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INPUT 2006 Regional Investment Conferences and Business Meetings
Water, Energy and Transport - East Africa and Indian Ocean
Addis Ababa – 7 th to 9 th June 2006
Sectoral profiles and business opportunities in
East African and Indian Ocean countries
April - May 2006
PRO €INVEST (www.proinvest-eu.org) is a programme of the Group of ACP States and the European Commission for the promotion of investment and technology transfer to the ACP countries and operates through the strengthening of ACP intermediary and professional organisations and support to the development of company partnerships. Its management has been entrusted to a Management Unit within the Centre for the Development of Enterprise (CDE) under the supervision of the EuropeAid Office of the European Commission.
The Centre for the Development of Enterprise (CDE, www.cde.int) is an institution of the ACP Group of States and the European Union in the framework of the Cotonou Agreement. It forms part of the general system of support the European Commission created for promoting the private sector and thus helping to combat poverty. The CDE provides effective support to assist creation, expansion, diversification and restructuring of ACP enterprises with a perspective of profitability and development impact and strengthening the capacity of intermediary organisations .
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The present document has been prepared, on the basis of public information, by the Consortium led by Bernard Krief Consultants in association with STEM-VCR, ConfServizi International and Sinergie
For any contact related to the content of this report: [email protected]
The views and opinions expressed herein do not necessarily reflect those of CDE - Pro €Invest.
CDE - Pro €Invest does not guarantee the accuracy of the data included in this document, nor does it accept the responsibility for any consequence of their use. Reproduction of this document, in whole or in part, in whatever form, is authorised except for commercial purposes and provided credit is given to the source (CDE - Pro €Invest- 2004©). »
Table of contents
OBJECTIVE OF THE STUDY...... 2
Reminder of the INPUT initiative (CDE - Pro €Invest) ...... 2 Specific purposes of the study ...... 3
EXECUTIVE SUMMARY ...... 4
TRANSPORT SECTOR IN EAIO...... 6
MARITIME TRANSPORT AND PORT MANAGEMENT ...... 8 Maritime lines: situation and main players ...... 8 Major ports: situation and main players...... 9 Regional development programmes and expected business opportunities ...... 10 RAILWAY TRANSPORTATION ...... 12 Sector situation and main players...... 12 Regional development programmes and expected business opportunities ...... 13 LAND TRANSPORTATION ...... 15 Sector situation and main players...... 15 Regional development programmes and expected business opportunities ...... 18 AIRLINE TRANSPORTATION AND AIRPORT MANAGEMENT ...... 21 Sector situation and main players...... 21 Regional development programmes and expected business opportunities ...... 22
ENERGY SECTOR...... 24
POWER PRODUCTION AND DISTRIBUTION ...... 24 Sector situation and main players...... 24 Regional development programmes and expected business opportunities ...... 30
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INPUT 2006 Regional Investment Conference Water, Energy & Transports www.input-proinvest-eu.org East Africa and Indian Ocean www.proinvest-eu.org www.cde.int
WATER SECTOR...... 37
WATER AND WASTEWATER SERVICES ...... 37 Sector situation and main players...... 37 Regional development programmes and expected business opportunities ...... 41
BUSINESS OPPORTUNITIES IN RELATED INDUSTRIES...... 45
Engineering and construction...... 45 Manufacturing of industry components/ services, technologies and product ...... 46
ANNEXES ...... 48
LIST OF PPP S IN EA&IO IN THE WATER AND POWER SECTORS ...... 49 LIST OF PPP S IN EA&IO IN THE TRANSPORT SECTOR ...... 50 PIPELINE OF THE WORLD BANK IN THE WATER , POWER AND TRANSPORT SECTORS FOR EA&IO ...... 51 PIPELINE OF THE AFRICAN DEVELOPMENT BANK IN THE WATER , POWER AND TRANSPORT SECTORS FOR EA&IO...... 54
List of Tables
TAB . 1 – SELECTED TRANSPORT CORRIDORS FOR LANDLOCKED COUNTRIES IN EAIO...... 17 TAB . 2 - TOTAL NET ELECTRICITY CONSUMPTION , 1980-2002 ...... 29 TAB . 3 - TOTAL NET ELECTRICITY GENERATION BY TYPE , 2002...... 29 TAB . 4 - WATER AND SANITATION SERVICE COVERAGE IN EAIO, 2002...... 38 TAB . 5 - PERFORMANCE INDICATORS FOR EAIO WATER SERVICES ...... 39
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List of main acronyms
ACP Africa, Caribbean and Pacific AU African Union BOT Build – Operate - Transfer BOOT Build – Own – Operate - Transfer CDE Centre for the Development of Enterprise COMESA Common Market for Eastern and Southern Africa CWA Central & West Africa DBO Design – Build - Operate EAC East African Community EAIO East Africa & Indian Ocean EAPP Eastern African Power Pool EDF European Development Fund IGAD Inter-Governmental Authority on Development – Covers the Horn of Africa INPUT INvestment Conferences in Public Utilities and Transport NEPAD New Partnership for Africa’s Development PPP Public – Private Partnerships SAPP Southern Africa Power Pool SSATP Sub Saharan Africa Transport Policy Program
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OBJECTIVE OF THE STUDY
REMINDER OF THE INPUT INITIATIVE (CDE - PRO €INVEST )
Pro €Invest 1 is an EU – ACP (Africa, Caribbean and Pacific) partnership programme for the promotion of investment and technology flows to ACP countries.
Pro €Invest has launched, in 2005, a new initiative named INPUT ( IN vestment Conferences in Public Utilities and Transport ) which focuses its efforts on:
Three specific sectors: Water, Energy (from fossil and renewable sources) and Transports ; Two African Regions: o Central & West Africa (CWA), which includes 24 countries 2 o East Africa & Indian Ocean (EAIO), which includes 14 countries 3.
The main objectives of the INPUT initiative are: To gather the main African, EU and international stakeholders of the water, energy and transport sectors in Regional Investment Conferences , in order to facilitate common understanding, extensive networking and pre-arranged business meetings, targeted to identify investment, cooperation and business opportunities; To provide tailor-made technical assistance to the most relevant investment, cooperation and business opportunities identified during the Regional Investment Conferences, to facilitate and speed-up their concrete implementation.
1 Pro €Invest is an EU - ACP (Africa, Caribbean and Pacific) States partnership programme developed and undertaken by the European Commission on behalf of the ACP countries. Its management has been entrusted to a Management Unit within the Centre for the Development of Enterprise (CDE) under the supervision of the EuropeAid Office of the European Commission
2 Benin, Burkina Faso, Cameroon, Cape Verde, Central Africa Rep., Chad, Congo, DR Congo, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, Sao Tome & Principe, Senegal, Sierra Leone and Togo
3 Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Mauritius, Madagascar, Rwanda, Seychelles, Somalia, Sudan, Tanzania and Uganda
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The first Regional Investment Conference , which took place from 30 th November to 2 nd December 2005 in Accra (Ghana), mainly targeted the CWA countries. The Accra Conference attracted 350 participants from 42 countries (10 European countries, 20 from West and Central Africa and 12 third countries) and featured over 500 formal scheduled business meetings, numerous informal contacts, 11 sectoral and thematic round tables, and in excess of 140 expressions of intent to establish further partnership agreements between African and European firms, professional organisations and institutions. Currently, a pipeline of more than 70 projects are under preparation and/or discussion between the projects’ sponsors and Pro €Invest.
The second Regional Investment Conference , to be held from 7 th to 9 th June 2006 in Addis Ababa is planned to gather 250 to 300 high level participants from the Region (key policy stakeholders, entrepreneurs and professional organisations), the EU (entrepreneurs, cooperation and financial bodies, etc.) and International Institutions.
SPECIFIC PURPOSES OF THE STUDY
In the framework of the preparation of the INPUT 2006 Regional Investment Conference, the specific purposes of the report are to provide registered and potential participants with: a brief description of the water, power and transport sectors in terms of current situation and main players in EAIO; a summary presentation of the expected industry trends and regional development programmes; a synthesis of the foreseeable business opportunities, for each sub-sector.
The industry and business openings overview is performed at the regional level with focus on main issues by country. The three sectors are assessed separately in the report: transportation sector is considered in section 1 taking into account the key subsectors: Maritime transport, Railways transport, Land transport, Air transport power production including renewable energies and power distribution is examined in section 2 water and wastewater services are dealt with in section 3
A general discussion is also offered concerning opportunities in related industries: construction, engineering and manufacturing of components and technologies.
In the appendices, some general information is provided comprising a comprehensive list of PPP 1 contracts awarded linked to the management of water, power and transport utilities and the pipeline of World Bank and African Development related projects in the region.
1 PPP: Public – Private Partnerships
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EXECUTIVE SUMMARY
The water, energy and transport sectors scenario in EAIO is setting up important investment and business openings in the next years. Sectoral revamping will entail a twofold focus:
Expanding infrastructure and rehabilitation of existing systems, to cope with service demand. This implies conventional construction contracts procured by public authorities and International Institutions as well as concession type approaches. It obviously will also bring in an interesting market for industrial components and technologies.
Optimisation of management and operations to ensure that the services provided are reliable, cost-efficient, sustainable and continuously meet health, environmental and safety standards. In the latest years international development strategy have moved the spotlight toward “soft” measures recognising that a lot can be done in the utility sector through the improved exploitation of existing infrastructure and capacities.
In this picture it can be expected that the domestic and international private sector will be critical to several respects beyond its traditional role of supplier of the public sector:
Mobilization of private capital markets coupled with expertise in cost-effective investment plan management for the building of new plants under concessions, BOT 1 and DBO 2 schemes.
Delegation of management of water services according to the different PPP 3 arrangements to improve operational, technical, commercial efficiency.
Transfer of knowledge and best practice to the public sector through technical assistance, exchange and cooperation initiatives.
Introduction of advanced technologies and solutions to enhance quality of service while containing tariffs and preserving natural resources and the environment.
A number of proposed and on-going projects are listed and briefly described as a large example of business opportunities for European operators, contractors and producers.
Among key programmes financed by the international community it shall be noticed:
The World Bank SSATP (Sub Saharan Africa Transport Policy Program), which is an international partnership to facilitate policy development and implementation in the transport sector in Sub Saharan Africa . It covers five main domains: Road Management, Rural Travel
1 BOT: Build – Operate – Transfer scheme 2 DBO: Design – Build – Operate scheme 3 PPP: Public – Private Partnerships
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and Transport, Urban Mobility Trade and Transport and Railway Restructuring and the Road Management Initiative.
The NEPAD 1 Water, Power and Transportation programmes that entails the Africa highest priority projects.
The ongoing projects funded by the EU under the 9 th EDF (European Development Fund) and previous engagements.
1 The NEPAD (New Partnership for Africa’s Development) is a programme of the African Union designed to meet its development objectives. Main actions encompasses: (a) Operationalising the African Peer Review Mechanism; (b) Facilitating and supporting implementation of the short-term regional infrastructure programmes covering Transport Energy, ICT, Water and Sanitation; (c) Facilitating implementation of the food security and agricultural development program in all sub-regions; (d) Facilitating the preparation of a coordinated African position on Market Access, debt relief and ODA reforms; (e) Monitoring and intervening as appropriate to ensure that the Millennium Development Goals in the areas of health and education are met.
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TRANSPORT SECTOR IN EAIO
The transport sector comprises a wide spectrum of businesses entailing the full range of different forwarding media, means of shipment and loading/unloading facilities.
Key sub-sectors relevant to EU - African potential cooperation are: Maritime transport / Sea freight / Ports management Air transport / Air freight / Airports management Railways transport / Railways station management Road transport.
The East African and Indian Ocean countries have a yearly growth rate estimated at 4.5%. However transportation has been recognized as a key limiting factor for Sub-Saharan Africa and is being tackled in a common effort by governments with the joint support of international organizations such as: the EU the World Bank and the UN through the Sub Saharan Africa Transport Policy Program (SSATP) the NEPAD (New Partnership for Africa’s Development) transport programme.
The Sub Saharan Africa Transport Policy Program (SSATP) is an international partnership that facilitates policy development and related capacity building in the transport sector in Sub Saharan Africa. The SSATP Program is currently engaged in the implementation of its Long-Term Development Plan 2004-2007 that is being implemented through five components: Road Management Initiative (RMI) Rural Travel and Transport Program (RTTP) Urban Mobility (UM) Trade and Transport (T&T) Railway Restructuring (RR).
The goal of the NEPAD Transport Programme is to close Africa’s gap in transport infrastructure and services, by: Reducing the costs and improving the quality of services Increasing both public and private financial investment in transport infrastructure Improving the maintenance of transport infrastructure assets Removing formal and informal barriers to the movements of goods and people Supporting regional cooperation and the integration of markets for transport services.
