Transcript collaborating to address africa`s infrastructure challenges

COLLABORATING TO ADDRESS AFRICA’S
INFRASTRUCTURE CHALLENGES
by: Suresh Kantroo
10th
March 11, 2014
CII – EXIM BANK India Africa Conclave
ANGELIQUE INTERNATIONAL LIMITED
• Infrastructure is basic physical and organizational structures needed for
the operation of a society or enterprise, or the services and facilities
necessary for an economy to function.
• The term typically refers to the technical structures that support a
society, such as roads, bridges, water supply, sewers, electrical
grids, telecommunications, and so forth.
INFRASTRUCTURE
SCENARIO IN INDIA
Infrastructure Scenario In India
• Expanding investment in infrastructure can play an important counter
cyclical role.
• Under the area of the infrastructure development, projects & programs
are reviewed by giving stress on pure Public Private Partnership (PPP)
to ensure that the implementation does not suffer from the fund
crunch.
Advantages of PPP mode:
1.Maximizing Investment
2.Budgetary constraints removed
3.Development of standards of world class assets
4.Improved maintenance and management of assets
5.Provision of efficient services
6.Affordable prices through greater competition
7.Risk sharing
Infrastructure Scenario In India
A) Power Sector
• Size: Generation capacity-122GW, 590 billion units produced (1 unit = 1
Kwh).
India has the fifth largest electricity generation capacity in the world-Low
per capita consumption at 606 units which consists of:
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Coal-fired plants constitute-57%
Hydelpower-25%
Gas based-10%
Nuclear energy-3%
Renewable sources-5%
Infrastructure Scenario In India
B) Roadways: India has second largest Road
network, in the world.
•Total Length-3.3 Million Kms.
•Carry 65% of freight & 80% passengers.
•National highways constitute only 1.7%
of roads but carry about 40% of traffic.
• Important Development projects
• The Golden Quadrilateral connects Delhi,
Mumbai, Chennai and Kolkata (GQ-5846
kms of 4 lane highway)
• North-South & East-West Corridor (NSEW7142 kms of 4 lane highways) Four-laning
of 12,109 kms under NHDP-III -Program
for 6-laning of 6,500 kms of National
Highways under NHDP- V.
Infrastructure Scenario In India
C) Railways:
• About 64000 kms of rail network
• Connects 7083 stations
• Carry 22 million passengers & 2.50 million
tones of goods everyday.
• About 1.5 millions of workforce
Mission 2020 of Indian Railways:
• High speed rail travel.
• Raising the speed of regular passenger trains
from 100-130 kmph to 160-200 kmph.
• To develop 50 world class stations which can be
recognized internationally.
• Segregating passenger and freight tracks
completely.
Infrastructure Scenario In India
E) Telecommunication: 3rd largest
in the world & 2nd largest in Asia.
• Mobile subscriber base-936.12
million.
• Overall Tele- density 77.57%.
• Broadband Subscriber 13.42
million.
Market Dynamics:
• The Indian handset market size
of 200 million.
• Major handset makes –
Samsung, Micromax, Apple,
Nokia, Sony etc.
INFRASTRUCTURE
IN AFRICA
Infrastructure In Africa
• Infrastructure plays a key role in economic growth and poverty reduction.
• The lack of infrastructure affects productivity and raises production and
transaction costs.
• Lack of infrastructure in Africa is widely recognized.
• Road access rate is only 34 %, compared with 50% in other parts of the
developing world, and transport costs are higher by up to 100%.
• Only 30% of the population has access to electricity, compared to 70–90% in
other parts of the developing world.
• Water resources are underused. Current levels of water withdrawal are low,
with only 3.8% of water resources developed for water supply, irrigation and
hydropower use, and with only about 18% of the continent’s irrigation
potential being exploited.
• The Internet penetration rate is only about 6%, compared to an average of 40
% elsewhere in the developing world.
Infrastructure In Africa
Africa has Potential
• Africa has about 20% of the world’s land
mass and 16% of its population, but only
2.5% of its gross domestic product (GDP).
• Equatorial Guinea leads the continent
with a per capita GDP of more than
$20,000, while the Democratic Republic
of Congo and Liberia bring up the rear
with earnings of less than $400.
Infrastructure In Africa
Africa’s Infrastructure Challenges:
• Africa’s GDP growth not ALWAYS
congruent with poverty alleviation.
• There is growing infrastructure funding
gap in all scenarios.
• There is very little private sector
participation in infrastructure
development.
• Over-reliance on external finance for
infrastructure – and trade-offs on local
commodities & associated lack of local
finance.
