II. Boosting Economic Growth

Various regional infrastructure development initiatives for Africa have been taken up. Through the leadership of the AU and NEPAD, the 15th Ordinary Session of the African Union in July 2010 agreed to integrate several existing initiatives into the Programme for Infrastructure Development in Africa (PIDA), and endorsed the framework until the end of 2011. Currently, detailed investigations are underway in order to integrate national projects into regional and continental projects and to secure funding, targeting energy, water, transport, and ICT. In order to ensure consistency with PIDA, the Infrastructure Consortium for Africa (ICA), a platform for donors including Japan, is currently formulating a strategic business plan and moving ahead with donor coordination in individual projects within sectoral working groups.

TheYAP target for grant aid and technical cooperation for thissectorwasalreadyattainedin2009.However,moreassistanceisrequiredinsomesub-sectors,especiallytheirrigationsector.

The Status of Japanese Assistance – April 2008 - March 2011 (provisional)

(100 million yen)

Total amount of committed ODA projects in the infrastructure sector (April 2008-March 2011)

Transport PowerWater &

SanitationIrrigation

Loans 386.85 1,225.39 224.99 131.78

Grant Aid & Tech. Coop. 533.28 211.33 412.86 123.92

Improved infrastructure is central to increased competitiveness and productivity, as well as enhanced livelihoods. Regional infrastructure, such as transport corridors and power pools, offers tremendous

benefi ts. Given the costs involved, much greater investment from the private sector will be needed, including through public private partnerships.

In June 2010, the Government of Japan announced a “New Growth Strategy” and set promotion of “Development of Integrated Infrastructure Systems” as one of its national strategic projects. The government is strengthening support systems to enhance public-private partnerships in the infrastructure sector.

Japan’sfinancialandtechnicalsupportisconcentratedonselectedimportantcorridorsineachregion,focusingprimarilyonroadproj-ectsbutalsoincludingports,bridges,urbantransportandrailways.ThemaponthenextpageindicatesJapan’scooperationsince2008,includingnewprojectsfor2010.Japanintendstocontributetothedevelopmentofregionaltransportinfrastructurebasedonregionalpriorityprojects.Forthatpurpose,Japanintendstofurtherstrength-enitscooperationwithAU/NEPADandRECs.

Japanannouncedtheexpansionof“OneStopBorderPosts”(OSBPs)to14locationstofacilitatesmoothcross-borderprocedures.Sup-porthasalreadybeenprovidedfortenlocationsandpreparationsareunderwayfortheremainingfour.

JapanconsidersinfrastructureasanessentialfoundationtoachievetheMDGs. Inadditionto its roleof fosteringefforts foreconomic

growthinthecountryandregion,infrastructureservicesensuretherightofpeopletosurviveandliveasecureandhealthylife.Japanisaimingatachievinginclusiveandequitablecommunityempower-ment through development of regional transport infrastructure,payingmaximumattentiontosupportsystemsforincreasedfoodproductionandaccesstosocialservices.(ex.NacalaCorridorDevel-opmentprogrammeinMozambique)

Regional Transport Infrastructure

1. Infrastructure

Example of Japan’s recent assistance for the OSBP – at the border of Rusumo (Tanzania-Rwanda border)

OSBP at the Rusumo Border(rendering) (Photo: JICA)

(100 million yen)

7

Japan’s cooperation for regional transport infrastructure

1

1

2

5

7

8

9

3

3

4

4

6

TRANS-AFRICAN HIGHWAYSCairo—Dakar

Algiers—Lagos

Tripoli—Windhoek—(Capetown)

Cairo—Gaborone—(Capetown)

Dakar—Ndjamena

Ndjamena—Djibouti

Dakar—Lagos

Lagos—Mombasa

Beira—Lobito

12

5

789

34

6pavedunpaved

kilometres

0 1000

Rabat

Algiers Tunis

Tripoli

Namanga*

Rusmo**

Chirundu*

Mamuno/ Trans

Karahari**

Nairobi

Dodoma

Capetown

Gaborone

BrazzavilleKinshasa

Libreville

Bangui

YaoundéLoméAccra

NiameyOuagadougou

Monrovia

FreetownConakry

Banjul

Nouakchott

Kampara

Djibouti

Malaba*Taveta*Lungalunga/Horohoro*

Busia*

Isebania/Sirari*

Mutukula*

Tunisia

N’DJAMENABissau Bamako

KHARTOUM

ADDIS ABABA

MOMBASA

MTWARA

NACALALUSAKA

NAMIBE

LOBITO

LUANDA

DAKAR

AGADIR

LAGOS

WALVIS BAY

WINDHOEK

DURBAN

JOHANNESBURG

DAR ES SALAAM

CAIRO

HARARE

BEIRA

*E/NsignedinFY2008-2009(Apr.2008–Mar.2010)**E/NsignedinFY2010(Apr.2010–Mar.2011)

<OSBP>Construction&Tec.Coop.