The NEPAD transport program has been developed along five broad themes, namely: Trade corridors without borders and barriers
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Better and safer roads to bring Africa together Competitive and seamless rail services Efficient ports and safe seas and ports Safe, secure and efficient skies and airports.
Business opportunities in transport sub-sectors relate to a number of different activities such as: Provision of shipment services for passengers and goods (maritime lines, airlines, rail transport, truck haulage, urban transport, etc.) Management services for transport infrastructure (roads, harbours, terminals, railways, storages) in the form of concessioning of facilities already existing or to be built (“green fields”) Specific logistics and passenger services in the transport operation chain (services to vessels, warehousing, loading, cargo and luggage handling, catering, towage, mooring, pilotage, passenger facilities, etc.) Provision of adapted technical assistance (training, technical/business upgrading, quality insurance, certification, computerisation, etc.) to the concerned operators, to increase good governance, performances, safety, reliability, traceability and efficiency.
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MARITIME TRANSPORT AND PORT MANAGEMENT
MARITIME LINES : SITUATION AND MAIN PLAYERS
The containerised maritime trade between Africa and EU is primarily serviced by about fifteen carriers. The market share of the national lines is very slim, ranging around 6-7% of total capacity, while the remaining is dominated by the large European leaders (Maersk Sealand / Saf Marine, CMA-CGM, etc.) offering a capacity of over 70%:
Generally, the service consists of visits to several European ports, from where the vessels straddle the coast of Africa, calling numerous ports along the way. Often the ships call as much as 10 to 20 ports. However, the world wide trend is to bigger and bigger vessels, so that maritime container carriers are moving towards less and less port calls with hub and spoke services; A hub and spoke system has not been imposing since no part in the region meets the test for a primary distribution point: o none of the existing ports is geographically central enough, given the current major trade flows, and nearly all have substantial draft limitations that prevent a substantial increase in the size of main vessels; o consequently, various lines are using Jeddah (Saudi Arabia), Salalah (Oman) or Dubai as their primary distribution point, while a more limited number of lines are coming through Regional ports such as Djibouti.
In maritime transport, the major shipping lines and operators which benefit from a wide network of agencies, companies or local partners in Africa and ensuring regular maritime calls to Africa can be listed as follows: The Maersk Line fleet (which absorbed Saf Marine and CMB) comprises more than 300 vessels with a total capacity of more than 850,000 TEU. It is the only operator providing world-wide weekly service to and from Africa. Maersk Hub in Algesiras provides also connections in all directions. Maersk are also transhipping to Southern Africa on a regular basis in Salalah (Oman). The CMA CGM group, since the acquisition in 2005 of the Delmas group to Bolloré, operates a modern fleet of about 242 vessels on over 80 major shipping routes. It has 73 new vessels on order for delivery between 2006 and 2009. Mitsui Line is a leading Japanese shipping and logistics company operating 350 vessels world-wide comprising gas tankers, general cargo and passenger vessels; The Bolloré Group’s, after selling Delmas to CMA CGM, is concentrating, in Africa, on land transport, logistic / transit activities (SDV, Saga, Transami) and railways.
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MAJOR PORTS : SITUATION AND MAIN PLAYERS
Physical port infrastructure serves as the platform on which a multitude of transport services is provided. These services can be broadly categorised into services to vessels and services to cargo.
Conditions of exploitation of the ports are more and more based on the introduction of private participation and competition. In that context: the role of the public sector in landlords’ ports is more focusing on the creation of a transparent regulatory framework to ensure fair market access and competition between private operators; Port Authority is the public counterpart for private companies who wish to get involved on a PPP basis.
At present the landlord port model, especially in large ports, is dominating with harbours under government control.
Ports represent major bottlenecks in the maritime chain. In EAIO region, some countries have already initiated a process for port concessioning as in: Kenya ports: they have been awarded to private operators; Port of Djibouti: in 2000 Dubai Ports International (now DP World) was awarded a Management Contract; Madagascar: the concession on a BOT basis is foreseen; a short list of companies has been issued recently, including Maersk, CMA-CGM, Bolloré Group, Malta Free Port, ICTSI and Hutchinson.
Among the most active international enterprises in operation and maintenance of port facilities are in EAIO: International Contenedores de Barcelona of Spain Mersey Docks and Harbour Company of UK Transnet the leading South African group in transport and logistics solutions including ports, railways and airlines A. P. Moller of Denmark (Maersk Group) Hutchison Port Holdings of Hong Kong operating in Kenya ports.
Over the past years a relevant number of PPP projects have been carried out in the sector:
Restructuring and Privatization of the Container Terminal, Tanzania . The Container Terminal (CT) of the Port of Dar es Salaam, in Tanzania, was privatised to ensure greater efficiency improvements to the users by the cost effective operations of a private operator. The THA Container Terminal handles approximately 90,000 containers per year and serves Tanzania and the neighbouring countries of Zambia, Burundi, Congo, and Uganda.
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Kenya Ports Authority Privatization and Restructuring of the government parastatal organization with about 5,000 staff responsible for the operation of all ports and inland container depots in Kenya.
Management Contract for the Container Terminal, Port of Mombasa, Kenya the Container Terminal at the Port of Mombasa, the largest port on the East coast of Africa with container terminal handling approximately 160,000 TEU 1 per year, was contracted out to Hutchison Whampoa.
REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
Infrastructure projects included in the NEPAD short term transportation programme focussing on port restructuring. o Mombasa Port, Kenya : rehabilitation of the Kipevu access road, development of new container berths, development of free trade zone at port of Mombasa, development of a cruise ship complex, second bulk grain handling facility – a non-silo bulk grain handling facility at the conventional berths along Kilindini, second sea port at Lamu, waste reception facilities to comply with the environmental regulations adopted by the International Maritime Organisation. o Djibouti Port and Addis Ababa dry Port : renovation of the container handling facilities.
Tanzania . The Rehabilitation of Malindi Wharves, Port of Zanzibar is underway thanks to the finance of the EU Commission. The projects for the port of Mtwara are linked to the Mtwara Development Corridor initiative, aimed at the creation of economic growth in a region located on portions of Tanzania, Zambia, Malawi and Mozambique. Port specific projects are as follows: expansion of the port annual capacity from the current 400,000 tons to 750,000 tons, construction of a Container Terminal, acquisition of additional port land for development of an Export Processing Zone.
Djibouti port . This port has an important role as a regional gateway and a transhipment centre, especially considering the further rehabilitation of the railways linking Djibouti to Addis Ababa. The port is run under a management contract by Dubai Port International, the international arm of the Dubai Port Authority. Under the agreement signed in 2000, Dubai Ports International (now DP World) is managing and developing the port over a period of 20 years.
1 TEU: Twenty-foot equivalent unit for containers
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In 2002 Dubai Ports International was also awarded a Management Contract for the Airport of Djibouti while, in 2005, Dubai Customs was awarded a Management Contract for the Djibouti Customs. Under a concession agreement DP World, in conjunction with Horizon Terminals Djibouti, has constructed a new Bulk Liquid Receiving and Distribution facility at Doraleh at a cost in the region of US$ 100 million. DP World will also construct and operate a new Deep Water Container Terminal at the Port of Doraleh with a capacity to handle TEU 1.5 million, which is expected to cost around US$ 300 million and commence operations before the end of 2008. Finally Jebel Ali Free Zone International (JAFZI) will construct a new Industrial and commercial Free Zone at Doraleh together with the 18 hectare site it has already created on the outskirts of Djibouti town.
Opportunities are emerging for Somalia ports. With its strategic links to the Middle East and Asia, its proximity to one of the world’s busiest shipping channels, and the protracted closure of the larger and more developed harbours of the South, trade through the northern ports of Berbera and Bossaso, has grown progressively. Berbera port has been boasting its activities thanks to its vast Ethiopian hinterland. Berbera is steadily and progressively recovering; the main export is livestock (peaking at 2.9 million head in 1997) and the main imported commodities are foodstuffs and construction materials (350,000 tons in 1998).
Comoros . The privatisation of the port activity is on track through the concessioning of the seaport of Moroni and the contracting out of port handling and of warehouses (SOCOPOTRAM - Comorian Ports and Maritime Transport Company).
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RAILWAY TRANSPORTATION
SECTOR SITUATION AND MAIN PLAYERS
Generally, development in the implementation of regional infrastructure projects in railways has been slow. Mobilization of financial resources to promote projects in this sector needs to be pursued more vigorously. Currently, it is only the EU that has earmarked financial resources for infrastructure development, as it appeared in the IGAD region 1.
Project sponsors believe that infrastructure development projects are too important and that long term investment should be done by national governments.
Concessioning is more and more a solution adopted by the countries when they want to involve foreign investors in the development of their infrastructure. It is mainly based on a partnership agreement between the government and the company concerned for certain duration (minimum 20 years). The management of the activity is transferred to the private partner company under certain conditions specified in the agreement.
At typical example of PPP has been the 25-year concession granted to Madarail 2 to operate the Northern railway network by the Government of Madagascar in July 2003. The track infrastructure (rail, bridges, buildings, etc.) remains the property of the Government while the rolling stock is owned by Madarail. The Northern Network of the Malagasy Railway consists of three lines, built between 1903- 26. They carry 94% of the rail freight and 86% of the passenger rail traffic of the country. The network is entirely single track, metric gauge with a maximum axle load of 16 tonnes.
The Chemin de Fer Djibouto-Ethiopien is under concessioning. After an international bidding process, a consortium including Comazar and Sheltam 3 has been selected for exclusive negotiations with the Ethiopian and Djibouti Authorities.
Main players already involved in the region as well as in Africa are: Bolloré Group from France; Spoornet from South Africa (one among the 9 divisions of the Transnet Group); Transurb from Belgium, subsidiary of the Belgian Railways. Some of these key players are now shareholders of Comazar (headquartered in South Africa):
1 IGAD (Inter-Governmental Authority on Development) Region includes the countries belonging to the Horn of Africa: Djibouti, Eritrea, Ethiopia, Somalia and Sudan. 2 Main Shareholders of Madarail: 51% Madarail Holding (51% Comazar and 49% Madagascar Utilities), 25% State of Madagascar and 24% Financial Institutions 3 Sheltam, from South Africa, provides its customers with maintenance services and technical support, as well as operational, construction and allied services both for rail transport and for maritime transport.
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o This company, founded in 1995 by MM Peiffer and Claes together with Transnet (Spoornet) and Transurb Consult has now, among its main shareholders: Sheltam, Transnet and Bolloré. o Comazar operates railway networks within the framework of concession agreements, railway corridors, transport on behalf of private clients and multi-modal terminals. o Main current1 operating subsidiaries include Camrail (Cameroon), Sitarail (Ivory Coast and Burkina Faso) and Madarail (Madagascar).
REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
Concession of the East African railways : The three East African railways (Kenya Railways Corporation - KRC, Tanzania Railways Corporation - TRC –and Uganda Railways Corporation - URC) are consulting on the modalities to concession the railways. KRC and URC have signed an understanding on the modalities for the concession. Objective is to concession to a single concessionaire or a consortium the operation of the railway line to Kampala for a period of 25 years.
The East Africa Trade and Transport Facilitation Project will improve railway services in Kenya and Uganda. The USD 219 million regional project (USD 120.62 million for Kenya) consists of the following components: (a) Support to East African Community (EAC) Customs Union Implementation; (b) Institutional support for Transport Facilitation; (c) Investment Support for Trade and Transport Facilitation; and (d) Support to Kenya and Uganda Railways Concessions. In particular the project entails the modernisation of railways telecommunications services between Kenya and Uganda.
The IFC (International Finance Corporation) is funding the programme for technical assessment of infrastructure and rolling stock, for the due diligence work in preparation for privatisation and /or concessioning of the railways corporations and for the upgrading of Kampala-Malaba-Mombassa railway.
Djibouti railways : The Chemin de Fer Djibouto-Ethiopien is in the process of concessioning the railway line linking the port of Djibouti to Addis Ababa in Ethiopia to Comazar (the South African – French group), including the improvement and construction of railways container terminals. The railway requires renovation in terms of track, rolling stock and management as it could attract a significant share of the transport along the Djibouti corridor.
The Government of Tanzania has contracted PriceWaterhouseCoopers to undertake a study on the privatization of the Tanzania - Zambia Railway Authority (TAZARA), with World Bank funding. It is a two country joint railway system linking the port of Dar es Salaam with
1 Comazar withdrew, in 2002, from TARC (Trans Africa Railway Corporation Tanzania Ltd – Tanzania) and the Government of DR Congo cancelled, in 1997, the concession of Sizarail, in which Comazar had a 51% stake.
