Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction, 19th – 23rd June 2006, Nairobi, Kenya. 1 1 Integrating RE & EE Projects

Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction, 19th – 23rd June 2006, Nairobi, Kenya. Training Course on Renewable Energy & Energy Efficiency for Poverty

Reduction, 19th – 23rd June 2006, Nairobi, Kenya. 1

1

Integrating RE & EE Integrating RE & EE Projects into ADB Projects into ADB

Operations Operations

Dr. Aimée BELLADr. Aimée BELLA

Module 13



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THE BANK

VISION

OBJECTIVES AND FUNCTION

CROSS SECTOTAL PRIORITIES

RE/EE PROJECTS THROUGH GEF Funding

OUTLINE



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PROFILE OF THEPROFILE OF THE

AFRICANAFRICAN

DEVELOPMENTDEVELOPMENT

BANKBANK

PROFILE OF THEPROFILE OF THE

AFRICANAFRICAN

DEVELOPMENTDEVELOPMENT

BANKBANK



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• ESTABLISHED IN AUGUST 1964ESTABLISHED IN AUGUST 1964• COMMENCED OPERATIONS ON COMMENCED OPERATIONS ON

11STST JULY 1966 JULY 1966• HEADQUARTERS IN ABIDJAN,HEADQUARTERS IN ABIDJAN,

COTE D’IVOIRECOTE D’IVOIRE• TEMPORARILY RELOCATED TO TEMPORARILY RELOCATED TO

TUNIS, TUNISIATUNIS, TUNISIA

• ESTABLISHED IN AUGUST 1964ESTABLISHED IN AUGUST 1964• COMMENCED OPERATIONS ON COMMENCED OPERATIONS ON

11STST JULY 1966 JULY 1966• HEADQUARTERS IN ABIDJAN,HEADQUARTERS IN ABIDJAN,

COTE D’IVOIRECOTE D’IVOIRE• TEMPORARILY RELOCATED TO TEMPORARILY RELOCATED TO

TUNIS, TUNISIATUNIS, TUNISIA

THE BANKTHE BANK



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THE BANK GROUP COMPRISES:THE BANK GROUP COMPRISES:

- AFRICAN DEVELOPMENT BANK (ADB)- AFRICAN DEVELOPMENT BANK (ADB)

- AFRICAN DEVELOPMENT FUND (ADF)- AFRICAN DEVELOPMENT FUND (ADF)

- NIGERIA TRUST FUND (NTF)- NIGERIA TRUST FUND (NTF)

THE BANK GROUP COMPRISES:THE BANK GROUP COMPRISES:

- AFRICAN DEVELOPMENT BANK (ADB)- AFRICAN DEVELOPMENT BANK (ADB)

- AFRICAN DEVELOPMENT FUND (ADF)- AFRICAN DEVELOPMENT FUND (ADF)

- NIGERIA TRUST FUND (NTF)- NIGERIA TRUST FUND (NTF)

African Development Bank GroupAfrican Development Bank GroupAfrican Development Bank GroupAfrican Development Bank Group



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• African Development Bank (ADB)

– Established in 1964

– Subscribed capital - US$ 33.54 billion

– 53 African and 24 non-African countries

• African Development Fund (ADF)– Established in 1972

– Subscriptions - US$ 19.98 billion

– Primarily financed by non-African countries

• Nigeria Trust Fund (NTF)– Established by Nigeria in 1976

– Total assets of US$ 572 million



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Africa

LibyaMadagascarMalawiMaliMauritaniaMauritiusMoroccoMozambiqueNamibiaNigerNigeriaRwandaS. Tome & PrincipeSenegal SeychellesSierra LeoneSomaliaSouth AfricaSudanSwazilandTanzaniaTogo TunisiaUgandaZambiaZimbabwe

AlgeriaAngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeCentral African Rep.ChadComorosCongoCote d’Ivoire D. R. CongoDjiboutiEgyptEquatorial GuineaEritreaEthiopiaGabonGambiaGhanaGuineaGuinea BissauKenyaLesothoLiberia

Europe

AustriaBelgiumDenmarkFinlandFranceGermanyItaly

Netherlands NorwayPortugalSpainSwedenSwitzerlandUK

North & South America

Argentina Brazil

Canada USA

Middle East

Kuwait Saudi Arabia

Asia

ChinaKorea

IndiaJapan

The Bank Group embodies an effective partnership for the development of Africa



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CONTRIBUTE TO THE ECONOMIC CONTRIBUTE TO THE ECONOMIC

DEVELOPMENT AND SOCIAL PROGRESS OF ITS DEVELOPMENT AND SOCIAL PROGRESS OF ITS REGIONAL MEMBER COUNTRIES INDIVIDUALLY REGIONAL MEMBER COUNTRIES INDIVIDUALLY

