • IFC has committed to expand Renewable Energy and Energy Efficiency investments threefold (3x) to over US$3bn in FY09-11 • IFC is piloting shadow pricing analysis to incorporate climate change considerations into all investments • IFC is developing its response to support its clients in their efforts at adapting to climate change
In the electricity sector, this requires a balanced approach Maximizing access to energy through private sector development of power generation and transmission
while Minimizing GHG emissions generated to Maximize long-term development impact
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PRIORITIZATION
IFC’s Power Generation Investments are Prioritized Accordingly 1.
PROMOTE RENEWABLE GENERATION with direct equity/debt, financial intermediaries, integrated carbon finance, and advisory services.
2.
PROMOTE USE OF LESS CARBON INTENSIVE FOSSIL FUELS (gas): finance infrastructure (terminals ,T&D) and efficient generation.
3.
IMPROVE EFFICIENCY OF INSTALLED GENERATION BASE
4.
PROMOTE HIGH EFFICIENCY USE OF COAL IN GREENFIELD PROJECTS (facilities in top quartile of country’s generation efficiency): Super Critical, Ultra-Super Critical & IGCC where scale allows In all cases, verify proposed technology is most appropriate taking into account fuel availability, economic factors, and GHG considerations
5.
FINANCE OIL POWER PLANTS WHERE IT IS THE ONLY OPTION: small countries dependent on import, remote communities, emergency situations
44
IFC has supported 2,154MW of Hydroelectric Capacity Building 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Project Aguas Zarcas Hidromaule Macal Pamir IHDC Bothe Koshi Karacaoren II El Canada Khimti Khola Zhongda Aconcagua Gilman Amorin La Confluencia La Higuera Allain Duahngan Bujagali Magat Pangue Total
MW 11 20 25 28 34 36 37 43 60 78 80 140 150 160 192 250 360 450 2,154
Country Costa Rica Chile Belize Tajikistan India Nepal Turkey Guatemala Nepal China Chile Brazil Chile Chile India Uganda Phillippines Chile
Sponsor Grupo Matamoro Empresa Austral Andina - Sorgent-e Dominion IPS DL Hydro Power Private Limited SNPower Kepez Elektrik Enel SNPower Zhongda Yanjin Power Generation Groupo Mate (Colbun) Belgo Mineira - Cemig Pacific Hydro - SNPower Pacific Hydro - SNPower Son Bhilwara Energy Limited - SNPower Sithe-IPS SNPower - Aboitiz Endesa
Impact: Close to 8 million of CO2 less in the air each year 45
And There is Plenty of Opportunity for more… World Hydro Resource by Continent
Source: ESHA – 5th Thematic Workshop on Small Hydropower. June 2005.
46
And IFC has a Strong and Differing Role Supporting each Renewable Technology
IFC Role & Comp. Adv
Characteristics
Hydro • Established and cost competitive technology • Large hydros have long development time • Dams offer baseload • Potential for local E&S issues
Wind
Biomass
Solar
• Established • Technology risk • technology varies with fuel • Economics very type site specific • Long-term access • • Variable to low cost fuel generation essential • Dependent on • Opportunities for suitable co-firing and co- • regulatory generation support
• Taking • Supporting construction risk projects in new • Providing longmarkets & new tenors to match regulations asset life • Structuring to • Innovative support bundling for small intermittent hydros generation & • Ensuring best merchant risk practice E&S • Supporting supply chain expansion to reduce costs
• Structuring fuel supply agreements to enable project finance • Understanding technology risk
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Geo
PV still expensive • Established and but costs cost competitive declining quickly baseload CSP w/ storage technology offers potential • High exploration for low cost base risks and long load lead times to Potential for grid develop steam and distributed fields generation
EE • Profitable opportunities exist in generation, T&D and end use • Opportunities can be diffuse and require identification and aggregation
• Supporting • Early stage equity • Identifying and supply chain and incorporating EE expansion to concessionary opportunities in reduce costs funding to share all projects • Supporting exploration risk • Coordinating projects in new • Sector expertise concessionary markets and new and innovative support to identify regulatory structuring to and package regimes enable project opportunities for • Coordinating financing clients concessionary funding to buy down costs
IFC InfraVentures IFC Global Infrastructure Project Development Fund January 2013
Great need for bankable infrastructure projects in IDA countries Estimated Annual IDA Infrastructure Investment Needs (2008-2015) (In US$ Billions) 350
Estimated Annual IDA Infrastructure Investment Needs (2008-2015) (% of GDP) 14%
12.5%
$300 bn
300
12%
250
10%
200
8%
150
6%
100
4%
50
2%
0
0% Transport
Telecom
Electricity
WSW *
Total
Transport
Telecom
Electricity
WSW *
IDA countries need over $300 billion of infrastructure investment annually through 2015
This represents 12.5% of their GDP, a vast sum
Consequently, private investment is essential to fill the gap
Total
* WSW: Waste, Sanitation and Wastewater Source: Tito Yepes and World Bank staff estimates . Estimates for low income countries used as a proxy for IDA countries.