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Zambia and handling freight cargo for the countries of Malawi, Zambia, Zimbabwe and Democratic Republic of Congo.
The Malawi railways is conducting a feasibility study on the development of a railway line between Chipata and Mchinji, which will extend the current line originating from Nacala to Zambia. The line will be completed with an ICD at Chipata. The distance between Mchinji and Chipata is 24 km, and construction cost is estimated at USD 30 million.
Infrastructure projects included in the NEPAD short term transportation programme focus on the rehabilitation of railways in support of concessioning: o Uganda Railways: Malaba – Kampala railway (part of 250 km), including bridges; Port Bell and Jinja wagon ferry terminals rehabilitation; Port Bell – Kampala rail section renovation. o Kenya Railways: Nakuru – Kisumu rail section rehabilitation (part of 250 km), including bridges. o Tanzania Railways: Track rehabilitation, upgrading signals telecoms for Dodoma – Tabora – Mwanza section.
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LAND TRANSPORTATION
SECTOR SITUATION AND MAIN PLAYERS
Road transport is the predominant mode for goods and passengers' movements in EAIO.
In the 1990s, most countries have deregulated the road freight sectors and now transport services are provided by a large number of individual operators, operating mainly in the domestic market and by a few major private companies which run a fleet of 50 to 200 vehicles each. The large freight companies operate mostly on international corridors.
The commercial trucking industry is organized around two main stakeholders: the freight associations/unions and the Governments. Generally Government’s regulations are weak and truck owners do not require a license to operate.
Ministries responsible for roads and transport have had historically insufficient financial and human resources to address their key activities with specific reference to road maintenance and upgrading. Worsening security has added to costs and risks. Many traditional – relatively efficient – routes have been closed by civil unrest or political differences between countries. The closure of major corridors from Beira, Nacala, and Maputo on the Indian Ocean has severely affected the economies of the region 1.
To cover security risks, most landlocked countries have had to develop multiple corridors. This implies that infrastructure is overused on some routes and underused on others and that some countries run the financial risks of building facilities that may be under exploited. Such critical situation become severe for landlocked countries to which transport corridors through other countries to the sea are vital.
A brief overview of road sector in EAIO is presented below for the main countries, according to the information gathered in the EU country analysis.
Djibouti The road system Djibouti - Addis Ababa has currently a vital importance, as 90% of cargo going to Ethiopia are using road (780 trucks per day), either the main corridor (through Kalafi) or the secondary corridor (through Galileh).
Eritrea The road density, all categories of roads combined, is estimated at 48 km of road per 1000 square km, being one of the lowest in Africa for a comparatively high motorization level for the region.
1 Africa’s major corridors link landlocked countries with the Indian Ocean ports of Beira, Dar es Salaam, Maputo, Mombassa and Nacala
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Railways operations were suspended in 1975 and do not constitute a credible alternative today, with barely 60 km in erratic use.
Ethiopia Ethiopia is one of the largest countries in Africa both in terms of land area (1.1 million km²) and population (65 million). Its geography gives transport a crucial role in facilitating development while at the same creating major obstacles to its provision since the population is widely dispersed and only 20% of Ethiopia’s land area is located within a 10 km range of an all-weather road. Recognising the critical state of the road transport sector for the country's overall socioeconomic development targets the Government launched the Road Sector Development Programme RSDP, managed by the Ethiopian Road Authority (ERA). The first five-year of the program (RSDP I), 1997-2002, was officially launched in September 1997, and has been successfully completed in June 2002. The second phase program (RSDP II) was launched in July 2002 and the program will extend up to the year 2007. The draft document of the third phase ((RSDP III, 2007-2012) has already been presented last April 2005. The successive five-year programme will continue after 2012. Current estimates show that Ethiopia needs to triple the length of its roads by 2015 to meet its economic and social needs. The major financiers of the program are the World Bank, European Commission, African Development Bank, OPEC Fund, Arab Bank for Economic Development in Africa, Saudi Fund, Nordic Development Fund; and the governments of Japan, Germany, Ireland, Sweden and U.K., together with a substantial contribution from GOE and the Road Fund.
Tanzania The Tanzania transport system comprises a road network totalling about 85,000 km; two railway systems (3,750 km) operated by the Tanzania Railways Corporation and the Tanzania-Zambia Railway Authority; major sea ports in Dar es Salaam, Zanzibar, Tanga and Mtwara and three international airports plus several major domestic ones. The road sector is by far the dominant mode of transport in Tanzania as it represents 70% of freight and 90% of passenger total in the country. The density of the road network of 96.5 m/km 2 is much lower than in other East African Community member countries. Tanzania’s road network is poor by international standards. According to recent road condition surveys, an average of only 16% of the total network is in good condition. The situation is particularly serious in rural areas. The situation is better for trunk and regional roads with around 30% in good condition (next to 60% of paved trunk roads). Inadequate allocation of resources and weak legal/institutional structures contributed to deteriorating Tanzania’s roads. The poor standard of the road network impedes mobility and access to markets and services in the country. It also leads to increased transport costs.
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In addition Tanzania’s road network is an essential outlet for a number of nearby landlocked countries. Rwanda, Burundi and, to a lesser extent, Uganda and Zambia, are dependent on Tanzania for providing stable sea access to international markets. Further, Tanzania has the potential to play a key transport role in the newly reinvigorated Eastern Africa Community. The current state of the network has become one of the main hindrances to economic growth and hence to reduction of overall poverty in Tanzania and in the East Africa region.
Sudan Since the outbreak of the civil war, no significant investment in construction or maintenance of infrastructure has taken place. The road network of the South has deteriorated massively, and a significant number of bridges, particularly those of strategic importance, have been destroyed or become impassable. The situation in the North (Somaliland and Puntland) is better, with main road links being in fairly good condition. Nevertheless, they too lack maintenance and several bridges have also been destroyed. Secondary roads are generally of very poor quality, impassable in the rainy season.
Tab. 1 – Selected transport corridors for landlocked countries 1 in EAIO
Country City Port Transit country Transport mode Distance (km)
Ethiopia Addis- Assab Eritrea Road 842 Ababa Masawa Eritrea Road 1147 Djibouti Djibouti Rail 2 883 Djibouti (Kalafi) Road 900 Djibouti (Galileh) Road 800 Mombasa Kenya Road 1974 Rwanda Kigali Dar-es Salaam Tanzania Road 1530 Water/ rail 1530 Dar-es-Salaam Tanzania/ Burundi Road/ water/rail 1706
Mombasa Uganda/ Kenya Road 1740 Road/rail (not used 1925 since 1990) Uganda Kampala Mombasa Kenya Road 1149 Rail 1336 Pipeline (Mombasa - 349 Kisimu) Dar-es Salaam Rail/water/road 1742
Dar-es Salaam Road (via Nairobi/ 1589 Arusha)
1 Source: SSATP/W.B. « La problématique de la gestion intégrée des corridors en Afrique subsaharienne » with integration concerning the Addis Ababa – Djibouti corridors 2 This railway is under concessioning – Presently, due to the current technical conditions, 90% of cargo travels by road.
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REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
Ethiopia - Five Years Road Program (2005/06 -2009/10) During the coming five years, it is envisaged to rehabilitate and upgrade trunk roads, upgrade and construct link roads, construct substantial amount of rural roads and implement a comprehensive policy and institutional reforms. In addition, the Program includes heavy and routine maintenance in various types of roads, bridges works and studies for follow-on operation. Specifically, the Program would consist of: Civil work program including rehabilitation/upgrading of 1,600 km of federal roads, new construction of 2,775 km of federal roads, and improvement of bridges and structures; Road maintenance program including periodic maintenance on 3,660 km of federal roads, and routine maintenance on all types of roads; Regional Road construction/maintenance program including construction of 8,230 km of regional roads, periodic maintenance on 640 km of regional roads and construction of 85,900 km of low class roads; Institutional support to strengthen the Ethiopian Road Authority (ERA) and other concerned bodies; Consideration of a number of policy and institutional support studies such as Geographical Information System for the Ethiopian road network, transport poverty observatories, rural transport issues, road financing, national transport master plan, performance monitoring and a variety of system studies. The overall physical target is to: Increase the total road network to 134,000 km by the end of 2010 from the current 37,000 km. Increase the rate of acceptable (good + fair) roads to 73% for all road types by the end of 2009/10-from the current 64%. The Program implementation will have a total cost of USD 4.9 billion. Expected financing sources are: 47% by the Government of Ethiopia, 37% from external assistance, 6% from the Road Fund; and the rest by various sources (communities, NGOs, etc.). This Program provides business opportunities for contractors, equipment 1 suppliers and consultants both from Ethiopia and worldwide in the coming five years. Competitive bidding is adopted in selecting contractors, in order to increase transparency of the award process. Bidding is conducted under International Competitive Bidding (ICB) or National Competitive Bidding (NCB) depending on the type of intervention and required procedures. It is also to be noticed that Government’s is considering involving concessionaires in the form of Public Private Partnership for financing some heavily trafficked roads.
1 New and reconditioned equipment
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Tanzania The Government of Tanzania has launched a sector-wide rehabilitation and development programme in 1998 through the preparation of a National Transport Policy and a new 10-year Road Sector Investment Programme, yet to be finalised. It aims at developing safe, reliable, effective, efficient and fully integrated transport infrastructure and services. Nine priority transport corridors have been identified which, together with their feeder links, will interconnect most parts of the country.
Mombasa - Kampala corridor The Governments of Kenya and Uganda have given a priority to the Mombasa corridor in their respective budgets. In Kenya, through a joint Kenyan Government and IDA funding (60%), 386km of roads along the Northern Corridor will be rehabilitated (Sultan Hamud to Machakos turnoff, Machakos Athi River Embakasi, Lanet to Njoro turnoff, Njoro turnoff Mau summit Timboroa, Mau Summit Kericho Kisumu). This is in addition to other works funded by the European Union. The Government of Kenya is also considering the concessioning of the road.
NEPAD The NEPAD short term transportation programme considers as priorities a number of infrastructure projects including: The Northern Corridor Rehabilitation Programme, linking the port of Mombasa with the landlocked countries of the Great Lakes Region (Uganda, Rwanda, Burundi, Eastern Congo): Mombasa – Nairobi – Addis corridor. Renovation of the Addis – Djibouti road transit
EDF Road Rehabilitation Projects The EU is strongly supporting road rehabilitation project, under the EDF. Main ongoing projects concern Kenya, Tanzania, Uganda and Madagascar: Kenya o Mai-Mahiu-Naivasha-Lanet Road (100 km) o Sultan Hamud-Mtito Andei (130 km) o Rehabilitation and improvement of 220 km of rural roads in tea and coffee growing areas of Central Kenya. Tanzania o Rehabilitation Wazo Hill - Bagamoyo Road o Road Maintenance South Iringa & Ruvuma Regions o Mwanza Regional Transport Programme o Backlog Maintenance Project Central Corridor o Mwanza-Tinde & Nzega - Isaka Roads Uganda
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o Acholi Programme and the Karamoja Programme o Kagamba - Rukungiri Road in South-Western Uganda o South West Uganda Road Maintenance Project. Madagascar o Rehabilitation of sections of the RN6 (North) o Improved accessibility to two provinces in the South.
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AIRLINE TRANSPORTATION AND AIRPORT MANAGEMENT
SECTOR SITUATION AND MAIN PLAYERS
In the majority of EAIO countries, present sector structure and operation procedures are still strongly under government control.
At Continental level, the main institutional players are the African Union / NEPAD, AFCAC (Air Transport Committee for the African Aviation Conference), AFRAA (Association of African Airlines) and ICA 1 Africa. Their policy has two key objectives: The concrete implementation of the Yamoussoukro decision (1999), relative to an open skies policy , which includes, notably, the liberalization of air-transport and ground handling and airports concessioning; The drastic improvement of safety and security oversight and rectification of deficiencies identified by ICAO Safety and Security audit, which includes, notably, implementation of Global Navigation Satellite Systems (GNSS, using either GPS or Galileo) and harmonization and audit of procedures; this offers business openings for specialised companies.
The implementation of this policy is made difficult by the current situation of the operators : few EAIO airports and airlines are complying with the International safety and security standards, such as: the two main Regional hubs: Nairobi and Addis Ababa; Companies such as Kenya Airways, Ethiopian Airlines and Air Mauritius, while a number of other small to medium size companies have still to drastically increase their reliability and efficiency.