AND JOINTLYAND JOINTLY

CONTRIBUTE TO THE ECONOMIC CONTRIBUTE TO THE ECONOMIC

DEVELOPMENT AND SOCIAL PROGRESS OF ITS DEVELOPMENT AND SOCIAL PROGRESS OF ITS REGIONAL MEMBER COUNTRIES INDIVIDUALLY REGIONAL MEMBER COUNTRIES INDIVIDUALLY

AND JOINTLYAND JOINTLY

BANK’s MANDATEBANK’s MANDATEBANK’s MANDATEBANK’s MANDATE



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VISIONVISION

To promote sustainable economic and social development and reduce poverty in its regional member countries



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TO BE THE LEADING TO BE THE LEADING DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTION IN AFRICA INSTITUTION IN AFRICA DEDICATED TO PROVIDING DEDICATED TO PROVIDING QUALITY ASSISTANCE TO QUALITY ASSISTANCE TO REGIONAL MEMBER REGIONAL MEMBER COUNTRIES IN THEIR POVERTY COUNTRIES IN THEIR POVERTY ALLEVIATION EFFORTSALLEVIATION EFFORTS

TO BE THE LEADING TO BE THE LEADING DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTION IN AFRICA INSTITUTION IN AFRICA DEDICATED TO PROVIDING DEDICATED TO PROVIDING QUALITY ASSISTANCE TO QUALITY ASSISTANCE TO REGIONAL MEMBER REGIONAL MEMBER COUNTRIES IN THEIR POVERTY COUNTRIES IN THEIR POVERTY ALLEVIATION EFFORTSALLEVIATION EFFORTS

ADB’s VISIONADB’s VISIONADB’s VISIONADB’s VISION



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• BOARD OF GOVERNORSBOARD OF GOVERNORS

• BOARD OF DIRECTORSBOARD OF DIRECTORS

• TOP MANAGEMENTTOP MANAGEMENT• THE PRESIDENTTHE PRESIDENT• 5 VICE PRESIDENTS5 VICE PRESIDENTS

• BOARD OF GOVERNORSBOARD OF GOVERNORS

• BOARD OF DIRECTORSBOARD OF DIRECTORS

• TOP MANAGEMENTTOP MANAGEMENT• THE PRESIDENTTHE PRESIDENT• 5 VICE PRESIDENTS5 VICE PRESIDENTS

ORGANISATION STRUCTUREORGANISATION STRUCTUREORGANISATION STRUCTUREORGANISATION STRUCTURE



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• OPERATIONS COMPLEXESOPERATIONS COMPLEXES• PLANNING & RESEARCH COMPLEXPLANNING & RESEARCH COMPLEX• FINANCE COMPLEXFINANCE COMPLEX• CORPORATE MANAGEMENT COMPLEXCORPORATE MANAGEMENT COMPLEX• UNITS REPORTING TO THE PRESIDENTUNITS REPORTING TO THE PRESIDENT

• OPERATIONS COMPLEXESOPERATIONS COMPLEXES• PLANNING & RESEARCH COMPLEXPLANNING & RESEARCH COMPLEX• FINANCE COMPLEXFINANCE COMPLEX• CORPORATE MANAGEMENT COMPLEXCORPORATE MANAGEMENT COMPLEX• UNITS REPORTING TO THE PRESIDENTUNITS REPORTING TO THE PRESIDENT

ORGANISATION STRUCTUREORGANISATION STRUCTUREORGANISATION STRUCTUREORGANISATION STRUCTURE



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LENDING OPERATIONS STRATEGYLENDING OPERATIONS STRATEGYLENDING OPERATIONS STRATEGYLENDING OPERATIONS STRATEGY



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OBJECTIVES AND FUNCTION

Contribute to the economic development and social progress of regional member, individually and jointly;

Use resources at its disposal to finance investment projects and programmes, giving priority to projects which concern several member countries;

Mobilise resources through co-financing with bilateral and multilateral development agencies;

Promote international dialogue and understanding on development issues concerning Africa;

Promote government and private investment in Africa through policy reforms, and

Provide such technical assistance as may be needed in Africa for the selection, supply and preparation of development projects.



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STRATEGIC AREAS OF FOCUS

• Project quality in a more client-focused and competitive global economy.

