Integrating Advanced Technologies into Global Water Infrastructure

Integrating Advanced
Technologies into Global Water
Infrastructure
World Water-Tech Investment Summit
March 2014
1
AfDB: financier & honest broker in infrastructure
development, transfer of skills &technology
AfDB Public Sector Window
 Finance technical assistance and capacity building
 Finance project preparatory studies
 Provide concessionary loan for government equity
contribution & guarantees
AfDB Private Sector Window
 Assist & counsel governments in project structuring
 Provide equity, sub-debt or loans to the project sponsor
 Provide risk management products to the project sponsor
2
Technology - a key determinant
of sustainable service provision
•
An integrated approach
to infrastructure
development and
management
•
Project structuring can
facilitate appropriate
technology through
choice of financing
modalities and
implementation approach
3
Needs for innovative technologies
Current focus
•
•
Water losses – technical &
commercial : African utilities
lose about 45% of water
produced
Energy efficiency – the
number one variable cost;
mitigating power shortages
Emerging focus
•
Treatment techniques for
large/small, centralized/
decentralized systems
•
Reuse: waste water, grey
water, by-products
Generally
•
O&M cost reducing/minimizing technologies
•
Comprehensive solutions, rather than a piece of equipment: joint ventures
4
Involvement of ODA agencies in
integrating innovative technologies
Research &
Dev.
Piloted
Scaled up
Pilots financed through special
initiatives – trust funds (African Water
Facility), small donor projects
Mainstreamed
Large investment projects
apply traditional/
mainstreamed technologies
The missing link !
Why do we not sufficiently finance
the scaling up of new technologies?
5
Barriers to integrating innovative technologies

High perception of Risk

Public finance with government/utility assuming all risk

Traditional designs; difficult to retrofit advanced
technologies

Comfortable with ineffective & fragmented
procurement processes

High cost technologies– especially O&M - hinder
affordable tariffs

Are decision-makers incentivized to integrate new
technologies?
“The greatest barrier to success is the fear of failure” Sven-Göran Eriksson
6
Scaling up advanced technologies:
Shifting risk & providing incentives
Exposure to
innovation for a
shift in mindset
Project
preparation &
Design
The human
factor
Be ready for
competitive
counterbid
• Sustainable services rather than infrastructure
• Emphasize life cycle cost
• Emphasize innovation in TORs & consultancy selection
criteria
Advanced
technologies
integrated
Unsolicited
bids
Implementation
Approach
Innovative
component
•
•
•
•
Shift from goods/works to services contracts
DBOs save time & encourage innovation
PPPs/BOT: Shift financing risk to private sector
Pre-financing for smaller contracts
Push the boundary: For traditional projects,
include at least an advanced technology
component
7
Thank You!
Malinne Blomberg
[email protected]
AfDB Projects starting up
Country
Project/Study
EUR mil
Burkina Faso
ASSAINISSEMENT QUARTIERS PÉRIPHERIQUES OUGADOUGOU
36
RDC
PROJET AEPA & RENF. INFRAS SOCIO-ECO RC
115
Guinea
ETUDE APPUI INST. RÉORGANISATION SNAPE
0.4
Nigeria
URBAN WATER REFORM & PORT HARCOURT WSSP
155
Sierra Leone
Senegal
Ethiopia
RURAL WATER SUPPLY & SANITATION PROJECT
PROJET SECTORIEL EAU & ASSAINISSEMENT
SUPPORT TO THE ONE WASH NATIONAL PROGRAM
30
27
73
Kenya
THWAKE MULTIPURPOSE WATER DEVELOPMENT PROGRAM
69
Lesotho
LESOTHO LOW LANDS WATER AND SANITATION
10
Mauritania
PROJET NATIONAL INTÉGRÉ EAU MILIEU PHASE 2
1
Mauritania
AIDE HUMANITAIRE D'URGENCE NOUAKCHOTT
0.6
Mauritius
TECHNICAL ASSIST FOR DAM DESIGN & CONSTR
0.3
Malawi
Mozambique
Swaziland
Zambia
RWSSI - NWDP II
EMERGENCY RELIEF - 2013 FLOODS
EZULWINI WATER SUPPLY AND SEWERAGE
RURAL WATER SUPPLY AND SANITATION II
25
0.8
17
15
9
AfDB 2015 Indicative Pipeline
Country
Project/Study
EUR mil
Ethiopia
Angola
SUPPORT TO THE ONE WATER, SANITATION AND HYGIENE NATIONAL PROGRAM
(OWNP)
WASTEWATER MGMT IN THE COSTAL TOWN STUDY
77
1
Seychelles
MAHE SUSTAINABLE WATER AUGMENTATION PROJECT
11
Morocco
Egypt
Zambia
XIII PROJET AEPA
ABU RAWACH WASTEWATER TREATMENT PLANT
LUSAKA SANITATION PROGRAM
77
55
33
Ghana
ACCRA SANITATION PROJECT
39
Mali
PROJET ASSAINISSEMENT DE BAMAKO
22
Nigeria
Nigeria
Benin
RURAL WATER SUPPLY & SAN. PROJECT, PHASE 2
Abuja Satellite towns multi-infrastructure
Reduction des pertes d’eau de la SONEB
66
150
17
Centrafrique
PROJET EAU & ASSAINISSEMENT DE BANGUI
Gabon
PROJET D'ASSAINISSEMENT DE LIBREVILLE
7
200
10