African air players are also facing a number of commercial and economic challenges: for airports: relationships between charges, cost of facilities, services and airport profit targets; airport and air traffic control charges, parking and landside infrastructure to increase airport’s revenue; cost for upgrading of security and safety; for airlines: cost of ICAO 2 Safety and Security audit, modernisation of fleets and other equipment, in some cases replacement of outdated planes, improvement of efficiency and profitability, development of new routes to be better connect the different countries between them and with the World, training of staff, introduction of modern technologies (such as e- ticketing), improvement of marketing strategies, establishment of adapted partnerships, etc.
1 African part of ICAO (International Civil Aviation Organisation) 2 ICAO: International Civil Aviation Organisation
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Among these operators, the involvement of the private sector is increasing:
For the airlines: o the privatisation of Kenya Airways is the largest single sale to date, a split between 26% strategic sale to KLM and flotation of 51% shares to other foreign and domestic portfolio investors; o a number of small private airlines have been created or are under creation.
For the airports, the most widely used mechanism for airport privatization is concession - type contracts. A typical case has been the concessioning of the Kilimanjaro International Airports (KIA) to the Kilimanjaro Airports Development Company (KADCO) in 1998. KADCO is owned by various shareholders including Mott MacDonald with 41.4%, South African Infrastructure Fund (SAIF) with 30%, Government of Tanzania with 24% plus one golden share while Inter consult has 4.6%.
Within the airports, the unbundling of services allows private providers to compete for the supply of handling services.
REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
One of the main priorities of NEPAD is the promotion of regional integration and transportation services. The goal of the fifth components of the NEPAD transport programme is focused on safe, secure and efficient skies and airports.
Programme objectives are to lower the cost of air travel and freight, to reduce the isolation of Africa in the air transport market, and to improve safety on the ground and in the air through support directed at sector reform, airline privatisation, regulatory capacity, restructuring of civil aviation services and upgrading of aviation infrastructure.
The safety and security agenda will be supported through the implementation of: a regional UACC (Upper Air Space Control Centre) project; two regional GNSS project (Global Navigation Satellite System); measures to comply with ICAO (International Civil Aviation Organization) security standards at least 2 major airport in the EAIO region; joint safety oversight inspection capacity (COSCAP - Cooperative Development of Operational Safety and Continuing Airworthiness Project), which ultimate objective is to enhance the safety and efficiency aspects of air transport through the establishments of a self- sustaining sub-regional entity
Funding for the above initiatives will be raised among African governments, International Financial Institutions and the Private Sector. For instance:
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the USD 207 million World Bank Northern Corridor 1 Transport Improvement Project , among others, aims at enhancing aviation safety to meet international standards; the renovation of the air cargo handling facilities at the Entebbe International Airport, in Uganda, is being funded by the EU Commission under the European Development Fund).
Other business opportunities in the air transport concern: the provision of advanced customer services (notably e-ticketing, only few EAIO Companies having already implemented this system, which will be almost compulsory by 2008); the development of the regional airplane transport market (regional airlines, medium-range airplanes, etc.), notably to fulfil the requirements of tourism and economic development; the certification of companies, according to the International requirements; the development of South – South or North – South cooperation (such as implemented by Royal Air Maroc (Senegal and Gabon) and Ethiopian Airlines (Ghana); the development/reinforcement of modern training facilities, at Regional level (both for initial and continuous training), which will be increasingly required and are supported by the African Union (for instance in Addis Ababa).
1 Linking Mombasa with the landlocked countries of the Great Lakes Region
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ENERGY SECTOR
POWER PRODUCTION AND DISTRIBUTION
SECTOR SITUATION AND MAIN PLAYERS
EAIO has some of the most significant potential hydropower, geothermal and natural gas reserves in the world, yet much of the population has low-level access to electricity, particularly in rural areas.
Privatisation has commenced in some countries, but with varied progress, and attracting private investment has proved complex and remains at the margins. Security of supply is becoming a pressing concern as sector reforms progress slowly.
A substantial injection of investment is required to close the demand gap in the region, meaning that there is no immediate end in sight to the energy deficit.
Public sector capital (government and/or donor) will still be needed, as a complement to, and a spur for, private capital, and a clear focus on sensible risk allocation between public and private sectors will be central to securing any private capital
It is to be noticed, that, besides hydropower, geothermal and natural gas, EAIO countries have an important potential in other sources for renewable energies and notably: “bagasse” (biomass refuse from the processing of sugar cane), in countries such as Ethiopia, Kenya, Mauritius, Uganda, etc.; Solar energy, in Kenya, Mauritius, etc. Wind energy with pilot projects in Djibouti, Ethiopia, Eritrea and Somalia.
A brief country-by-country analysis is provided below while a synoptic summary of electricity generation and consumption in EAIO is presented in tables 2 and 3, according to the data from the US Department of Energy.
Eritrea Eritrea has approximately 60 MW of diesel-fired generating capacity. The Eritrean Electricity Authority (EEA) handles generation, transmission and distribution of electricity. Electricity is only available in Eritrea's larger cities and towns, leaving about 80% of the Eritrean population without access to electricity. Some smaller villages have community diesel generators that can provide small amounts of electricity to households. Photovoltaic electricity generation is being used in special applications like refrigeration, lighting, operating heaters, fans, and laboratory equipment, throughout the country.
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Ethiopia Ethiopia is a country where the population largely lacks access to the electric power grid. According to state-owned Ethiopian Electric Power Corporation (EEPCO), only 14% of the population of Ethiopia is connected to the national power grid: less than half of Ethiopia's towns have access to electricity though EEPCO electrified more than eighty towns between 2001 and 2003. Ethiopia has approximately 700 MW of installed generating capacity thanks to construction of the 180-megawatt Gilgel Gibe hydroelectric plant funded by the World Bank, the European Investment Bank, and the Ethiopian government. Still the vast majority of Ethiopia's existing capacity (85%) is hydroelectric so the country's power system is vulnerable to extended droughts. Construction of another hydroelectric project, the 300-megawatt Tekeze began in 2002. Tekeze, which is being constructed by a joint venture between EEPCO and the China National Water Resources and Hydropower Engineering Corporation, represents China’s largest joint venture in Africa to date. Construction is supposed to be completed by 2007 to significantly boost EEPCO’s plans to improve rural electrification. In 2001, Ethiopia signed agreements to export electricity to neighbouring Djibouti following the interconnection of the countries' electric grids.
Djibouti Djibouti has currently 5 electricity generating power plants with an overall capacity of 114 megawatts (MW), all of which is thermal (oil-fired). Electricité de Djibouti, the national electric company, is developing several projects to increase production, to exploit renewable sources (wind and geothermal) and to strengthen power system reliability and peak capacity. Interconnection with Ethiopian electric grid is underway to be completed in 2009, as well as linkage with Yemen is being studied.
Kenya Kenya is highly dependent on hydroelectricity. Hydroelectricity plants provide about 75% of all electrical output. Five major stations in the Tana River basis supply power to the country: Kindaruma (44 MW), Gitaru (225 MW), Kamburu (94.2 MW), Masinga (40 MW) and Kiambere (144 MW). The Turkwel Gorge Hydroelectric station in the Turkana district has a capacity of 106 MW. An additional 30 MW is drawn from the Owen Falls dam in Uganda. There are a total of four independent power producers in the country including IberAfrica, Westmont Power (Kenya) Ltd, Orpower4 Inc. and Tsavo Power Company Ltd. The Sondu Miriu hydroelectric power project in Nyakach, started in 1999, is expected to be completed by 2006, adding 60 MW to the national grid. Kenya has also two steam stations, the Olkaria renewable power station (45 MW) and the Kipevu Thermal Station (45.5 MW).
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The government is promoting additional geothermal power, and plans to commission at least six geothermal power plants at Olkaria. When the plants are all online, geothermal power is expected to account for approximately 18% of Kenya's power output by 2017. The government is tabling a Renewables Bill, which will prioritize the building of geothermal power projects. In addition the northern Kenyan town of Marsabit has been identified as a potential site for installation of a wind- powered electricity generation site that would add 4,400MW to the national grid. In the last five years, power outages and the high cost of electricity has been a major issue that has continued to slow down the Kenyan economy as medium and large enterprises are still heavily dependant on power generators for electricity supply. In addition, only 15% of Kenyans have access to electricity. The Kenya Power and Lighting Company Limited (KPLC), a public limited liability company, is the sole licensee for the bulk power purchase, transmission, distribution and supply of electricity in Kenya.
Somalia Somalia currently has installed electricity-generating capacity of 70 megawatts (MW), all of which is diesel fired. Ente Nazionale Energia Elettrica (ENEE) is the entity responsible for generation, transmission and distribution of electricity in Somalia. Electrical infrastructure has been damaged and destroyed, and the ongoing strife has hindered the development of new electric resources. Studies have indicated that the Horn of Africa, especially Somalia, is a prime location for harnessing wind for electricity generation. In October 2001, WorldWater Corp., a U.S.-based water management and solar engineering company, signed agreements with the Government to become the master consultant and contractor for all water and energy programs in Somalia. This includes locating and managing groundwater sources in municipal and rural areas, delivering water for drinking and for irrigation using the WorldWater's solar pumping systems and generating independent electricity with its solar power systems.
Sudan Sudan's electricity sector is beset by poor infrastructure and frequent outages. Sudan has 730 megawatts (MW) of electricity generation capacity. The country's main generating facility is the 280-MW Roseires dam located on the Blue Nile river basin, approximately 315 miles southeast of Khartoum. The facility comes under frequent attack by rebel groups, and low water levels often cause its output to fall to 100 MW. Electricity is transmitted through two interconnected electrical grids -- the Blue Nile Grid and the Western grid -- which cover only a small portion of the country. Regions not covered by the grid rely on small diesel-fired generators and wood fuel for power, although blackouts and brownouts are common. Only 30% of Sudanese currently have access to electricity, but the government hopes to increase that figure to 90% in coming years. Several projects are underway to increase Sudanese generating capacity. The largest include the proposed 2,500-MW Merowe and 300-MW Kajbar hydroelectric facilities in northern Sudan. France's Alstom, China's Harbin Power and several Arab
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investors have contributed funding to construction of the Merowe facility, which is scheduled for completion in July 2008. China is financing 75% of the USD 200 million Kajbar dam's construction, with Sudan providing the remaining 25%. In addition to the Merowe and Kajbar facilities, in June 2004, Sudan inaugurated two electric power stations located north of Khartoum, estimated to have a combined capacity of 330 MW. In November 2004, Sudan's first independent power production (IPP) project also went on stream. Located near Khartoum, the 257 MW diesel plant sells output to the state-owned Sudan Electricity Corporation (SEC). Several additional power stations with a total capacity of 700 MW are scheduled for completion before 2008. Foreign investment in the Sudanese power sector is expected to increase with the cessation of the recently-ended civil war. In June 2004, for example, the United Arab Emirates (UAE) pledged to invest in the Sudanese power sector following the signing of a peace accord.
Tanzania At present, around 90% of Tanzania’s energy needs are met by biomass, particularly wood fuel. Petroleum and electricity account for 8% of energy consumption, and coal and other sources for less than 1%. Tanzanian government has attempted to diversify the country's sources of energy, but so far with limited successes. The country's electricity supply has been erratic because of the national grid's heavy reliance on hydroelectric power, which in turn depends on rainfall. In the past year, poor rainfall contributed to several electricity shortages due to the inability of the country's Ubungo electricity plant to supply adequate amounts of energy through out the country. It has a capacity of 120 MW, roughly one quarter of Tanzania's current peak demand. A private international consortium, Songas, has built a 200-km underground pipeline to carry natural gas from the island of Songo-Songo to the industrial area of Ubungo in the country's commercial centre, Dar es Salaam. To provide power to the inhabitants living along the pipeline the World Bank founded scheme includes building a miniature 4.5 MW power station with an electric grid supplying electricity to some 80,000 people living in four towns. Tanzania's sole producer and supplier of electricity, Tanesco (Tanzania Electricity Supply Company) continues to face a severe budgetary shortfall, due largely to a multi-million dollar bill for past electricity consumption owed to the company by the Tanzanian government. The Tanzanian government and the World Bank have devised a means of exploiting the country's natural gas resources to increase the country's much needed electrification.
Uganda Among the nations of the region, Uganda has the biggest hydropower potential (from the Nile River). However, only a fraction of Uganda's hydroelectric potential has been developed. Much of the electricity network is poorly maintained and power cuts are frequent. Just 3-5% of the population has regular access to electricity and many towns, especially in the North of the country do not have a power supply.
