66332 PPI data update note 61 August 2011 Private activity in infrastructure in Sub-Saharan Africa remained stable in 2010 In 2010, 13 infrastructure projects with private participation reached financial or contractual closure in 11 low- and middle-income countries, involving investment commitments of US$1.5 billion (table 1). 1 Infrastructure projects implemented in the 1990–2009 period attracted new investment of US$11.1 billion, bringing total investment commitments (hereafter, investment) to infrastructure in the region to US$12.6 billion in 2010. 2 This level of activity is similar to the one reported in 2009, which saw 11 projects and US$12.6 billion in total investment. In 2010, investment in new projects increased by 21% compared with 2009 while investment in previously implemented projects declined by 3%. Most of the private activity was concentrated on greenfield projects (BOT, BOO, merchant, or rental assets), which attracted 79% of regional investment and five of the thirteen of new projects in 2010. The rest of the investment went primarily to divestitures (figure 1). Nigeria and South Africa accounted for 41% of regional investment in 2010, but South Africa implemented only one new project and Nigeria had no new project. Figure 1 Investment in PPI projects in Sub-Saharan Africa, Figure 2 Investment in PPI projects in Sub-Saharan Africa, by type of PPI, 1990‒2010 by sector, 1990‒2010 2010 US$ billions* Projects 2010 US$ billions* 15 50 15 12 40 12 9 30 9 6 20 6 3 10 3 0 0 0 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 Concession Divestiture Greenfield project New projects Energy Telecom Transport Water and sewerage Source: World Bank and PPIAF, PPI Project database. * Adjusted by US CPI. * Adjusted by US CPI. Source: World Bank and PPIAF, PPI Project database. Telecom had investments of US$12 billion which represents a 1% increase from the level in 2009. • Telecommunications accounted for 95% of the regional investment (figure 2). • Six countries implemented six new projects which attracted a total investment of US$850 million. Additional investment in previously implemented projects accounted for the remainder of the investment in the sector. • The new projects included the partial divestiture of three national operators in Angola, Chad and Zambia; a management contract for the national carrier in Ethiopia; and, two new mobile operators (one in Mozambique and the other in the Republic of Congo). • Nigeria and South Africa accounted for 42% of regional investment in telecom. • Investment went mainly to mobile operators (64%) and multi-service providers (33%). This note was written by Edouard Perard, Research Analyst, Finance, Economics, and Urban Development Department, Sustainable Development Network, World Bank. 1 The PPI Project Database currently uses the World Bank’s definition of low- and middle-income countries released in July 2010. Investment data are in 2010 US dollar, using the US CPI to adjust to 2010 values. 2 Data on infrastructure projects with private participation include primarily medium-size and large projects in low and middle income countries as reported by the media and other public sources. Small-scale projects are generally not included because of lack of public information. More information is available at http://ppi.worldbank.org/. 1 Energy had four projects in four countries and a total investment of US$370 million in 2010. This level of investment represents an 11% increase from the level in 2009. • The new projects involved a total generation capacity of 243 megawatts (MW) and included three greenfield power plants, a greenfield project to generate and distribute electricity, and a management contract for an integrated utility. • In Cameroon, the 216 MW Kibri power plant reached financial closure under a 20-year build-operate- transfer (BOT) agreement. In Liberia, a 5-year management contract was signed for the state-owned Liberia Electricity Corporation. In Senegal, the Saint-Louis-Dagana-Podor Rural Electrification project reached financial closure under a 25-year BOT contract. In South Africa, the 15 MW rental power plant NewCogen started operation under a 5-year agreement. Transport had three projects involving investment of US$250 million in 2009. This level of investment represents a 43% decline from the level in 2009. • In the Republic of Congo, the 25-year concession for the three airports in Brazzaville, Pointe Noire and Ollombo reached contractual closure. • In Liberia, the 25-year concession for the Port of Monrovia reached contractual closure, representing US$120 million in investment. • In Sierra Leone, the 20-year concession for the Port of Freetown Container Terminal reached contractual closure. The contract involves investment of US$130 million. Water and sewerage saw no project in 2010. 2 Table 1. Projects with private participation reaching financial or contractual closure in 2010 Energy Total Country Project name PPI Type and Subtype Segment Sponsors Investment* AES Corporation (56% / Cameroon Kribi Power Plant Greenfield project (BOT) Electricity generation 342 United States) Manitoba Hydro Liberia Electricity Corporation Management and lease contract Electricity distribution and Liberia Not Applicable International (100% / Management Contract (Management) generation Canada) Office National de Saint-Louis - Dagana - Podor Electricity distribution and l'Electricite (73% / Morocco), Senegal Greenfield project (BOT) 22 Rural Electrification generation International Finance Corporation (17%.) IPSA Group PLC (100% / South Africa NewCogen power plant Greenfield project (Rental) Electricity generation 6 United Kingdom) Telecommunications Total Country Project name PPI Type and Subtype Segment Sponsors Investment* Porturil Investimentos (40% / Angola), Modus Comicare- Angola Movicel Angola Divestiture (Partial) Mobile access 200 Comunicacoes e Imagem Lda (19% / Angola) Libya Africa Portfolio for Société de telecommunications Chad Divestiture (Partial) Fixed and mobile access 303 Investments (LAP) (60% / du Tchad (Sotel) Libya) Bintel (100% / United Arab Congo, Rep. Azur Congo Greenfield project (Merchant) Mobile access Not available Emirates) Management and lease contract France Telecom (100% / Ethiopia Ethio Telecom Fixed and mobile access Not applicable (Management) France) Viettel Telecom ( Vietnam), Mozambique Movitel Greenfield project (Merchant) Mobile access 29 SPI Holding (Mozambique) Libya Africa Portfolio for Zambia Zamtel Divestiture (Partial) Fixed access 319 Investments (LAP) (75% / Libya) 3 Transport Total Country Project name PPI Type and Subtype Segment Sponsors Investment* Brazzaville, Pointe Noire and Congo, Rep. Concession (BROT) Runway and terminal Not available Egis Group (100% / France) Ollombo Airports AP Moller - Maersk Group Liberia Port of Monrovia Concession (ROT) Terminal 120 (100% / Denmark) Port of Freetown Container Bollore Group (100% / Sierra Leone Concession (BROT) Channel dredging and terminal 130 Terminal France) Note: BOT= Build, Operate, and Transfer; BOO = Build, Own, and Operate; Concession (BROT) = Build, Rehabilitate, Operate, and Transfer; Concession (ROT) = Rehabilitate, Operate, and Transfer. *in current US$ millions Source: World Bank and PPIAF, PPI Database. 4