• Environmental protection, sustainable economic growth and poverty reduction.

• Private sector promotion as well as the development of micro-enterprise initiative in Africa.

• Aid-coordination.



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FINANCIAL INSTRUMENT

Projects, programmes and studies:

•Agriculture, •Public utilities, •Transport and communication,•Industry •Social sector (education and health)•Private sector and Microfinance Institutions.

Since 1986 the Bank, non-project lending including

•Structural adjustment, •Policy based loans; and •Various forms of technical assistance and advise



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•CATEGORY A COUNTRIESCATEGORY A COUNTRIES• ADF RESOURCESADF RESOURCES• ADF LENDING CONDITIONSADF LENDING CONDITIONS

•CATEGORY B COUNTRIESCATEGORY B COUNTRIES• ADB RESOURCESADB RESOURCES• ADB LENDING CONDITIONSADB LENDING CONDITIONS

•CATEGORY C COUNTRIESCATEGORY C COUNTRIES

•CATEGORY A COUNTRIESCATEGORY A COUNTRIES• ADF RESOURCESADF RESOURCES• ADF LENDING CONDITIONSADF LENDING CONDITIONS

•CATEGORY B COUNTRIESCATEGORY B COUNTRIES• ADB RESOURCESADB RESOURCES• ADB LENDING CONDITIONSADB LENDING CONDITIONS

•CATEGORY C COUNTRIESCATEGORY C COUNTRIES

ADB GROUP’s CREDIT POLICYADB GROUP’s CREDIT POLICYADB GROUP’s CREDIT POLICYADB GROUP’s CREDIT POLICY



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At the Country Level• Agriculture and Rural Development• Human Resources Development (Education 1 Health) • Infrastructure Development (Energy, Transport, etc)• Private Sector Development

At the regional level• Governance, Regional cooperation• Environment & Gender

SECTORIAL PRIORITIES



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Country eligibility policy allows the Bank Group to support all African countries without compromising its financial condition

Can borrow from ADB (13 countries)

Can borrow from ADF (38 countries)

Can borrow from both ADB and ADF (2 countries)

• ADB provides financial assistance using its ordinary capital resources and funds raised from capital markets

• Country eligibility policy directs all new ADB lending towards low risk countries

• ADF complements ADB’s efforts by providing concessional funds for development projects to the poorer countries in the continent

• ADF is primarily financed by the 24 non-African countries that are members of the ADB

• ADF was replenished by US$ 5.4 billion in December 2004



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Bank Group financial assistance is maintainedat a level that ensures high quality operations



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Moody’s - Aaa

“… member countries’

support has been

demonstrated visibly … ”

Moody’s - Aaa

“… member countries’

support has been

demonstrated visibly … ”

FITCH – AAA

“AfDB capitalisation is

one of the highest among the MDBs…”

FITCH – AAA

“AfDB capitalisation is

one of the highest among the MDBs…”

S&P - AAA

“The bank’s franchise value should remain

high and its capital position

strong ... ”

S&P - AAA

“The bank’s franchise value should remain

high and its capital position

strong ... ”

JCR - AAA

“Smooth relocation to

temporary site in Tunis…”

JCR - AAA

“Smooth relocation to

temporary site in Tunis…”

STRONG AND RECOGNIZED INSTITUTION



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STRATEGIC SECTORS



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The Bank Group supports critical sectors in all regions of Africa



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HIPC Initiative – Heavily Indebted Poor Country Initiative

NEPAD – New Partnership for Africa’s Development

HIPC NEPAD Water

Key Development Initiatives

Focusing on critical initiatives for the continent

Decentrali-sation

STRATEGIC INITIATIVES

GEF



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NEPAD

Technical Support to NEPAD on Infrastructure:

Goal: The promotion of regional integration in Africa through the sharing of the production, management and operation of infrastructure facilities and through hubs, the development corridors or poles.

Targets: Bank was assigned the task to develop short-term and medium- to long-term action plans for Infrastructure under NEPAD.



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Goal: To contribute to the efforts to reduce poverty by expanding the capacity of African populations to access existing and future financing sources for water and improving the efficiency of such resources.

Targets: To raise US$ 615 million by 2009, to be disbursed in the form of grants.

These resources would catalyse an increase in public and private resources in support of water resources development.

Africa Water Facility



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Goal: To accelerate access to sustainable water supply and sanitation for rural populations within the framework of the Africa Water Vision.

Targets: To provide access to drinking water supply and sanitation to 66% of the rural population by 2010, increasing this to 80% by 2015, from the present 45%.

