2016 Africa PPP Conference and Exhibition Post Show Report

Radisson Blu Portman Hotel | LONDON, UK
24-26 OCTOber 2016
ConFeRenCe & sHoWCase
Official Carrier EXHIBITOR
Bronze SponsorGOLD SponsorPLATINUM SPONSOR
www.africappp.com
DELIVERING INFRASTRUCTURE PPPs
FOR SUSTAINABLE AND INCLUSIVE GROWTH
CPD-Certified Pre-Conference Training
MANAGING PPP CONTRACTS FOR VALUE & IMPACT
POST SHOW REPORT

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th www.africappp.com
@africappp #africappp
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STATEMENT FROM THE ORGANIZING COMITEE ..................................................................................... 02
EVENT ATMOSPHERE IN PICTURES ............................................................................................................... 03
AFRICA PPP 2016 IN NUMBERS ....................................................................................................................... 04
SPECIAL FEATURES ............................................................................................................................................... 05
SPEAKERS ................................................................................................................................................................... 06
CONFERENCE PROGRAMME ............................................................................................................................... 08
TESTIMONIALS ......................................................................................................................................................... 10
ACKNOWLEDGEMENTS ........................................................................................................................................ 12
Official Conference Executive Summary ..................................................................................... 14
PRESS COVERAGE ................................................................................................................................................... 22
CONTENT
STATEMENT FROM THE ORGANIZING COMITEE
The 8th
edition of the Africa PPP was a resounding success with 42 speakers, 148 delegates from 23 countries in
attendance. Highly interactive discussions took place around the future development of PPP projects in Africa that can
and will enhance social and economic growth across the continent.
The key message throughout was the need to increase and reassess the level of partnerships across the board to build
a deeper sense of trust, cooperation and collaboration.
Thank you to all our sponsors, speakers, delegates and partners! Without your support, this event would not have been
possible. We look forward seeing you at the 9th
Africa PPP event, where we aim to include updates on the development
of the PPP project pipelines, host additional one-on-one meetings and increase the involvement of PPP units & project
developers from across Africa.
On behalf of AME Trade and the Africa PPP team
Emma Sayers
Senior Conference Producer
02 www.ametrade.org / africappp

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EVENT ATMOSPHERE IN PICTURES

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CAMEROON
COTE D’IVOIRE
EGYPT
ETHIOPIA
FRANCE
GHANA
INDIA
JAPAN
KENYA
MALI
MAURITANIA
MOROCCO
NIGERIA
SENEGAL
SINGAPORE
SOUTH AFRICA
SPAIN
SWITZERLAND
TURKEY
UGANDA
UK
USA
ZAMBIA
SPEAKERS SPONSORSMEDIA
PARTNERS
delegates COUNTRIES
41 15 3
148 23
AFRICA PPP IN NUMBERS
Participants’ Breakdown
MAP OF PARTICIPATING COUNTRIES
www.ametrade.org / africappp

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CPD-Certified Pre-Conference Training
Managing PPP Contracts For Value & Impact
As part of our on-going commitment to training programmes within the PPP arena, we hosted a CPD certified one-day
training workshop on Managing PPP Contracts for Value and Impact at the 8th Africa PPP Conference & Showcase.
During this highly interactive workshop, delegates gained insights into understanding the challenges of managing PPP
contracts, risk allocation, performance management frameworks, contract management structures, as well as how to
managing unsolicited bids.
SPECIAL FEATURES
The expert facilitators included:
Gori Olusina Daniel
Lead Transaction Advisor
Africa PPP Advisory
Chinyelu Oranefo
Senior Associate, Banking & Finance, Real Estate,
Nabarro LLP
James Aiello
Senior Project Advisor, PPP Unit,
National Treasury, South Africa
Chidi K.C.Izuwah Snr
ICRC, Federal Republic of Nigeria
The room was full to capacity and lead to informative and proactive discussions throughout the day.
05
Investable Infrastructure Projects
Round-Robin
A new addition to the Africa PPP programme was the introduction of the Investable Infrastructure Projects Round-Robin session.
During the pre-booked on-on-one meetings, potential investors, funders and project developers took the opportunity to
speak further with PPP Units from Kenya, Cameroon, Nigeria, Uganda and Ghana. The Zambezi River Authority’s Chief
Executive Officer was also on hand to showcase the Batoka Gorge HES project.
Companies used this time to ascertain additional information and discuss possible funding and development of the relevant
bankable PPP projects pitched during earlier in the day.
36 meetings took place during the round-robin and generated new contacts for growing partnerships.