Loan

GrantAid

TechnicalCooperation

JBICsignedabuyer’screditagreementtotalingupto7.9billionyenwiththeNational Authority for Tunnels (NAT) in Egypt. The loan will finance theprocurementbyNATofafleetofrollingstockfromMitsubishiCorporationforthefirstphaseofLine3oftheGreaterCairoMetroNetwork,whichconnectsCairocitywithCairoInternationalAirport.TherollingstocktobedeliveredwillbeproducedmainlybytheKinkiSharyoCo.,Ltd.,andToshibaCorporation.JBIC

thus supported the exports of Japanese firms.Thismetroproject,whichwillconstructapublicmass transit rail connecting thecenterofCairowith suburban districts, is expected to helpalleviate traffic congestion and enhanceenvironmentalperformanceinCairo.

Inrecentyears,Africa’sRegionalEconomicCommunities(RECs)havebeenpromotingregionalinfrastructureprojectstostimulateintrare-gionaltrade,andtherehavealsobeencasesoftheRECsconductingfeasibilitystudiesofregionalprojects.JICAiscurrentlydispatchingex-pertstoNEPAD,theEAC,theICASecretariatandtheWestAfricanEco-

nomicandMonetaryUnion(UEMOA)andintendstodispatchanex-perttotheSouthernAfricanDevelopmentCommunity(SADC)withinthisfiscalyear.TheutilisationofOtherOfficialFlows(OOF)isprogress-ingintheinfrastructuresectortopromotepublic-privatepartnershipthatwillfacilitatebusinessactivities.(SeeFigures)

Involvement of Regional Institutions and Promotion of Public-Private Partnership

Metro Construction Project in Cairo (signed on September 2, 2010)

Examples of Infrastructure Projects of Japanese Private Companies: Development of Electric Power Infrastructure by VISCAS

VISCASCorporation*isjustcompletingtheESKOM’sconstructionprojectofa765kV overhead transmission line from Hydrasubstation to the Perseus substation (routelength:155km).Thisprojectcoversapartofaplandrafted by the South African government toconstruct an extra high voltage powertransmission network between Johannesburg

andCapeTownwithtotallengthof1500kmtocopewiththechronicpowershortageinthecountry.VISCAShasalreadycompletedtwopreviousprojectsofthesamenetwork,with250km(Mercury-Perseus)and255km(Hydra-Gamma).VISCASisalsoundertakingtheMCA’sprojecttobuildahighvoltagesubmarinetransmission line (132 kV, 100MW, route length: 38km) to Zanzibar (UngujaIsland)fromUbungopowerstationinDaresSalaaminTanzania.*VISCAS is a joint corporation of The Furukawa Electric Co., Ltd. and Fujikura Ltd.

(image, Photo: Kinki Sharyo Co., Ltd.)

(Photo: VISCAS)

8

Cairo-Dakar CorridorMediterraneanRoadConstruction( )(Morocco,8.5billionyen)*

UpgradingofAtiaku-NimuleRoad(Uganda,3.4billionyen)*

RoadSectorSupport(Tanzania,7.1billionyen)*

Nacala CorridorNampula-CuambaRoadUpgrading(Mozambique,6.0billionyen)*

Mtwara CorridorMasasi-MangakaRoadRehabilitation(Tanzania,3.0billionyen)*

WideningoftheNewBagamoyoRoad(Tanzania,4.9billionyen)**

ConstructionofAccessRoadintheSouthernAreaoftheCapital(Madagascar,0.8billionyen)*

Lagos-Mombasa CorridorNileRiverBridgeConstructionProject(Uganda,9.2billionyen)**

Dakar-N’djamena CorridorConstructionofBridgesontheMali/SenegalSouthCorridor(Mali,Senegal,3.8billionyen)*

RehabilitationofPoidsLourdsAvenueinKinshasa(Secondphase)(DRC,3.4billionyen)**

Taakoradi CorridorImprovementoftheNationalRoadRoute8(Ghana,8.8billionyen)*

Namibe CorridorRehabilitationofPortofNamibe(Angola,3.9billionyen)*

Dal es Salaam CorridorReplacementofSouthRukuruBridgeontheMainRoadM001(Malawi,0.9billionyen)*

ImprovementofBlantyreCityRoad(Malawi,1.4billionyen)*

ImprovementofBlantyreCityRoad(Secondphase)(Malawi,0.9billionyen)**

ImprovementofLivingstoneCityRoad(Zambia,1billionyen)*

ImprovementofNdolaandKitweCityRoad(Zambia,2.7billionyen)*

RehabilitationofPoidsLourdsAvenueinKinshasa(DRC,1.8billionyen)*

ReinforcementoftheCapacityofMarineTransportinsidetheGulfofTadjoura(Djibouti,0.9billionyen)*

ConstructionofNairobiWesternRingRoads(Kenya,2.5billionyen)**

PublicTransportRehabilitation(Burundi,1.1billionyen)*

ConstructionofRusumoInternationalBridgeandOneStopBorderPostFacilities(DetailedDesign)(Tanzania,Rwanda,80millionyen)**