Infrastructure In Africa
Growing infrastructure funding gap in all scenarios
Fiscal flows devoted to infrastructure
• On Infrastructure SSA
(Sub Saharan Africa)
spend 6-12% of GDP.
• Inefficiencies &
Infrastructure funding
gaps: Private sector
financing through
PPPs-Successful Case
of Telecom in many
SSA countries.
Infrastructure In Africa
All scenarios point to the increased of energy demand by 2040 and
therefore potential for growth investments and associated development
Africa need to invest to energy generation
By 2040:
• COMELEC will increase by 6.2%
pa (additional 298GW)
• SAPP will increase by 4.4% pa
(additional 129GW)
• WAPP will increase by 8.9% pa
(additional 90GW)
• CAPP will increase by 7.3% pa
(additional 26GW)
• EAPP will increase by 6.5% pa
(additional 140GW)
This shows a big investments of US$40.5b p.a. to 2040 to meet the forecast
energy demand
Infrastructure In Africa
Major infrastructure challenges in transport, which negatively impact on
trade & regional integration are being addressed
Underdeveloped transport infrastructure an impediment:
• % of road networks in good condition from 4% to 90%.
• Extension & maintenance problems (vehicle overloading, lack & poor
management of funds allocated to road network)
• Africa has highest accident rate vis-à-vis vehicles on the road
• African railways network has low density and different technical stds.
• Maritime transport accounts for 92-97% of Africa’s international trade (but
safety and security – piracy and & robbery of merchant ships)
• Underdeveloped inland waterways transport - few internationally-navigable
inland waterways
• Global share in air transport is very low and accounts for only 3 per cent of
the global traffic
Infrastructure In Africa
Gaps between net water requirements and available water resources
The limits of hydropower:
• Current capacity of hydropower plants
(operational and under construction) is
estimated to be 15,800 MW.
• By 2040, it is estimated that an additional
72,500 MW will have been commissioned in
the selected basins, two-thirds in the Congo
basin alone.
• Hydropower will represent only about 16% of
peak power demand in 2040 (about 694 GW).
• Even if the full hydropower potential of Africa
were exploited, it would cover no more than
35.1% of the forecast demand.
Present Infrastructure Scenario In Africa
Demand for information and communication technology through 2018
• Africa’s ICT sector will continue to grow rapidly
over the coming decades, with the lion’s share of
investment coming from private enterprise.
• But if those investments are to generate the
greatest possible economic benefit, several
conditions must be met:
• First, operators in every country must have
access to intercontinental bandwidth through
competitive gateways.
• Second, the regional fiber optic infrastructure
must be free of missing links.
• Third, Africa’s countries must complete their
telecommunications reforms at the national
level.
“I dream of the realization of the unity of Africa ,
whereby its leaders combine in their efforts to solve
the problems of their continent. I dream of our vast
deserts, of our forests, of all our great wildernesses”
― Nelson Mandela
Angelique International Limited
Partner in Infrastructure Development of Africa
OVERVIEW
Established: 1996
Turnover: US $ 250 million approx
An Engineering , Procurement & Construction (EPC) Company undertaking projects on
turnkey basis:
- Multilateral financial institution – World Bank, ADB, AfDB
- Government to Government bilateral credits through Exim Bank of India
- United Nations
ISO 9001:2008, ISO 14001: 2004 & OHSAS 18001:2007 certified company
Focus on Africa, Middle East, South Asia & South East Asia
AFRICA : Projects in over 25 Countries and 21 Overseas offices
Track record of more than 200 completed projects/contracts & 60 ongoing projects
SOME RECENT RECOGNITIONS
The highest honor of Mali, the “Commander De L’Ordre National Du Mali” conferred on our Late Chairman by the President of Mali in 2011 for recognition
of sustained efforts for co-operation between India and Mali
SOME RECENT RECOGNITIONS
Angelique awarded the “Niryat Shree” – Export Excellence Award for the year
2009-10 in the Engineering and non-metallurgical non-MSME category