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Gori
Olusina Daniel
Lead Transaction
Advisor,
Africa PPP Advisory
Cyprian Marowa
General Manager
Infrastructure
Finance and Funds
Investment,
Development Bank
of Southern Africa
(DBSA)
Chinyelu Oranefo
Senior Association,
Banking & Finance,
Real Estate,
Nabarro LLP
James Aiello
Senior Project
Advisor, PPP Unit,
National Treasury,
South Africa
Tom Minney
African Growth
Partners Ltd
Mahad Ahmed
Founder and
Managing Director,
AME Trade
Anas Charafi
Investment Officer,
Africa50
Angela Nalikka
Manager,
Infrastructure
Finance and PPP
Division, AfDB
Christopher
Millward
Senior Underwriter,
Acting Regional Head,
Europe and MENA
Matthew Rees
Director of the
Office of
Partnerships,
Power Africa, USAID
Aboubacar Guissé
Technical Adviser
on Legal Issues
and Institutional,
Ministry of Investment
Promotion and
Private Sector, Mali
Eng Ziria Tibalwa
Waako, Director,
Technical Regulation,
Electricity
Regulatory Authority,
Uganda
Atter Ezzat
Hannoura, Director,
PPP control Unit,
Ministry of Finance,
Egypt
Ana Hajduka
Founder & CEO,
Africa GreenCo
Chidi K.C. Izuwah Snr
Executive Director,
The Presidency,
Infrastructure
Concession Regulatory
Commission, Nigeria
Jack van der
Merwe
Chief Executive
Officer, Gautrain
Paul Horrocks
Lead Manager,
Private Investment,
OECD
Romain Py
Head of Transactions,
AIIM (African
Infrastructure
Investment Managers)
William Michael
Dachs
Chief Operating
Officer, Gautrain
Ekow Coleman
Senior Investment
Officer, Ghana
Infrastructure
Investment Fund (GIIF)
Jing Li
Senior Investment
Officer,
Infrastructure
Finance and PPP
Division, AfDB
SPEAKERS

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Sheila Galloway
Group Chief Executive
Officer, Utho Capital
Naoll Mary
Country Manager,
Egypt, FCC Aqualia
Kweku Korateng
Senior Investment
Officer,
Infrastructure
Finance and PPP
Division, AfDB
Stanley Kamau
Director, PPP Unit,
Ministry of Finance,
Kenya
Dieudonne
Bondoma Yokono
President,
Support Council for
the Realisation of
Partnership Contracts
(CARPA), Cameroon
Beatrice Florah
Ikilai
Acting Director,
PPP Unit, Ministry of
Finance, Planning and
Economic Development
Uganda
Liesel Lombaard
Chief Director,
Gauteng
Infrastructure
Financing Agency
Mark Flower
Director,
Fluor,
South Africa
Paritosh Gupta
Chief Executive
Officer, IL&FS
Tony Clamp
Managing Director,
Compass
Infrastructure
Junglim Hahm
Regional Program
Leader, East & South
Africa, Middle East,
Public Private
Infrastructure
Advisory Facility
(PPIAF)/World Bank
John Seed
Head of
Infrastructure
Finance, Europe,
Russia & Africa,
Mott MacDonald
Alex Katon
Executive Director,
InfraCo Africa
Eng. M C
Munodawafa
Chief Executive
Officer,
Zambezi River
Authority
Joan Miquel
Vilardell
Partner,
ALG Global
François Serres
Lawyer, Francois
Serres & Associates
Hannes van Wyk
Managing Director,
Toll Infrastructure
Services
Jacqueline
Odoula-Lyakurwa
Activities Coordinator,
African Development
Institute, African
Development Bank
Peter Robinson
Director for Africa
Region, Economic
Consulting
Association (ECA)
Joanne Foley
Executive Director,
Willis Towers Watson
Heleen Gossard
Associate,
RisCura
w
SPEAKERS