RehabilitationofRoadsandInfrastructuresforBujumburaCity(Burundi,2.7billionyen)**

OperationandMaintenanceofTrunkRoad:GohaTshion–DejenacrossAbayGorge(EquipmentSupply)(Ethiopia,1billionyen)**

ReconstructionofAwashBridgeonA1TrunkRoad(DetailedDesign)(Ethiopia,45millionyen)**

Lagos-Mombasa CorridorTransportFacilitationfortheBamenda-Mamfe-Ekok/Mfum-Abakaliki-EnuguCorridor(Cameroon,4.5billionyen)*

COAST

Tororo

400kV Planned transmission line220kV Existing transmission line220kV Planned transmission line132kV Existing transmission lineThermal & Geothermal power plantHydraulic power plantElectric power substationMajor city

★

Legend

Mombasa

Nairobi

Uganda

LessosProject Site

Kisumu

Olkaria

Tanzania

Kenya

★

★

Nairobi

Lichinga

Mandimba

Olkaria

Cuamba

Ile

Nampula

Montepuez

Nacala

TANZANIA

Sofala

InhambaneGaza

ZIMBABWE

SOUTHAFRICA

SWAZILAND

MOZAMBIQUE

ZAMBIA

Maputo

DelgadoMALAWI

Zambezia

Nampula

Niassa

Tete

Manica

Cabo

【Survey / Loan】RoadImprovementPlanandOSBPonNacalaCorridor(Cuamba–Mandimba)

【Grant Aid】TheProjectfortheConstructionoftheCuambaTeacherTrainingCenter(2007.06E/Nsigned,998millionJPY)

【Loan】Nampula-Cuamba Road Upgrading Project (2010.03E/Nsigned,5,978millionJPY)

COAST

Tororo

400kV Planned transmission line220kV Existing transmission line220kV Planned transmission line132kV Existing transmission lineThermal & Geothermal power plantHydraulic power plantElectric power substationMajor city

★

Legend

Mombasa

Nairobi

Uganda

LessosProject Site

Kisumu

Olkaria

Tanzania

Kenya

★

★

【Agriculture Development Program (ProSAVANA)】

Example of a major assistance project carried out by Japan in recent years:

“Olkaria-Lessos-Kisumu Transmission Lines Construction Project”Japanhasagreedtoprovide12.41billionyeninODAloanstoKenyainDecember2010tosupporttheconstructionofpowertransmissionlinesfromtheOlkariageothermalfieldtoKisumu(spanningroughly290km)andtheexpansionoftheelectricpowerstation.Inaddition,thisprojectaimstobringaboutstableelectricalpowersupply intheEastAfricanregion through coordination with ODA loan projects currently underimplementationinneighbouringUganda.

Incollaborationwithotherpartners,Japanissupportingpowerpoolsineachregion.

Regional Power Infrastructure

Efforts by Other TICAD Partners Regional infrastructure is a priority of theWBG, which is workingclosely with other partners to develop a more strategic and har-monisedapproachtoregionalinfrastructuredevelopment.

IDA/IBRD investments in infrastructure totaled $7.5 billion inFY2010,with$3.2billionofIDA–thesameamountasFY2009–pro-grammedtoinfrastructureprojects.Anincreasingshareisfundingregionalprojectstoaddress“missinglinks”inthecontinent’sinfra-

structure.IFChasalsorampedupinfrastructureinvestments.

IBRD/IDAlendingcommitmentsforenergyreached$4.7billioninFY2010,complementedbyincreasedadvisoryservicesandknowl-edgesharingtoimprovetheefficiencyandcapacityofkeyinstitu-tions.TheBank,IFCandMIGAareworkingcloselytogethertomaxi-mizeenergysectorsupport.

Integrated regional development in Nacala Corridor, Mozambique

(Photos: JICA)

9

InterconnectionofElectricGridsofNileEquatorialLakesCountries(NELSAP)GovernmentofJapan(yenLoan):Bujagari-Tororo(Ugandapart)(signedin2010,scheduledcompletionin2014)AfDB:Kenyapart

400kVMombasaNairobitransmissionlineFundbyAfDBandAFD(signedin2009,scheduledcompletionin2014)

【Survey / Loan】RoadImprovementPlanonNacalaCorridor(Mandimba-Lichinga) 【Loan】

Montepuez-LichingaRoadProject(2007.03E/Nsigned,3,282millionJPY)

PreparatorySurveyofJapan-Brazil-MozambiqueTripartiteCooperationonTropicalSavannaAgricultureDevelopment

【Survey / Loan】NacalaPortDevelopmentProject

【Survey / Grant Aid】TheProjectforTrainingHealthWorkersinNampula

【T/C】AgriculturalResearchCapacityDevelopmentProject

CandidateApproved/On-going/Completed

【Survey / Grant Aid】TheProjectforImprovementof20SecondarySchoolsintheNorthernRegion

【Survey / Grant Aid】TheProjectforConstrctionofBridgesoftheRoadbetweenIleandCuamba 【Survey / Grant Aid】

TheProjectforTrainingPrimaryTeachersinNampula