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The Ugandan Energy Ministry has set a target date of 2012 to provide 10% of the country’s population with access to electricity. The government of Uganda is thus actively seeking USD 1.69 billion in foreign investment over the next ten years to upgrade its energy sector. The national energy plan for Uganda lists five electricity generation units, including the Bujagali hydroelectric facility (250 MW - 2,000 MW), Karuma dam (100 MW - 200 MW), and the rehabilitation of the Nalubaale dam (formerly the Owens Falls dam) (180 MW) and its extension (five units of 40 MW each) near Jinja, which entered service in 2000 and enhanced Uganda's position as the main source of power in East Africa. Under the plan, Uganda's government is to retain ownership of existing power stations, but will be able to cede them to private operators under leasing agreements. The Ugandan electricity board split into three entities with transmission assets, under Uganda Electricity Transmission Company (UETC), to be retained by the state and the generation and distribution components to be sold as 20-year concessions. Norpak Power, a Norwegian company was awarded a contract in 2003 to build a USD 360 million- 400 million hydroelectric power station in Karuma, on the River Nile in Northern Uganda. The Karuma development, expected to become operational in 2006, will add an estimated 200 MW to the national grid. At the same time the Norwegian state firm Statkraft Norfund Power Invest (SNPI) has selected four sites in western Uganda, which include Muzizi (10-20 MW), Nengo Bridge (7.6 MW), Bugoye (11.1 MW) and Waki (5.1 MW) to exploit hydro-electric power from small dams.
Mauritius Power generation in Mauritius is provided through the 70-MW IPP facility north of the Mauritian capital of Port Louis built in early 2001 by the Compagnie Thermique de Belle Vue (CTBV), a joint-venture composed of Harel Frères (51%) of France's Cidec (27%), the Sugar Investment Trust of Mauritius (14%) and the State Investment Fund (8%). The CTBV plant utilizes “bagasse” (biomass refuse from the processing of sugar cane) as its primary fuel. Swaziland also expressed interest in feasibility studies of utilizing its own sugar cane bi-products for electricity production. Mauritius is also examining several projects designed to utilize solar energy to provide electricity for street lamps in its capital city.
Regional interconnections As concerns regional interconnections and network integration, the SAPP (Southern Africa Power Pool) including South Africa, Angola, Botswana, Congo (Kinshasa), Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, and Zimbabwe was established in 1995. The SAPP’s aim is to integrate the South African power markets, thereby allowing utilities to reduce generation costs and provide reliable electricity supplies to the grids of member nations. More recently in 2005 East African energy ministers have announced plans to enhance electric power trade, transmission and distribution among the nine East African countries including Egypt, launching an EAPP (Eastern African Power Pool) aimed at interconnecting the sub region in power
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trade. The establishment of the power pool will also help to attract investments in the region, and to exploit the region's hydropower and geothermal potential.
Tab. 2 - Total net electricity consumption, 1980-2002 TWh 1981 1991 2001 2002 Comoros 0.01 0.01 0.02 0.02 Djibouti 1 0,12 0,20 0.23 0.25 Eritrea - - 0.21 0.23 Ethiopia 0,65 1.19 1,67 2.00 Kenya 1,79 3.06 4.15 4.34 Madagascar 0.39 0.53 0,77 0,78 Mauritius 0.41 0,73 1,67 1,71 Rwanda 0.15 0.17 0.20 0.20 Seychelles 0.05 0.09 0.18 0.20 Somalia 0.07 0.23 0.23 0.22 Sudan 0,88 1.50 2.30 2.40 Tanzania 1.16 1,74 0,125 2.57 Uganda 0.30 0,61 1.38 1.40
US Department of Energy, Energy Information Administration, International Energy Annual 2002
Tab. 3 - Total net electricity generation by type, 2002 Geothermal Conventional TWh Hydroelectric solar, wind, Total thermal wood & waste Comoros 0.02 0.00 0.00 0.02 Djibouti 0.25 0.00 0.00 0.25 Eritrea 0.22 0.00 0.00 0.22 Ethiopia 0.02 1.77 0.01 1.80 Kenya 1.42 2.38 0.46 4.25 Madagascar 0.30 0.53 0.00 0.83 Mauritius 1.73 0.07 0.00 1.80 Rwanda 0.002 0.17 0.00 0.17 Seychelles 0.20 0.00 0.00 0.20 Somalia 0.25 0.00 0.00 0.25 Sudan 1.25 1.22 0.00 2.47 Tanzania 0.22 2.55 0.00 2.77 Uganda 0.02 1.65 0.00 1.67
US Department of Energy, Energy Information Administration, International Energy Annual 2002
1 Source: Electricité de Djibouti
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REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
The World Bank has recently developed a comprehensive energy development strategy for Africa through the Africa Energy Team. The mission of the Africa Energy Team is to promote commercially-driven, sustainable and environmentally responsible development of the energy sectors of client countries, in accordance with adopted infrastructure objectives of Country Assistance Strategies (CAS). Each country strategy combines national energy priorities and the country’s participation in important regional energy initiatives.
These country strategies are "living" and evolve as Country Assistance Strategies objectives are adjusted from time to time and as priorities across the different infrastructure sectors change. Six strategic priorities have been selected by the Bank for contribution. Access - Promote access to modern energy supplies on a commercial basis, especially in rural areas, including through aggressive promotion of renewable technologies. Traditional Fuels - Promote more efficient and sustainable use of traditional fuels. Public/Private Partnerships - Promote private sector solutions to management and investment constraints through privatizations, forging public/private partnerships with foreign and domestic investors and introducing modern sector regulation. Utilities - Promote needed financial and institutional strengthening, including improved planning. Markets - Promote liberalization of markets for petroleum products, and development of markets for power and natural gas, domestically and regionally. Regional Infrastructure - Promote regional development of energy infrastructure to achieve economies of scale, improve energy security, increase intra-regional trade and forge closer political ties.
Selected business opportunities and current or upcoming projects are described on a country-by- country basis:
Djibouti To face a 3 to 4% yearly increase of electricity consumption, Djibouti is simultaneously: increasing its production capacity both from thermal and alternative sources; developing interconnections with neighbouring countries: Ethiopia and Yemen. The main projects, over the 2006 to 2008 period, for developing the electricity production concern: the renovation of existing diesel thermal plants (Boulaos); the implementation of implementation of additional diesel production capacities (Boulaos, and other sites); the construction of a 30 MW geothermic power plant near the Assal lake;
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the exploitation of the country wind potential: following a preliminary survey, a 2 MW wind farm is under implementation in Arta; other a wind farms are planned in Grand Bara, Goubet, Day and Obock.
Djibouti and Ethiopia are developing a project to interconnect the two countries in order to provide excess Ethiopian hydropower to Djibouti in summer while the opposite in winter. The 230 kV transport line between Dire Dawa and Djibouti, about 230 km in Ethiopia and 83 km in Djibouti, will cost in the range of 60 MUSD and is financed by the African Development Bank. The tender dossier is under finalisation. The new system is expected to enter into service in 2009.
The Yemen-Djibouti interconnection has been studied by Electricité de France, under the NEPAD aegis. The project expected amount is 100 MUSD and it will allow importing low-cost power produced from largely available gas in Yemen. The 132 kV transmission line will extend about 500 km of which 300 in the country and about 30 under the sea.
Eritrea The Eritrea Power Distribution and Rural Electrification Project is a USD 57 million World Bank project dedicated to: establish a sustainable program for expanding the population's access to electricity; improve the security of electricity supply.
Broadly, the Project envisages four components: Institutional and Capacity Building, to support the development of the institutional and regulatory aspects of the power sector; Asmara Distribution System Rehabilitation and Expansion; Rural Electrification, to increase electricity access in 50 rural towns and villages near the towns of Keren, Dekemhare, Barentu and Adi Keih to grid electricity; Environmental Mitigation, which will finance the cost of implementing the Environmental and Social Management Plan prepared for the project. A 750 KW wind park is under consideration, near the City of Assab.
Ethiopia The Ethiopian Electric Power Corporation (EEPCO) has launched a large investment program, based on the Power Sector Development, which includes building new hydroelectric plants and extending the grid to different areas of the country to promote critical socio-economic benefits of industrial development, agricultural productivity, enhancement of educational opportunities and general betterment of the population. The main sub-programs are as follows: Power generation sub-program – Its main objective is mitigating the power and energy imbalance between the supply and demand, as well as improving reliability of supply. This will require rehabilitation and upgrading of hydro plants to enhance the power capacity and
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energy capability, extension of existing power plants and expansion new power plants in the coming five years. This program will increase the present capacity by an additional capacity of 320 MW or 98%. Generation rehabilitation and upgrading – It includes rehabilitation of Koka, Tis Abay and Awash hydro power plants. Generation expansion and extension - New power plants and physical extension of existing power plants are envisaged to alleviate the generation deficit. The program, with an overall target of 691 MW capacity, encompasses both: o hydro (big and small) plants o thermal plants: Ethiopia possesses a considerable geothermal potential: resources of both high- and low-enthalpy geothermal have been located in the Ethiopian Rift valley and in the Afar depression. Exploration that began in 1969 has, to date, revealed the existence of 24 prospects having about 700 MWe potential 1. Generation study - The study program encompasses major hydropower plants the implementation of which may be either in the mid term or the long term. o Feasibility study currently in progress are Beles (220 MW), Chemoga-Yeda (318 MW), Halele-Werabesa (374MW) and Ficha – Amerti - Neshe (40MW) hydro power projects. o Ethiopia intends to build the biggest ever dam in the country on upper Nile in Ethiopia with investments amounting to 800 million dollars. This dam falls within the framework of an agreement signed in 2001 by Egypt, Ethiopia and Sudan. Feasibility studies of the dam are expected to be completed by mid 2006 Power transmission sub-program - Its main objectives are to replace diesel mode of supply and to provide additional capacity to meet growing demands in already electrified centres. During this programme period 2,301 km of high voltage transmission lines and 46 steps down substations are envisaged to be constructed. In addition rehabilitation and reinforcement of lines and substations are also planned to mitigate power interruptions and improve system stability. Power distribution sub-program - Its main objective aims at satisfying the growing demand of the industry, reducing the waiting time by improving service availability and enhancing quality of supply and reliability will also be given adequate consideration. A new higher medium voltage level is being introduced for supplying remote areas which are out of reach of the existing network. During the five year programme the distribution network is to be extended by about 11,350 km of 33 kV, 15 kV and low voltage lines.
1 In 2005, the Ethiopian Electric Power Corporation (EEPCO) sought international support for bringing the Aluto- Langano geothermal plant (two-unit 8.5 MWe) back into operation. The Geothermal Development Associates (GDA), an American firm, was awarded the contract. Ethiopia’s geothermal potential is such that if adequate finance becomes available to fund development then not only the power would be used for domestic consumption, but also potentially for export
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Rural electrification sub-program – Under this programme it is envisaged to electrify 210 towns and increase the number of towns which have access to electricity from 458 to 668. When the urban and rural distribution works will be completed, 17% of the population will have access to electricity (when compared to current 13%). Institutional development sub-program - The main objectives are to ensure appropriate institutional set up, financial resources for sustainable development, human and material resources. Private sector involvement - Further effort will be made: o to promote and develop, in equipment areas, local manufacturing and assembly capability to enhance local material usage especially in steel towers, insulators, small size turbines, penstock manufacturing, diesel units and distribution networks; o to develop the role of the private sector in generation areas, specially in hydro, coal and natural gas,; o to minimize the huge investment required to build hydro power plants; for that purpose, EEPCO has opened discussions with private power producers to enable them participate in this area. GTZ TERNA Wind Energy Programme – GTZ supports EEPCO in the planning of a grid connected wind farm in the range of 50-60 MW.
Kenya The Kenyan government has developed a National Energy Plan to improve the delivery of energy services in Kenya. The project will last four years and end in 2008/09. On completion 400,000 more Kenyans would be connected on a superior grid not prone to power outages. The Kenya Power and Lighting Company (KPLC) will also reduce system losses from about 19% and reduce power outages, which now average 11,000 per month. In addition, the programme intends to increase Kenya's export capacity for Liquefied Petroleum Gas (LPG) and reduce incidences of fuel adulteration. Finally the programme entails: strengthening institutions and capacities of KPLC, KenGen, the Ministry of Energy, the Electricity Regulatory Board (ERB) and the Kenya Bureau of Standards; providing studies and engineering services covering LPG import handling, storage and distribution facilities; preparing a business plan for the proposed Geothermal Development Company and preparation of future energy projects. The energy programme has been sponsored by the International Development Agency (IDA) which contributed USD 38.7 million, the European Investment Bank (EIB) USD 51 million, AFD of France USD 25 million and the Nordic aid agency, NDF, which gave 12 million Euros.