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Monday • 24th
OCTOBEr
Pre- Conference Training
MANAGING PPP CONTRACTS
FOR VALUE AND IMPACT | CPD Certification
(Pre-registered participants only)
Tuesday • 25th
OCTOber
Conference Day 1
Registration and Welcome Coffee
Official Conference Opening
and Plenary Session
Welcome Remarks :
Angela Nalikka, Manager, Infrastructure Finance and
PPP Division, African Development Bank (AfDB)
Chris Millward, Acting Regional Head, Europe &
MENA, MIGA
Anas Charafi, Investment Officer, Africa50
Matthew Rees, Director of the Office of Partnerships,
Power Africa, USA
Coffee Break
SESSION 1:
Harmonisation in PPP Policies
and Regulatory Frameworks
Session Focus: Africa’s infrastructure can be improved
by public and private pooling financial resources and
expertise to advance much needed infrastructure projects
and delivery of basic services. However, governments
need to simplify PPP policies, set standards and develop
solid legal frameworks for PPP readiness. Panellists on this
session will discuss current PPP policies, what is working
and what needs to be improved on to encourage more
public-private partnership developments focusing on the
High 5 priorities.
SESSION 2:
Investing in Infrastructure
– Financing priority PPPs
Session Focus: Africa’s infrastructure gap is estimated at
a cost of US$90bn per annum, around the crucial areas
such as energy, agriculture, industrialisation, cross-border
integration, and social and economic improvements.
During this session, speakers will discuss the different
sources of funding available for PPP projects and the
criteria needed to ensure that the project will produce
sufficient cash flow to service the debt.
Luncheon

SESSION 3:
Best Practice Scenarios - Successful
PPPs in Africa
Session Focus: Africa is achieving many successful PPP
projects as skills and capacity improve and examples of
best practice and lessons are shared across the continent.
The Gautrain in South Africa is a good example of what
PPP can achieve in transforming cities and lives, and is
busy readying for further expansion. This session will
highlight leading PPP success stories across the continent
and discuss how lessons learned are best shared.
Session 4: FOCUS SESSION
Project Pitch of Investable
Infrastructure Projects
Session Focus: PPP Units and Government Entities from
across Africa will highlight their pipeline projects that
are in development phase or near financial close and
showcase their offerings directly to project developers
and investors alike.
Coffee Break
Session 5:
Close of Day 1 proceedings
Official Cocktail Reception – Sponsored by AfDB
During this interactive
session, potential investors,
funders and project
developers will have the
opportunity to speak
with the PPP Units and
Government Entities
directly in a round-robin
format. Companies will be
use this time to ascertain
additional information and
discuss possible funding
and development of the
relevant PPP projects
pitched in the previous
session.
South Africa has
aggressivelybeenworking
towards increasing
infrastructure PPPs –
including renewable
energy, transport, roads
amongst others. During
this interactive debate,
panellists will delve into
the strategies being
implemented to foster
development for the
benefit of the country
and communities alike.
Investable
Infrastructure
Projects Round-Robin
South Africa Focus
Panel Discussion
PROGRAMME

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Tuesday • 26th
OCTOber
Conference Day 2
Keynote Address:
Lessons from India – The World’s
largest PPP market
Session Focus: India has been actively providing
various African countries with support and advice
on PPPs in Infrastructure projects. This session will
showcase developments in India over the last few
years in innovative investment vehicles for financing
of infrastructure, the systems in place that have made
India a leader in operationalizing PPPs, options for PPP
structures, the lessons learnt by India. It will also provide
guidance to participants on the important issues such
as design of PPP policies and approaches for capacity
building at the public sector.

Session 6:
Project Preparation Facilities role in
accelerating a pipeline of Bankable PPPs
Session Focus: Project Preparation Facilities have
been created to coordinate efforts for the support of
national and regional infrastructure development in
Africa and assist in preparing, structuring and placing
PPPs in the market to attract private sector investment
and prioritize infrastructure projects with regional
cooperation, sustainable development, and climate
change elements.
Coffee Break

Session 7
Working towards Integrating
Africa’s priority PPPs
Session Focus: Taking an integrated approach to
infrastructure mega projects is vital for the industrial
and social development of Africa as a whole.
13:00 Luncheon
Session 8
Social and Economic Capacity Building
– Tools to improve quality of life for
the people of Africa
Session Focus: Inclusive growth is essential for the long-
term success of PPPs, because the “public” part of the
partnership involves popular and voter opinions. People
need to feel their expectations are being met and they
can see concrete results and improvements. Community
resistance can block PPPs or prevent them operating
effectively. This session reviews best practice for PPP
projects in engaging communities and ensuring they
understand the long-term benefits, and can witness
improvements to their livelihoods, skills and capacity
building, and opportunities via:
• Supporting technological transfer and capacity building
• Accelerating social and economic growth
• Shaping PPPs to lead to inclusive growth
• Promoting entrepreneurship
Coffee Break
Session 9
Live Streaming of Debate:
Risk and Reward – Why PPPs need to
continue to grow
• Effectively combining the strengths and resources of
both the public and private sectors
• Continued refinements in the PPP process
• Managing and Mitigating Political and Commercial Risks
• How to ensure public sector obtains value for money
from PPPs
• What can Africa learn from successes/failures of PPP
programmes across the globe?
• Where to from here?
Conference Roundup and overview of outcomes
PROGRAMME