49
Private sector investment in infrastructure in developing countries lags the share in developed countries Percentage of private sector investment in infrastructure 90% 80% 70% 60% 50% 40% % private
30% 20% 10%
0% UK
Russia
USA
India
Emerging Africa Asia (including China)
Africa excluding telecoms
Note: represents announced investment plans Source: IFC analysis
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IFC InfraVentures: objectives, structure and working
IFC InfraVentures is a global infrastructure project development fund
$100 million fund with five-year fund life
Mandate to invest in infrastructure projects in IDA borrowing countries*
For each project, IFC InfraVentures can fund up to US$ 4 million of project development expenses at an early stage. Typically, this would be 20-30% of the early-stage financing required to bring the project to financial close. •
In selected situations, IFC InfraVentures may take a larger stake or even lead project development as a “surrogate” sponsor
In return, IFC InfraVentures will take a stake in the equity of the project at financial close •
This is not grant funding
•
Additional debt and equity to fund construction could come from other parts of IFC’s balance sheet (would be subject of a separate agreement)
Fund staff work proactively as co-developers of the project, alongside the lead sponsor. Dedicated, experienced senior professionals are deployed * For a list of IDA borrowing countries, see http://www.worldbank.org/ida/borrowing-countries.html 51
IFC InfraVentures: project eligibility criteria
Must be a PPP or private infrastructure project in an IDA country/region
Must be at early stages of development
Type of projects include : • Sponsor has agreement with Government • Projects being tendered by the Government • Projects not requiring contract with Government
• “Post-conflict country” initiatives • Projects in need of a surrogate sponsor at the initial stages
IFC InfraVentures seeks to invest in projects that could reach financial close within a few years
Project must meet IFC’s Additionality guidelines
Must have high development impact /powerful demonstration effect
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What activities can IFC InfraVentures fund and support?
IFC InfraVentures can invest in a project at a very early stage
Funding project and prototype feasibility studies and pilot tests
Funding economic, social, technical and environmental studies
Managing relationships with public and private stakeholders such as Governments, NGOs, etc.
Financial modeling
Negotiating financial and legal terms
Obtaining required permits
Negotiating project documents
Selecting and supervising project participants
Sourcing project’s equity and debt financing •
By getting involved early, IFC staff can help structure the project so that the risk is reduced and it is made bankable
•
IFC InfraVentures’ participation at an early stage increases the likelihood that project finance banks and equity investors will later invest in the project 53
Value added by IFC InfraVentures during project development
IFC’s brand and reputation in the market
Convening power of the World Bank Group
IFC’s access to all World Bank Group instruments and services
IFC senior staff depth and breadth of experience
Track record of “hands-on” project development with sponsors in most challenging environments
IFC’s involvement reassures all project participants
IFC’s global presence and knowledge of local environments
IFC and the World Bank manage a number of Trust Funds and grants on behalf of donors (e.g., for renewable energy). Some of these can be used to fund external consultants and studies
Fund is bridging the critical gap in early-stage financing for infrastructure projects, and actively works to bring projects to financial close
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Highlights of selected IFC InfraVentures projects Country
Project
Secor
IFC InfraVentures commitment (US$ M)
Description
Bangladesh
WaterHealth International
Water
$0.4
Investment in pilot project to set up 50 community water systems in rural Bangladesh. If concept is viable, project will be scaled up
Djibouti
REI Djibouti
Power
$4.0
Investment to build 50 MW geothermal plant, 80 km from Djibouti City
Georgia
Adjaristsqali River
Power
$2.6
Investment to develop cascade of hydro projects for 291 MW on Adjaristsqali River in Adjara. Sponsored by Clean Energy Invest (Norway)
Haiti
Dlo Haiti
Water
$0.8
Investment to develop pilot project to set up 40 community water systems in Haiti. If concept is viable, project would be scaled up to 200-300 kiosks, and could serve 5-8% of Haiti’s population.