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Within the above programme, in 2005 the Power and Lighting Company of Kenya has launched an outreach electrification programme to increase the use of electricity. The Umeme Pamoja programme is a countrywide campaign seeking to persuade more Kenyans to connect to the national grid and ensure that the company meets its target of lighting 150,000 new homes every year. People living in the same neighbourhood or near existing transformers are being encouraged to come together to apply for electricity supply and raise funds to pay for installation. The company will construct 11.4 km of 11 kV power line and install 16 transformers and 1,050 service line cables to serve the residents.
The credit from the World Bank (International Development Association) is specifically to finance the Energy Sector Recovery Project which, in addition to investment components in generation and distribution, is targeted at: enhance the policy, institutional, and regulatory environment for private sector participation and sector development; expand power generation capacity to meet the economy’s projected supply deficits by FY2006/07; increase access to electricity in urban and peri-urban areas while improving the efficiency, reliability, and quality of services to existing consumers through the hiring of a private-sector operator for the Kenya Power and Lighting Company. To this respect Ireland’s Electricity Supply Board International appears best placed to win the management contract. Part of proceeds will also finance the replacement/upgrading of Kenya Power and Lighting Company Limited (KPLC) SCADA/EMS system and associated communication network.
Finally, works on phase two of the Sondu-Miriu Hydro-electric power project have begun in 2005 by the Kenya Electricity Generating Company (KenGen) based on a Kenya and Japanese Sh 8.5 billion funding agreement for the project, while the World Bank had released Sh 70 million for completion of the fourth phase of the Olkaria geothermal project.
Rwanda The Rwanda “Urgent Electricity Rehabilitation” is a USD 25 million World Bank project to alleviate power shortages; and enhance the capabilities of energy sector institutions in Rwanda. The project consists of 3 components: The first, power system reinforcement, consists of generation and network investments for power system rehabilitation and expansion, including additional thermal generating units and rehabilitation of substations. The second component, technical assistance and capacity building, will include project implementation, technical assistance, and capacity building support to sector entities for energy sector policy, regulatory, and program development (institutional strengthening). The third component, domestic resource development and efficient utilization, will support studies, bidding documents, etc. for future domestic generation capacity, especially in the
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areas of hydroelectric power, biomass resources, and micro-hydro grids for rural electrification
Tanzania Tanzania plans to develop two offshore natural gas fields to provide fuel for power generation. One project aims to exploit natural gas in the country's largest known field, Songo-Songo, located in the Indian Ocean southeast of the capital Dar-es-Salaam. Natural gas from the Songo-Songo field will be transported to Dar es Salaam by a 130-mile pipeline. Upon completion of the project, five liquid fuel turbines at the 112 MW Ubungo power plant will be converted to natural gas, and the power generated by the plant will be fed directly into the national grid. The World Bank has approved USD 183 million in financing for the Songo-Songo project. Plans call for other industrial users to utilize Songo-Songo gas, and the pipeline could be extended to the Kenyan port city of Mombasa to supply gas for industrial usage and power generation. A second Tanzanian project is expected to utilize natural gas reserves from the Mnazi Bay field. The gas will be piped to the southern Tanzanian town of Mtwara for use in power generation. The proposed 15 MW generating plant could later be expanded to 50 MW.
Uganda In Uganda the construction of two thermal plants in Namanve and Mutundwe with capacity to generate 100 MW will begin in 2006 and initial power generation starts January 2007, while the 250 MW Bujagali hydro dam project is expected to kick off in 2006 and start generation in 2010. Demand for power has continued to grow at 27 MW per year without substantial new generation capacity. The Norwegian firm, AS Jacobsen, won the bid to install thermal generators at Namanve and a power purchase agreement was signed allowing the firm as an independent power producer to generate and sell at the grid. The government of Uganda is also implementing an “Energy for Rural Transformation” (ERT) programme, which aims to supply 480,000 rural clients with electricity by 2012: only 2% of the rural population uses electricity compared with 8% in urban and peri-urban areas. The Ugandan Energy Ministry is encouraging manufacturers to take advantage of financial incentives on offer for them to invest in the rural electrification campaign. The Rural Electrification Agency (REA), a semi-autonomous agency established by the Energy Ministry to operationalise the rural electrification programme under a public-private partnership, is currently selecting and studying the feasibility of energy projects that manufacturers can take up. A total of USD 500 million will be spent for the 10-year programme, of which USD 375 million will be private sector investment. The World Bank as well as the Swedish International Development Agency, Japan International Co-operation Agency, the Norwegian Agency for International Development and the Chinese government will also give grants or soft loans for the project. The rural electrification project will have five standard project types. They will include national grid extension with or without concession and power generation for sale either directly to the existing
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grid that is owned by Uganda Electricity Distribution Company Ltd and operated by Umeme or combining with new transport lines to connect to the grid. The models of operation with investors will include long-term concessions of up to 20 years on a Build, Operate and Transfer or Build, Own and Operate basis. For example, West Nile Rural Electrification Company (WeNRECo) operating on a Build, Own and Operate basis invested USD 14.75 million and the Uganda government with support from the World Bank provided a subsidy of USD 7.5 million.
Comoros Islands The main projects include: The Comoros Islands - Energy Sector Rehabilitation Programme. EIB interventions for the partial financing of sector reform on the three islands of the archipelago.
Mauritius The government of Mauritius approved, in 2005, the privatization of the energy market through the licensing of electricity services including the generation, transmission and distribution of electricity.
Zambia, Tanzania and Kenya In 2003, Zambia, Tanzania and Kenya signed an agreement to construct an electricity grid that would unite the power grids of the three countries, so that they might access electricity from the Southern Africa Power Pool (SAPP). The project would help to enhance development of the SAPP, allowing power swaps and transfers among the three countries and the SAPP power networks, and improve the reliability of power supplies across southern Africa. The feasibility study for the scheme, which includes its environmental impact assessment (EIA), has been financed through a USD 1.1 million World Bank Credit facility. Construction on the USD 323 million project began in October 2004 and is scheduled to be completed by the end of 2006. It is envisaged that transmission lines will be constructed between Serenje (Zambia), Mbeye (Tanzania), Arusha (Tanzania) and Nairobi (Kenya), and the capacity of the links may be increased to 400 MW from an originally-envisaged 200 MW.
PPP In addition to the above projects, a few PPP transactions are presently in preparation or under consideration by the relevant authorities: Tanzania re -tendering for the Tanzania Electricity Supply Company TANESCO; Uganda: unbundling and privatisation of the Uganda Electricity Board UEG; Djibouti: EDD (Electricité de Djibouti) could enter into a privatisation process, in a further stage.
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WATER SECTOR
WATER AND WASTEWATER SERVICES
SECTOR SITUATION AND MAIN PLAYERS
Access to water and sanitation services in EAIO is rather poor. According to the data yearly published by the UN Joint Monitoring Program, water supply coverage is in the tune of 50% of the population while sanitation ranges around 30-35%. The situation results to some extent better in urban areas, where coverage is about 80% for water and about 50% for sewerage but still far from acceptable levels. The UN Millennium Development Goals (MDG) targets established in 2000 are to reduce the proportion of people without access to improved water and sanitation by one-half, and to achieve universal coverage by the year 2025 require that tens of million people will have to be provided with service over the next years.
In addition to that, even in those countries where coverage is at a relatively high level, distress exists about the quality and efficiency of water supply and sanitation systems. Data from the IBNET World Bank benchmarking program on water utilities performances shows that there is a large scope for improving operations in terms of levels of services to customers, rational use of resources, environmental protection and costs optimisation (see “Performance indicators for water services in EAIO” in annex). Although the information may represent a partial sample, some general remarks may be highlighted: Concern on the quality of the drinking water (compliance of chlorine residual around 90-95%) Large technical and commercial losses (40% on average) Metering not reaching 50% of consumption Low continuity of service with water availability for 15-18 hours a day Revenues barely covering operating costs with consequence on the capacity to sustain investment programs for new works and extraordinary maintenance.
As a result, with some relevant exceptions, in many EAIO countries the situation of water services is found into the typical vicious circle spiral: degradation in infrastructure and management, deterioration in utility performances, decline of service quality, reduction of available financial resources.
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In the following tables a set of performance indicators provide a full picture of the sector situation according to the latest available data from the WHO – UNICEF Joint Monitoring Programme.
Tab. 4 - Water and sanitation service coverage in EAIO, 2002 Water supply coverage Sanitation coverage
(%) (%) year total urban rural total urban rural Comoros 2002 94 90 96 23 38 15 Djibouti 2002 80 82 67 50 55 27 Eritrea 2002 57 72 54 9 34 3 Ethiopia 2002 22 81 11 6 19 4 Kenya 2002 62 89 46 48 56 43 Madagascar 2002 45 75 34 33 49 27 Mauritius 2002 100 100 100 99 100 99 Rwanda 2002 73 92 69 41 56 38 Seychelles 2002 87 100 75 100 100 100 Somalia 2002 29 32 27 25 47 14 Sudan 2002 69 78 64 34 50 24 U. Rep of Tanzania 2002 73 92 62 46 54 41 Uganda 2002 56 87 52 41 53 39 AVERAGE EAIO 50 82 39 30 47 24
Data from WHO – UNICEF Joint Monitoring Programme 2002
The activities of EU enterprises in the water services sector in EAIO regions is characterised by a number of key features:
The three largest French water utilities, Veolia, Suez-Ondeo and Saur have been promoting PPPs in the region exploiting synergies with related business such as construction (Degrémont of Suez group, OTV and SADE of Veolia Group, Bouygues with Saur). Among them Ondeo has been the most active one in EAIO. Besides being the leading international operator in South Africa, Ondeo has been running the management contract to enhance customer management and revenue collection in Kampala, Uganda in the National Water and Sewerage Corporation (NWSC) since 2002.
In the last 10 years, PPPs have been supported widely by the World Bank as part if its standard policy for public services, attracting participation from several UK water companies such as Biwater, Severn Trent, and United Utilities, in addition to the French leaders. Their future interest in the region will be dependent on the trade-off between appealing of market business opportunities and perceived risks.
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Tab. 5 - Performance indicators for EAIO water services Non revenue Metering Staff W/'000 Continuity Chlorine Operating Country Utility City Year water Level W conn of service compliance Cost Coverage % % ratio hour % ratio Djibouti ONED Djibouti 2000 38% 15,0 20 90% 1,14 Eritrea KWSAAR Keren 1999 7% 10,0 6 95% 0,66 Ethiopia AAWSA Addis Ababa 1999 31% 8,2 24 100% 0,45 Ethiopia Awassa 2002 29% 11,5 1,28 Ethiopia Harar 2002 30% 16,9 1,37 Ethiopia Dire Dawa 2002 26% 28,2 1,34 Kenya NAQWASS Nakuru 2000 47% 15,0 6 90% 0,57 Kenya NCC-WSD Nairobi 1998 52% 20 100% Kenya NWCPC Mombasa 2000 40% 7,3 19 92% 0,94 Kenya NYEWASCO Nyeri 2000 46% 10,8 24 100% 1,20 Madagascar JIRAMA Antananarivo 1999 31% 13,1 24 96% Mauritius CWA Port Louis 2000 43% 4,0 18 99% 1,82 Tanzania AUWSA Arusha 2001 39% 13,7 20 100% 0,87 Tanzania BUWASA Bukoba 2002 60% 25% 22 90% Tanzania DAWASA Dar Es Salaam 2000 35% 13,4 14 80% 0,96 Tanzania DUWASA Dodoma 2000 42% 18,9 12 100% 0,29 Tanzania IRUWASA Iringa 2000 45% 20,0 17 80% 0,81 Tanzania MTUWASA Mtwara 2003 60% 45% 8 90% Tanzania MUWASA Moshi 2002 49% 100% 11,8 24 100% 1,65 Tanzania MWSA Mwanza 2000 65% 16,6 12 60% 1,10 Tanzania SHUWASA Shinyanga 2000 44% 20,0 13 80% 1,38 Tanzania SOUWASA Songea 2002 42% 12% 18 100% Tanzania TUWASA Talora 2000 34% 12,8 14 100% 0,80 Tanzania TUWSA Tanga 2000 37% 9,9 21 95% 1,43 Tanzania UWSA Mbeya 2000 30% 35,4 5 95% 0,11 Uganda NWSC Kampala 2000 42% 21,1 24 97% 0,41 AVERAGE 40% 46% 14,9 16,4 92% 1,0 Surveys undertaken by the Water Utility Partnership for Capacity Building in Africa (WUP) within the IBNET World Bank water benchmarking project.