by H.E. The President of India (05 Oct. 2012)
SOME RECENT RECOGNITIONS
Angelique received “Commendation for Strong Commitment to Excel”
in the CII-EXIM Bank Business Excellence Awards 2012 (02 Nov. 2012)
CORE COMPETENCE
Power
Water
Industrial
Projects
Irrigation &
Agriculture
Social
Infrastructure
Glimpses of Major Infrastructure
Projects
Glimpses of Infrastructure Projects - Energy
Ministry of Energy, DR
Congo
64 MW (4x16) Katende Hydro
Power Project
TURNKEY PROJECT
US$ 168 Million
Glimpses of Infrastructure Projects - Energy
Ministry of Energy, DR Congo
10.5 MW (3x3.5) Kokobola
Hydro Power Project
TURNKEY PROJECT
US$ 55 Million
Glimpses of Infrastructure Projects - Energy
Ministry of Infrastructure, Rwanda
28 MW (2x14MW) Nyabarongo Hydro Electric
Power Project
TURNKEY PROJECT
US$ 66 Million
Glimpses of Infrastructure Projects - Energy
Ministry of Mines and Energy, Burundi
2 x 10 MW (20MW) hydropower plant including
sub station and transmission lines
TURNKEY PROJECT
US$ 77 Million
Glimpses of Infrastructure Projects - Energy
National Electricity Corporation, Sudan
220 kV , Double circuit transmission line , Singa- Hawata- Gadarief - Gallabat
340 Km with 3 substations (2x 100 MVA)
Design , Engineering, Supply of Equipment, Supervision, Installation and
Commissioning
US$ 68 MN
Glimpses of Infrastructure Projects - Energy
Ministry of Mines, Energy & Water – Mali
Mali - Cote D’Ivoire Interconnection Project
(Transmission Line & Substation)
TURNKEY PROJECT
US$ 30 Million
Glimpses of Infrastructure Projects - Energy
Electricidade De Mozambique, Mozambique
Rural Electrification Project in Nampula, Zambezia,
Inhambane & Gaza Provinces
US$ 30 Million
TURNKEY PROJECT
Glimpses of Infrastructure Projects - Energy
Ministry of Energy, Sierra Leone
Solar Street Lighting
Project
TURNKEY PROJECT
US$ 26 Million
Glimpses of Infrastructure Projects - Water
Ministry of Rural Development, DR Congo
Ground Water Extraction Project
Supply of Water Well Drilling Rigs, Submersible Pumps and Hand Pumps,
Drilling of boreholes
US$ 25 Million
Glimpses of Infrastructure Projects - Water
GE PROYECTO, Equatorial Guinea
Potable Water Project for 3 cities
TURNKEY PROJECT
US$ 10 Million
Glimpses of Infrastructure Projects - Water
Ministry of Energy and Water Resources, Sierra Leone
Rehabilitation of existing portable water
facilities in 6 Communities
TURNKEY PROJECT
US$ 30 Million
Glimpses of Infrastructure Projects - ICT
Ministry of Information, Communication &
Technology, Swaziland
State of the art Information
Technology Park
TURNKEY PROJECT
US$ 20 Million
Glimpses of Infrastructure Projects - Transport
Ministry of Economy & Finance, Niger
Project Description :
Supply of 81 Nos. Buses, Transport Equipment and maintenance facilities
Project Scope
:
Supply of 8 Nos. Eagle VIP Luxury Buses, 8 Nos. Luxury AC Buses, 51 Nos. Falcon
City Buses, 14 Nos. Intercity Buses, 29 Nos. trucks, 199 Nos. tractors,
maintenance facilities
Contract Value
:
US$ 16.7 Million
Glimpses of Infrastructure Projects - Transport
Ministry of Transport, DR Congo
Project Description :
Supply of 115 Nos. Buses and maintenance facilities
Project Scope
:
Supply of 15 Nos. Falcon City Buses, 100 Nos. Eagle Midi Buses, repair and
maintenance workshop
Contract Value
:
US$ 6 Million
Glimpses of Infrastructure Projects - Transport
Ministry of Transport, Guinea
Project Description :
Supply of 100 Nos. Buses (70 City and 30 Intercity) and Maintenance facilities
Project Scope
:
Supply of Falcon City and Intercity Buses and establishment of maintenance
facilities at bus depot
Contract Value
:
US$ 8.5 Million
Glimpses of Infrastructure Projects - Transport
Ministry of Transport, Ghana
Project Description :
Supply of Railway Wagons and equipment
Project Scope
:
70 Nos. Mineral Wagons, track materials and testing equipment
Contract Value
:
US$ 13 Million
“We must invest in Infrastructure Development
and Rebuilding Communities to Create Job”
― Carol Moseley Braun
THANK YOU
Angelique International Limited
104 –107, Hemkunt Tower, 98 Nehru Place,
New Delhi – 110019, INDIA
Phone: +91 11 2641 5683 / 84 / 85
Fax: +91 11 2641 3876
wwwangelique-indiacom
Plot No 12, Sector 125, Noida 201 301, India, Tel : +91 120 419300, Fax : +91 120 4193272 to 75