Initiative will initially be implemented on a pilot basis in a limited number of countries (five to seven). It will be up-scaled it to additional RMCs, incorporating lessons learnt from the pilot country programs.

Rural Water Supply and Sanitation Initiative



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• Decentralization strategy to assist more effectively • its Regional members countries

A program of opening gradually 25 fields offices from 1999 to the end of 2006.

The selection criteria are: 1. Quantitative. 2. Qualitative. 3. Governance situation in the country

1st batch offices are: Egypt, Ethiopia, Gabon and Nigeria. These countries are joined recently by Tanzania and Uganda. Gabon office covers Congo, Central African Republic and Equatorial Guinea.

2nd batch offices are: Mozambique, Senegal. Mozambique office will cover Botswana, Lesotho, Namibia, South Africa and Swaziland while the Senegal Office will cover Cape Verde, Gambia, Mauritania.

3rd batch offices are: Algeria, Democratic Republic of Congo, Ghana, Kenya, Madagascar, Mali, Morocco, Rwanda

4th batch offices are: Angola, Burkina Faso, Cameroon, Chad, Malawi, Sierra Leone, Zambia.

1st Batch (07 offices)including Tunisian office

2nd Batch (02 offices)

3rd Batch (08 offices)

4th Batch (07 offices)



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Total Cumulative Approvals, 1967-2005

2,988 loans and grants totaling UA 36.69 billion, of which UA 1.62 billion was in grants.

1 UA = USD 1.47



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Sector Approvals in 2005 alone

• Infrastructure: UA 687.1 million (39.4 percent of total approvals)

• Multisector: UA 264.4 million (15.2 percent of total approvals)• Agriculture and Rural Development: UA 231.1 million (13.3

percent of total approvals)• Social Sector: UA 233.7 million (13.4 percent of total

approvals)• Finance: UA 218.6 million (12.5 percent of total approvals)• Environment: UA 74.1 million (4.3 percent of total approvals)• Industry, Mining, and Quarrying: UA 34.0 million (2.0 percent

of total approvals)



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In total, 28 projects and programs totaling UA 688.6 million (79.3 percent of total ADB

operations) were approved for project loans, policy-based operations, Special Relief Fund, and debt relief operations.

Project loans were the main financing instrument for public sector operations and were allocated to promote the development of the physical and social infrastructure necessary for sustainable development and poverty reduction.

ADB Public Sector Operations



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Project lending in 2005 stood at UA 459.2 million, comprising five project loans for UA 321.1 million, and one line of credit for UA 138.0 million.

The five project loans were for (i) the Fisheries and Aquaculture Sector Support Project in Gabon, (ii) the Northern Plains Irrigation Project in Mauritius, (iii) the Gafsa Phosphates Company Capacity Building in Environmental Protection and

Phosphate Mining in Tunisia, (iv) the Ain Beni Mathar Solar Thermal Power Station Project in Morocco




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(v) the El Kureimat Combined Cycle Power Plant Project in Egypt. The line of credit approved was

the Second Line of Credit to the National Bank of Egypt to finance the SMEs Support Project (see Profiles of ADB-Approved Projects and Programs below). Two policy-based operations (UA 147.7 million) were approved for Tunisia.




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They comprised one sectoral adjustment loan (UA 50.0 million) for the Secondary Education Support Project, and one structural adjustment loan (UA 97.8 million) to support the implementation of government economic policies and orientations for private sector development.

In total, 17 grants (amounting to UA 5.8 million) were allocated from the Special Relief Fund for Emergency Operations (SRF) for operations in 16 countries. The relief funds for Djibouti,




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Burundi, Niger, Malawi, Mozambique, Swaziland, Zambia, and Zimbabwe were intended to help

reduce the suffering of the victims of drought in these countries.

Humanitarian and emergency assistance was provided to Burkina Faso, Chad, Niger, and

Nigeria, to help eradicate poliomyelitis, and to Egypt, to control the 2004 locust invasion. Somalia and Seychelles received emergency assistance for

victims of the December 2004 Asian Tsunami. Three debt relief operations (UA 76.0 million) were approved for Madagascar, Rwanda and Zambia.




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Global Environment Global Environment FacilityFacility

176 member countries

Addresses global environmental issues

Supporting national sustainable development initiatives.



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Facts about GEF

• $6.2 billion invested in grants • $20 billion generated in co-financing 1,800 projects • 140 developing countries • 6,000 small grants have been provided • up to $50,000 to NGOs.