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Biwater is one of the most active water operators in the East Africa and Indian Ocean region. In 2005 Biwater Plc of the U.K. has been awarded a 12-year Build-Own-Operate-Transfer (BOOT) contract to construct and operate a 200.000 m 3 per day drink water treatment plant to provide potable water to the Umdurman district of Khartoum (Project) for a tal project cost of USD 104.5 million. Construction is to be carried out in 3 years followed by a 12-year management period after which the assets and the management responsibility will be transferred to the Khartoum parastatal Khartoum State Water Corporation (KSWC).
In 2004, a Cascal/Biwater/Gauff Ingenieure consortium started to operate and manage the water supply and sewerage systems in the towns of Dar es Salaam and Bagamoyo in Tanzania with a population of around 3 million. The contractual framework comprise to transfer the asset ownership to a public granting authority vehicle, PGA, which in turn will lease the former state-owned Dar es Salaam Water & Sewerage Authority (DAWASA) to the private operator. Cascal (Biwater/Nuon), Vivendi and Saur International also took part to the tender for the USD 160 million contract. The project is being financed by AfDB, the European Investment Bank, and the World Bank in the form of a grant. Both the private sponsors’ and the Dar es Salaam Water and Sewerage Authority are providing a further USD 0.5 million contribution.
Severn Trent has one of the world’s largest water and wastewater consulting operations and in the last 20 years has executed several assignments in EAIO such as Kenya, Mauritius, and Swaziland. Consulting projects are part of a strategy to gain competitive advantages in view to bid for more complex PPPs initiatives. Clients range from municipal authorities, water boards and drainage bodies, to multi-national companies. Some of the executed assignments concern Tanzania (PSP Implementation Assistance), Mauritius (Twinning Partnership) and Swaziland (Organisational & Financial Review). At present they are prequalified for the international tender for two water concession in Lagos, Nigeria (Lagos East and Lagos West).
In addition a number of newcomers have also been pursuing water projects, including operators from other European countries and South Africa and consulting engineers firms with operational experience. The German Lahmeyer International has just been awarded a two-year management contract financed by the World Bank for about USD 10 million for the of the national utility Jirosy Rano Malagasy (Jirama). The tender had been launched in 2004 and had attracted bids from Lahmeyer International, Netgroup Solutions, Vivendi Environment (now Veolia) and Saur. The German group Gauff Ingenieure has been extensively working in Africa for water projects, including Uganda, Tanzania and Kenya. They also have been involved in operations carrying out a service contract to improve revenue collection in Kampala, Uganda from 1998 to 2001 and are now in the consortium in charge of the 10 years management contract for Dar El Salaam in Tanzania.
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Rand Water is the largest South Africa’s largest water board supplying 10 million people. The company is known to be an active player in Africa and very interested in PPPs in the region. Netgroup Solutions is a consulting and technological solutions company providing engineering and management services for water and power utilities. It has recently participated to the tender for the management contract for the national water and power utility of Madagascar JIRAMA.
Concerning the institutional organization of water sector in EAIO, it can be synthesized as follows, according to a recent comprehensive review elaborated on behalf of the African Water Partnership,
Type Countries A single central government Djibouti ONED department is responsible for Ethiopia Ethiopian Water Supply and Sewerage organisation and decision-making. Authority (WSSA) Madagascar JIRAMA Services provided by a national Rwanda ELECTROGAZ public operator. Uganda National Water and Sewerage Corporation (NWSC) Multiple government departments Mauritius Central Water Authority (water) responsible for organisation and Sudan National Water Corporation (NWC) decision-making.
Services provided by a national public operator. A single central government Kenya, Tanzania department responsible for organisation and decision-making. Services provided by local government bodies.
In many countries water supply and sanitation services are provided jointly: Ethiopia, Kenya, Sudan, Tanzania, Uganda and the Seychelles. In some case multi-utility organisations exist referring, in the majority of cases, to the joint provision of water and electricity services.
REGIONAL DEVELOPMENT PROGRAMMES AND EXPECTED BUSINESS OPPORTUNITIES
In view of the MDG deadlines, national governments, international financial institutions and donors are strongly devoted to attain the restructuring of the water sector over the next 10 years. The World Bank already has ongoing commitments in excess of USD 500 million for water projects in the region (Ethiopia, Tanzania, Mauritius, Kenya, Madagascar, and Rwanda) and several other projects are in preparation.
Similarly the Africa Development Bank is providing grants and loans in the range of USD 200 million to support the sector reform in Ethiopia, Kenya, Tanzania, Uganda and Madagascar. The
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Bank has been established a special water fund to seek support in achieving the Millennium Development Goals on Water Supply and Sanitation in Rural Africa. The African Water Facility (AWF) has also received contribution from Canada, France and Norway.
The European Union is also at the forefront of international development aid having just launched a Euros 500 million Water Facility for African, Caribbean and Pacific (ACP) countries in March 2004, in addition to other resources already earmarked for water within the 9 th European Development Fund and the previous, explicitly aiming at progressing towards achievement of the water and sanitation related MDG. The efforts of governments and donors focus on four main issues: water resources and bulk supply, distribution and access to safe water, sanitation and environmental protection in urban areas and vulnerable settings, operational and financial recovery of local water utilities.
In this context upcoming opportunities business in EAIO concern:
Public Private Partnerships . International donors are strongly supporting sector reform entailing institutional strengthening, operational enhancement and involvement of Private Sector through PPP schemes. In many case acquisition of financing is conditional to embarking in the delegation of service to private operators. Delegation of water services to the private sector in the form of PPPs is largely attempted in EAIO countries.
Green field projects on BOT concessions . The construction of new water production works and wastewater treatment will be an innovative solution to meet the growing water services demand with the participation of private funds. Such projects involve water utilities together with engineering company and construction enterprises with experience in the water sector.
Cooperation and exchange projects . The very numerous applications to the EU-ACP Water Facility of the European Union Water Initiative, which co-finances ACP-EU joint cooperation and investment projects, reflect a large interest for the sector by industry and civil society.
A summary list of World Bank and EU funded projects active in the region is provided below:
Ethiopia - Ethiopia Water and Sewerage Institutional Restructuring Project - A USD 75 million World Bank project to improve institutional arrangements and capacity for planning, implementation and management of water supply and sanitation services and water resources management in a decentralized environment and increase water supply and sanitation coverage with improved efficiency, quality and sustainability of services in urban and rural communities.
Kenya - Nairobi Water and Sewerage Institutional Restructuring Project - A USD 15 million World Bank project to build a strong governance, institutional, and service delivery framework for sustainable delivery of water and sewerage services to the population of
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Nairobi. The three main project components are be (a) support a new autonomous asset holding entity — Nairobi Water Services Board (NWSB) ― and a new autonomous and ring- fenced water and sewerage service provision company for Nairobi, the Nairobi City Water and Sewerage Company (NWSC); (b) support activities to strengthen the commercial, financial, and technical operations of NWSC; and (c) support monitoring of project activities and implementation of a communication program that complements the transformation in services provision.
Rwanda – Rural Water Supply and Sanitation Project - A USD 20 million World Bank project (approved in June 2000, effective in January 2001) to increase availability of water supply, and sanitation services in rural areas in Rwanda.
Somalia – EDF Water and Sanitation Projects - Ongoing projects funded by the EU for the water and sanitation sector in Somalia: o Puntland, Somaliland: projects in the field of infrastructure, transport and water and sanitation o Somaliland: project of Support to Community Water Supply, Sanitation, Hygiene Promotion and Primary Health Care implemented by the German Red Cross in selected rural areas. o Northwest Somalia: Caritas-led Water, Sanitation and Hygiene Intervention
Tanzania – EDF Water and Sanitation Projects - Ongoing projects funded by the EU under the 7th and 8th EDF for the water and sanitation sector: o Mwanza Water Supply and Sewerage Rehabilitation o Iringa Water Supply o Water supply Programme Regional Centres II o Institutional Strengthening Water Supply in 4 Towns.
Uganda - Mid Western Towns Water Supply Project - Ongoing project funded by the EU under the 7 th and 8 th EDF (European Development Fund) for the water and sanitation sector:
Djibouti - Water Supply Project – A € 13 million EU project aiming at renovating the urban water system in Djibouti city and the district capitals, renew rural water supplies, support national sanitation plans and environmental protection projects and explore alternative drinking water resources. In addition there will be a contribution under the programme to rehabilitate/rebuild local infrastructure affected by the civil war, from the non-focal component “implementation of the peace agreement and decentralisation”.
Mauritius - Environmental Sewerage and Sanitation Project - A USD 65 million World Bank project to:
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o improve the health and sanitary conditions of the populations in Port Louis, targeting the city ' s southern districts, industrial zones and affected coastal zones; o reverse the current trend of environmental pollution on the island and in its coastal zone; o support Government efforts to implement priority institutional and technical measures identified in the Sewerage Master Plan.
In addition to the above projects, a few PPP transactions are presently in preparation or under consideration by the relevant authorities, according to news collected from business specific public sources. In addition basically in each country similar deals are being studied both for bulk supply and distribution services. In Uganda the government was planning a lease contract following the end of the present management contract this year for the National Water and Sewerage Company (NWSC). NWSC is responsible for the provision of water supply and sewerage services in fifteen towns of Uganda.
Concerning related industry a number of key categories of products, technologies and services exist whose suitability may be already assumed on the basis of the foreseeable short term development in the water service business in EAIO. On one side, they represent sectors in which specialised EU SMEs have often developed advanced technologies and innovative solutions. On the other, they relate to the critical needs in the region as commonly identified and tackled by international development agencies and specialised research institutions:
Water and wastewater treatment technologies and equipment , including basic disinfection apparatus. Increasing the safety of water supply and reduce environmental pollution are among the most important objectives targeted in the improvement of water systems.
Metering systems . Measuring of bulk and retail water flows is pivotal for boosting efficiency in water services including water loss control, demand management and effective tariff settings.
Customer Relations Management, billing and credit management . New technologies in such area are extremely useful both for enhancing quality of services and for revenue recovery.
IT and automation applications for utilities . Introduction of Geographical Information Systems, Management Information Systems and Supervisory Control and Data Acquisition also is a typical step in restructuring of water utilities.
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BUSINESS OPPORTUNITIES IN RELATED INDUSTRIES
The provision of water, power and transportation services is based on the setting up of a performing infrastructure and on the deployment of an efficient management. This involves 3 main categories of interrelated activities that can be categorised as follows, although it is obvious that no clear-cut borderlines can be drawn.
Engineering and construction : it concern the building up/rehabilitation/enlargement of the infrastructure required to meet demand for public and transportation services and growing environmental requirements while exploiting available natural and energy resources in a multiple-use competition context.
Manufacturing of industry components: it concerns the production and sale of industry components to be installed as part of the infrastructure or utilised in its operation.
Technology, services and products : it concerns the supply/production and sale of ancillary services, technologies and products that are required for or enhance the provision of the utility itself.
ENGINEERING AND CONSTRUCTION
The EAIO engineering and construction market is basically based on public procurement and largely on international donor funds although a number of BOT (Build – Operate – Transfer) projects have been developed lately such as the Khartoum water supply scheme in Sudan awarded to Biwater in 2005. In fact over the last decade the infrastructure sector has seen the introduction of new funding mechanisms involving participation of private capital through concession contracts. Typical business arrangement are BOT schemes structured in project financing in which funds are provided by the industrial sponsors (generally a construction contractor and an operator) and by the private capital market with non recourse debt facilities secured on the project expected revenue cash flows.
Beside their traditional design and supervision role, specialised consulting engineering firms often take up a distinctive and central role in PPP (Public Private Partnerships) as technical advisors of either the contracting authority or the private sponsors. Conceptual devising of contractual and operational framework of the transaction as well as evaluation of performance targets (for performance-based contracts) and investment programmes (for concession-type deals) is pivotal in the elaboration of successful privatisation processes and in preparation of sound bids.
A number of international consulting companies have been specialising in the field and in some cases have also developed direct expertise in operation and recovering of disrupted water utilities.
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A selection of these firms already operating in EAIO is:
Mott MacDonald (UK) Black&Veach (UK) Halcrow (UK) Gauff Ingeneurs (DK) WS Atkins(UK) Lahmeyer International (DK) C. Lotti&Associati (IT) Safege (FE) Studio Galli – SGI (IT) CPCS Transcom
Construction groups also play a relevant role in PPPs projects as these deals often involve major construction tasks. This applies particularly in BOT initiatives financed under project finance arrangements that are typically developed by joint ventures comprising international and local construction partners together with an operator and, in some cases, an engineering firm for design and supervision and financial parties. The success of these ventures rests in the optimal allocation of tasks, responsibilities and project risks so to secure the revenue stream from the business, giving access to non recourse or limited recourse debt. According to project finance structure building contractors also assume an investor role holding stakes in long-term concession contracts.