Indonesia
REI Indonesia
Power
$4.0
Investment to build two 50 MW geothermal power plants in Benkulu province (South Sumatra) and in Kotamobagu field (North Sulawesi)
Kenya
Premier Gas
LPG
$2.0
Investment to set up innovative supply and distribution system for the sale of LPG to the Base of the Pyramid customers in urban and peri-urban Kenya. Project will reduce upfront cost for switching from kerosene/ charcoal to LPG; and reduce lumpiness” of LPG purchases by setting up Universal Filling Machines located close to the customer where a customer can complete a “partial refill” of a cylinder
Kyrgyzstan
Kalininskaya
Power
$0.6
Investment to rehabilitate two existing small HPPs and the construction of four other small HPPs in the Kyrgyz Republic
Lao
Kowepo
Power
$2.0
Investment to develop a series of greenfield hydropower projects in Lao PDR, with individual sizes of up to 100 MW, for an aggregate of 150 MW, for domestic consumption
Madagascar
Sandandranao
Water
$2.5
Investment in a private water company that will improve access to potable water for 215,000 underserved people in poor neighborhoods
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Highlights of selected IFC InfraVentures projects Country
Project
Sector
IFC InfraVentures commitment (US$ M)
Description
Mali
Kenie Hydro
Power
$2.0
Investment to develop 35-50 MW hydro project via PPP. InfraVentures will be surrogate sponsor until government selects strategic partner. World Bank providing concessional financing and political/regulatory risk mitigation
Moldova
Renovatio Wind
Power
$3.0
Investment to develop a portfolio of four wind farms totaling a capacity of up to 350 MW in the southern part of Moldova
Nepal
Upper Trishuli 1
Power
$3.0
Investment with Korea Southeast Power Co. to develop 216 MW hydropower plant. $450m project will increase Nepalâ&#x20AC;&#x2122;s electricity supply by 50%.
Nicaragua
El Salto
Power
$2.0
Investment to build one of the first private large scale hydro power plants in the last 30 years in the Northeast of the country
Pakistan
Mashal
Gas
$3.0
Investment to build LNG reception, storage and re-gasification terminal facilities in Karachi
Rwanda
Lake Kivu
Power
$4.0
Investment for the development, construction and operation of a natural gas processing plant and a gas-fired plant
Tajikistan
Lake Sarez
Power
$2.0
Investment to build hydro power plant in southeastern part of country
Tanzania
Singida Wind
Power
$4.0
Investment with Aldwych and Six Telecoms to develop 100 MW wind farm. Would be Tanzaniaâ&#x20AC;&#x2122;s first wind IPP. Diversifies electricity supply away from hydro, which is critical during dry season.
Vietnam
SN Power
Power
$1.0
Developing and acquiring 1000 MW of renewable energy assets in Vietnam over 10 years
West & Central Africa
Scatec Solar
Power
$1.5
Investment to develop greenfield solar projects in West & Central Africa with initial target countries in Benin, Burkina Faso, Cameroon, Niger and Togo
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David Fulton Head, USA and Canada Relationship Management International Finance Corporation dfulton@ifc.org
57