EU-Kenya Cooperation in the Infrastructure sector - European Business Council 24 th April 2018

Transcription

1 EU-Kenya Cooperation in the Infrastructure sector - European Business Council 24 th April

2 EU cooperation with Kenya The 11 th EDF National Indicative Programme (NIP) in Kenya concentrates on three focal areas for a total of 435 million EUR grants including 20 for rural roads project 11th EDF also has a regional envelope: EA-SA-IO RIP 2

3 EU cooperation with Kenya Many other instruments next to EDF: Infrastructure Trust Fund (ITF) Trust Fund for the Horn of Africa Foreign Policy Instrument Instrument contributing to Stability and Peace Non State Actors European Instrument for Democracy and Human Rights Continental programmes (AU-IBAR, PANAF) Research Sugar 3

4 The new framework of the External Investment Plan (EIP) NIP & RIP funds 4

5 The blending concept Blending is defined as the strategic use of a limited amount of EU financial support to mobilize financing from partner financing institutions and other sources (incl. private sector) to enhance the development impact of investment projects EU grant LEVERAGE Partner FI financing For each blending project, a lead financing institution is entrusted with budget implementation tasks 5

6 Transport sector Recently completed projects Project Eldoret-Malaba road (Northern Corridor), 120km Merille River-Marsabit road (corridor 'Cape Town Cairo'), 120km Budget Total budget: 112 million EUR EU contribution (10 th NIP): 81 million EUR Total budget: 135 million EUR EU contribution (10 th NIP): 88 million EUR 6

7 Transport sector Ongoing projects Project Nairobi Missing Links Rural Roads Tourist Roads Ahero-Isebania road (Tanzania Link), 172km Blending project with AfDB Budget Total budget: 41 million EUR EU contribution (10 th EDF NIP): 31 million EUR Total budget: 20 million EUR EU contribution (10 th EDF NIP): 15 million EUR Total budget: 20 million EUR EU contribution (10 th EDF NIP): 13 million EUR Total budget: 250 million EUR EU contribution (ITF): 10 million EUR + ongoing technical assistance to the transport sector, preparatory studies on urban mobility, grant to National Transport and Safety Authority 7

8 Transport sector Projects agreed, implementation yet to start Project Mombasa-Mariakani road, 30km Blending project with KfW and EIB Kitale-Morpus road (South Sudan corridor), 68km Blending project with KfW Rural roads in ASAL counties Blending project with AfD Mombasa Port berths upgrading Blending project with EIB and AfD Nairobi Urban Mobility Programme Blending project with KfW, EIB and AfD Budget Total budget: 138 million EUR EU contribution (ITF): 20 million EUR Total budget: 138 million EUR EU contribution (ITF): 25 million EUR Total budget: 150 million EUR EU contribution (11 th EDF NIP): 30 million EUR Total budget: 253 million EUR EU contribution (11 th EDF NIP): 19 million EUR Total budget: 300 million EUR EU contribution (11 th EDF NIP): 45 million EUR 8

9 Energy sector Ongoing projects Project Lake Turkana Wind 310 MW Blending project with EIB Last Mile Connectivity Blending project with AfD and EIB Geothermal Risk Mitigation Facility Blending project with KfW Budget Total budget: >500 million EUR EU contribution (ITF): 25 million EUR Total budget: 180 million EUR EU contribution (ITF): 30 million EUR Total budget: 100 million EUR EU contribution (ITF): 30 million EUR + very early stage ongoing technical assistance to Nairobi City County on preparatory work for a 40 MW Energy-from-Waste plant 9

10 Water/Sanitation sector Ongoing projects Project East and West Nairobi: water transmission, storage, distribution Blending project with KfW Nakuru County Sanitation Programme Lake Victoria WATSAN (Kisumu) Blending project with AfD and EIB Lake Victoria Water Management Programme subcomponent: Sanitation in informal settlements in Kisumu Blending project with KfW Budget Total budget: 35 million EUR EU contribution (10 th EDF Water Facility): 5 million EUR Total budget: 4 million EUR EU contribution (10 th EDF Water Facility): 3 million EUR Total budget: 60 million EUR EU contribution (ITF): 5 million EUR Total budget: 6 million EUR EU contribution (11 th EDF RIP): 2 million EUR Water/sanitation sector currently not a NIP priority. 10

11 Future projects? 60 mn EUR still in 11th EDF NIP on Infrastructure projects yet to be identified in the transport, energy and possibly housing sectors likely to be blending projects in the context of EU EIP Additional funds still available in 11th EDF RIP Infrastructure envelope 11

12 Main challenges During identification phase: concurrence to be found between GoK priorities, EU cooperation objectives and financing partners objectives and pipeline additionality of the EU grant to be demonstrated borrowing limits of GoK During implementation phase: delays in signature of agreements between GoK and financiers delays in GoK contribution disbursement land acquisition and resettlement issues some non-performing contractors 12