In general recent industry trends steer in the sense of binding building and management together as many construction contracts include start-up and an of operation period (such as the Design, Build and Operate scheme) and contract award is based on lowest overall capex and opex cost.
Main EU contractors that have been active in the region include:
Vinci (FR) WABAG – VA TECH (AU) Bouygues (FR) Impregilo(IT) Degrémont (FR) Astaldi (IT) OTV (FR) Salini (IT) ACS-Sacyr (ES) Dragados (ES)
MANUFACTURING OF INDUSTRY COMPONENTS / SERVICES , TECHNOLOGIES AND PRODUCT
Market demand for industry component is basically linked to infrastructure projects concerning new constructions, enlargements, rehabilitations and extraordinary and ordinary maintenance. Likewise to construction, procurement is mostly public as are utility services in EAIO.
Similar considerations may apply to the technology and advanced services sector. However the spreading of private sector in public services and transport through outsourcing and management and lease contract is increase demand for innovative technology from private entities, which are often more prone to introduce innovative business solutions.
In EAIO offer for water technologies and related products represents a growing market in which South African firms are taking the lead. Know-how developed in Europe in the water sector has
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large potential on the international markets while low-technology lighter industrial components suffer stiffer competition from manufacturers in emerging economies.
The manufacturing and supply sector for the utility industry embraces quite a broad spectrum of different categories of industry components, technologies and products. However there are a number of categories that have expectably the largest potential of growth in EAIO: IT applications, technologies for energy saving and renewable energies ticketing and advanced customer services logistics and handling systems safety and security equipment CRM-metering-billing-sales, communications systems, automation, remote sensing and control,
Concerning the market competition for technology and advanced services for the public services industry some distinctive features can be inferred by the analysis of attendance to the specialised business fairs annually held in the African continent 1.
Global groups such as ABB, SAP, Schlumberger, Schneider Electric, OTT, etc. operate through their local subsidiaries very often based in Johannesburg.
South African suppliers are very active leveraging on the experience and dimension of their national home market, especially in the sector of metering system and prepayment billing solutions.
Most of European medium and small players come from France and UK, taking advantage of language proximity and historical links sustained by the aid policies of their respective national development agencies (AFD and DFID). Some exception concern German technology suppliers, while Italian and Spanish companies are virtually absent.
A local market for management services and optimisations for public service utilities is not yet fully developed. Activities such as leak detection, laboratory analysis, system audits, energy saving services, Customer Relations Management services are still offered only by international general engineering and consulting firms (Lysa, Lotti, Lahmeyer) although a few South African company are now entering in the market (i.e. Netgroup Solutions).
1 Water Africa Sub Sahara; Metering, Billing, CRM/CIS Africa; Africa Energy Forum; etc.
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ANNEXES
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LIST OF PPP S IN EA&IO IN THE WATER AND POWER SECTORS
Project Name Type of PPI Project Status Sector Main Sponsors
Electricite et Eaux des Comores Concession Cancelled Potable Water, Electricity Veolia Environnement
Iberafrica Power Ltd. IPP Greenfield project Operational Electricity generation Union Fenosa
Cinergy Corp / Commonwealth Development Kipevu II IPP Greenfield project Operational Electricity generation Corporation
Mombasa Barge-Mounted Power Project IPP Greenfield project Operational Electricity generation Westmont Ltd.
Ormat Olkaria III Geothermal Power Plant IPP Greenfield project Operational Electricity generation Ormat Turbines Ltd (phase 1)
Belle Vue Power Plant IPP Greenfield project Operational Electricity generation Harel Freres / SIDEC
MechMar Energy Sdn Bhd / VIP Engineering and Independent Power Tanzania Ltd IPP Greenfield project Operational Electricity generation Marketing Ltd AES Corporation / Tanzania Development Finance Songo Songo IPP Greenfield project Operational Electricity generation Corporation
Tanwat Wood-Fired Power Plant IPP Greenfield project Operational Electricity generation Commonwealth Development Corporation
Tanzania Electricity Supply Company Management contract Cancelled Electricity Net Group Solutions (TANESCO) National Water and Sewerage Corporation Management contract Operational Potable Water and Sewerage Suez (NWSC)
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LIST OF PPP S IN EA&IO IN THE TRANSPORT SECTOR
Financial Country Closure Project Name Type of PPI Project Status Sector Segment Main Sponsors Year Jomo Kenyatta Airport Cargo Greenfield Kenya 1998 Operational Airports Terminal African Cargo Handling Terminal project Management Kenya 1996 Mombasa Container Terminal Cancelled Seaports Terminal Hutchison Whampoa Ltd contract Greenfield Kenya 1998 Mombasa Grain Terminal Operational Seaports Terminal Mersey Docks & Harbour Company plc project Greenfield Kenya 1998 Mombasa Grain Terminal Operational Seaports Terminal project Management Madagascar 1991 Madagascar Airport System Operational Airports Runway and terminal Aeroports de Paris / Suez contract Fixed assets, freight, and Commonwealth Development Corporation / Madagascar 2001 Malagasy Railway Concession Operational Railroads intercity passenger Spoornet Fixed assets, freight, and Edlows Resources / Mozambique Rail Company / Malawi 1999 Malawi - Nacala Railway Concession Operational Railroads intercity passenger Railroad Development Corp. Greenfield Harel Mallac & Co. / Ireland Blyth / Rogers & Mauritius 1997 Freeport Operations Mauritius Operational Seaports Terminal project Co. / Mauritius Chemical Fertiliser Industry Mauritius Freeport Greenfield Mauritius 1997 Operational Seaports Terminal Mauritius Freeport Development Co. Development Co. project Dar-es-Salaam Container International Container Terminal Services Inc. / Tanzania 2000 Concession Operational Seaports Terminal Terminal Vertex Greenfield South Africa Infrastructure Fund / Trans Africa Tanzania 1998 Kidatu Transhipment Facility Operational Railroads Fixed assets project Coast Corporation Kilimanjaro International Tanzania 1998 Concession Operational Airports Runway and terminal Inter Consult / Mott MacDonald Airport
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PIPELINE OF THE WORLD BANK IN THE WATER , POWER AND TRANSPORT SECTORS FOR EA&IO
PROJECT PROJECT CLOSING PROJECT PROJECT NAME COUNTRY COST SECTOR ID DATE STATUS (M USD) Water, sanitation and flood P070073 Nile Transboundary Environmental Action Project Africa 30-Sept-08 43,6 Active protection P057929 Eritrea Power Distribution & Rural Electrification Project Eritrea 30-Jun-09 57,2 Active Power P034154 Ports Rehabilitation Project Eritrea 30-jun-05 36,6 Active Ports, waterways and shipping P050357 Road Sector Development Program, Phase 1 Eritrea N/A 120 Proposed Roads and highways P049395 Energy Access Project Ethiopia 31-Dec-07 199 Active Power P000736 Energy Project (02) Ethiopia 30-Jun-05 295 Active Power P044613 Ethiopia Road Sector Development Phase 2 Ethiopia 30-Jun-09 219 Active Roads and highways P076735 Ethiopia Water Supply and Sanitation Project Ethiopia 31-Mar-10 120 Active Water supply P000755 Road Sector Development Program Support Project Ethiopia 31-May-05 538 Active Roads and highways Road Sector Development Support Programme M II P082998 Ethiopia N/A 255,9 Proposed Roads and highways (RSDSP II-APL 2) P083131 Energy Sector Recovery Project Kenya 31-Mar-10 225,5 Active Power Nairobi Water and Sewerage Institutional Restructuring P049618 Kenya 30-Jun-07 16,8 Active Water supply Project P082615 Northern Corridor Transport Improvement Project Kenya 31-Dec-09 275 Active Roads and highways P001319 Urban Transport Infrastructure Project Kenya 30-Jun-05 155 Active Roads and highways P001533 Energy Sector Development Project Madagascar 31-Dec-04 132,5 Active Power
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PROJECT PROJECT CLOSING PROJECT PROJECT NAME COUNTRY COST SECTOR ID DATE STATUS (M USD) P074659 Energy Services Delivery Project Madagascar N/A 160 Proposed General energy sector P083351 Integrated Growth Poles Madagascar N/A 125 Proposed Ports, waterways and shipping P048697 Regional Urban Works Project Madagascar 30-Jun-05 45,8 Active Transportation P073689 Rural Transport Project Madagascar 30-Jun-09 300 Active Roads and highways P001564 Rural Water Supply and Sanitation Pilot Project Madagascar 30-giu-05 22,3 Active Water supply P082806 Transport Infrastructure Investment Project Madagascar 30-giu-08 842,49 Active Roads and highways P052208 Transport Sector Reform and Rehabilitation Project Madagascar 31-lug-05 66 Active Transportation P001921 Environmental Sewerage and Sanitation Project Mauritius 30-giu-05 65,6 Active Sewerage P047762 Rural Water Supply and Sanitation Project Rwanda 30-giu-06 27,65 Active Water supply P045182 Rural Water Supply and Sanitation Project Rwanda 31-dic-06 21,42 Active Water supply P078387 Central Transport Corridor Project Tanzania 31-dic-09 138,07 Active Railways P059073 Dar es Salaam Water Supply and Sanitation Project Tanzania 31-dic-08 164,6 Active Water supply P002770 Integrated Roads Project (02) Tanzania 30-giu-05 582,4 Active Roads and highways Songo-Songo Gas Development and Power Generation P002797 Tanzania 31-mar-06 296 Active Power Project P074624 Tanzania Emergency Power Supply Tanzania 31-ago-05 110,8 Active Power P055120 Transport Sector Support Program Tanzania N/A 3000 Proposed Roads and highways Water, sanitation and flood P002758 Urban Sector Rehabilitation Project Tanzania 31-dic-04 105 Active protection P063834 Bujagali Private Hydropower Development Project Uganda N/A 115 Proposed Power P072090 Energy for Rural Transformation Project Uganda N/A 75 Active Power
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PROJECT PROJECT CLOSING PROJECT PROJECT NAME COUNTRY COST SECTOR ID DATE STATUS (M USD) P070222 Energy for Rural Transformation Project Uganda 31-ago-06 12,12 Active Power P069996 Energy for Rural Transformation Project Uganda 31-ago-06 111,24 Active Power Kampala Institutional and Infrastructure Development P078382 Uganda N/A 90 Proposed Roads and highways Project P002984 Power Project (04) Uganda 31-dic-04 89,34 Active Power P002970 Road Development Project Uganda 31-dic-04 119,94 Active Roads and highways Road Sector Institutional Support Technical Assistance P049543 Uganda 31-dic-05 33 Active Transportation Project P065436 Second Phase Of The Road Development Program Uganda 30-giu-06 97 Active Roads and highways P074079 Third Phase Of The Road Development Program Uganda N/A 133 Proposed Roads and highways P078024 UG Bujagali Hydropower Project-Guarantee Uganda N/A 115 Active Power P083708 National Road Maintenance Reform Project Uganda N/A 80 Proposed Roads and highways
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PIPELINE OF THE AFRICAN DEVELOPMENT BANK IN THE WATER , POWER AND TRANSPORT SECTORS FOR EA&IO
Total COUNTRY PROJECT NAME M USD Ethiopia Rural water supply and sanitation 21-Dec-05 62,0 Kenya Rift Valley Water Supply and Sanitation Project 07-lug-04 27,7 Madagascar Toliari Province Road Project 07-lug-04 50,7 Madagascar Madagascar: Rural Drinking Water Supply 21-Dec-05 111,9 Rwanda Projet de route Gitarama- Ngorero -Mukamira** 20-Dec-04 23,3 Tanzania Zanzibar Roads Upgrading Project 09-Jun-04 26,0 Tunisia Classified Road Network Rehabilitation Project - Phase IV 24-Nov-04 215,0 Uganda Small Towns Water and Sanitation Project 24-Nov-04 28,2 Multinational NBI: Nile Basin Wide Water Sector Capacity building project 06-Oct-04 3,2 Multinational Feasibility Study on the Isaka-Kigali Railways Project (Rwanda / Tanzania) 20-Oct-04 2,5 Multinational Ethiopia-Djibouti Interconnection Project 13-Dec-04 59,0 Multinational Kenya/Ethiopia/Isiolo/Moyale Road 13-Dec-04 55,4
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