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GEF’s Focal GEF’s Focal AreasAreas

1.1. Biodiversity lossBiodiversity loss

2.2. Climate change Climate change

3.3. Ozone layer depletionOzone layer depletion

4.4. International watersInternational waters

5.5. Persistent organic Persistent organic pollutantspollutants

6.6. Land degradationLand degradation



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Climate ChangeClimate Change

Removal of Barriers to Energy Removal of Barriers to Energy Efficiency and Efficiency and Energy ConservationEnergy Conservation

Promoting the Adoption of Promoting the Adoption of Renewable Energy Renewable Energy by Removing by Removing Barriers and Reducing Barriers and Reducing Implementation CostsImplementation Costs

Reducing the Long-Term Costs of Reducing the Long-Term Costs of Low Low Greenhouse Gas Emitting Greenhouse Gas Emitting Energy TechnologiesEnergy Technologies

Promoting Environmentally Promoting Environmentally Sustainable Sustainable Transport.Transport.



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Commitments Commitments 1991-2002 (USD)1991-2002 (USD)



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Allocation 1991-2003



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GEF GEF

FundingFunding

GEF funds a variety of project types, ranging from GEF funds a variety of project types, ranging from its:its: Small grant programme Small grant programme (< US $150,000) (< US $150,000) Project preparation grants Project preparation grants (PDF A, B, C)(PDF A, B, C)

Enabling activities Enabling activities (< US $500,000) Medium-sized projects Medium-sized projects (< US $1 million)(< US $1 million) Full-sized projects Full-sized projects (> US $1 Million)



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SGP (< US $50,000) complements the large and medium-sized project by providing a window for the direct participation of NGO SGP grants are channelled directly to CBOs and NGOs

Small grants programme



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Grants (< US $ 450,000) for enabling activities help countries to assess biodiversity and climate change challenges, from a national perspective with a view to prepare national inventories, strategies, and action plans.

Grants (< US $500,000) for POPs activities.

Enabling Activities



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PDF- Block A PDF- Block A up to $50,000 up to $50,000

PDF - Block B PDF - Block B up to $350,000 up to $350,000 for for single-single- country up to $700,000 for country up to $700,000 for muliple country projectsmuliple country projects

PDF - Block C PDF - Block C up to $1 million. up to $1 million.

Project Development GrantProject Development Grant



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MSP (< US $1 million). These grants are available through expedited procedures that speed processing and implementation and also increase GEF's flexibility in programming resources and encourage interested parties to propose and develop project concepts.

Medium-sized projects (MSP)



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Full-size projects (> US $1 Million) must be

consistent both with the country's national programs and priorities and with GEF's operational strategy and programs.

Full-sized projects



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ADB as Executing AgencyADB as Executing Agency

As of November 21, 2003, the GEF As of November 21, 2003, the GEF Council agreed that:Council agreed that:

• The AfDB Boards of Directors has The AfDB Boards of Directors has approved on 18 January 2005 the approved on 18 January 2005 the MOU and PFA.MOU and PFA.



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1.1. SecretariatSecretariat

2.2. Implementing Agencies: Implementing Agencies: UNDP, UNEP, UNDP, UNEP, World BankWorld Bank

Partner Agencies

3. 3. Executing AgenciesExecuting Agencies 4 RDBs: (AfDB, 4 RDBs: (AfDB, AsDB, EBRD, AsDB, EBRD, IDB, IDB, IFAD, FAO, UNIDOIFAD, FAO, UNIDO

4.4. Other agencies: Other agencies: UNOPS, NGOsUNOPS, NGOs



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GEF funds the "incremental" or additional costs associated with transforming a project with national benefits into one with global environmental benefits.

Project funding



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• For example, choosing solar energy technology over coal or diesel fuel meets the same national development goal (power generation), but is more costly.

• GEF grants cover the difference or "increment" between a less costly, more polluting option and a costlier, more environmentally friendly option.

Exemple



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ADB is on the stage



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POTENTIAL INVOLVEMENT OF THE BANK

Grant

Loan

Through GEF (ADB as an executing agency under all focal areas of intervention)



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Screen projects in the portfolio to identify

projects for GEF funding

Develop project proposals for GEF funding

Develop capacity

ADB portfolioADB portfolio



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ADB PROJET CYCLE



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THANK YOU

http://www.afdb.orghttp://www.afdb.org

http://www.thegef.orghttp://www.thegef.org

For information

Documents

Training Course on Renewable Energy & Energy Efficiency for Poverty Reduction, 19th – 23rd June 2006, Nairobi, Kenya. 1 1 Integrating RE & EE Projects