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The event gave us the opportunity to meet with the decision makers and
champions from all the African countries that are here in one conference
- that really attracted us to be involved and partner with Africa PPP
Conference. The conference was well organised at a very convenient, just
networking with all made it worth the effort.
DBSA is a development finance institution with aspirations to profile
itself as the development partner in the Africa region and is a partner of
choice of financing the PPP projects, therefore Africa PPP conference is
considered as a creative platform to meet and share experiences with
other DFIs with the highest level of concentration of skills and experience
where experts are showcasing the PPP success stories. Africa PPP
Conference is the right sort of platform for DBSA to support.
Cyprian Marowa
General Manager Infrastructure Finance and Funds Investment,
Development Bank of Southern Africa (DBSA)
Angela Nalikka
Manager Infrastructure & PPPs, AfDB
It was a very enriching experience as usual. The networking sessions provided
for a rich source for business.
What I like about the Africa PPP event is the enthusiasm of the banking
sector to invest in PPPs and the expertise of the transactions advisers
and that it covers the whole life cycle of the PPP project. Africa is a very
difficult continent; it has the English and French speaking sections -
so how do you convey the message to both sides? You have to have
the exponential learning where you learn from other people and could
exchange ideas. At Africa PPP conference, we share what worked and
what did not work with our PPP projects.
Jack van der Merwe
Chief Executive Officer, Gautrain
Hannes van Wyk
Managing Director, Toll Infrastructure Services
The event emphasised 4 key outcomes for African PPPs:
1. How to close the funding gap in Africa PPPs was clearly established at this conference.
2. Project preparation is a vital tool for unlocking the development of the infrastructure via the PPP
procurement mechanism.
3. Community or public participation in PPP projects is of crucial importance.
4. The need to standardise the PPP framework across different countries because as an investor you
do not want to face different frameworks
TESTIMONIALS

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The conference has been consistently insightful since its inception.
Africa PPP Conference is extremely important because it digs into issues
which people in boardrooms do not like to discuss. But this event brings
the issues out, it brings the experiences and pitfalls which ‘beginners’
should be aware of. The quality of discussions is mindboggling.
Eng. Munyaradzi Munodawafa
Chief Executive Officer, Zambezi River Authority
Edward Kabwe
Director - Finance, Zambezi River Authority
We had a great experience at the Africa PPP Conference in London. It has
added tremendous value to our business as ZRA, particularly the Batoka
Gorge HES Project.
It was wonderfully prepared, lots of knowledgeable participants in
the entire value chain for PPP. List of the PPP projects (operational, at
construction stage, design and feasibility study stage) which enables the
governments to appreciate the progress in other countries, developers
and sponsors to identify the potential areas for investment. I liked the
standard outline for the presentations to show case of the current PPP
projects in the respective participating countries.
Ziria Tibalwa
Director, Technical Regulation, Electricity Regulatory Authority, Uganda
Ekow Coleman
Senior Investment Officer, Ghana Infrastructure Investment Fund
TESTIMONIALS

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ACKNOWLEDGEMENTS
On behalf of the organizers we would like to thank all of the following organizations
who contributed to AFRICA PPP 2016:
Gold Sponsor
Bronze Sponsor
Exhibitor SUPPORTER
Platinum Sponsor

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On behalf of the organizers we would like to thank all of the following organizations
who contributed to AFRICA PPP 2016:
Media Partners
Official Carrier
InternationalProjectFinance
Association
ACKNOWLEDGEMENTS

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Official Conference Executive Summary
Official Conference Opening
In his welcome address Mr Ahmed noted that the importance of promoting infrastructure through PPPs
to development in Africa was shown by how well the conference and training had been attended and that
diplomatic representatives, government officials, professional practitioners and investors were all clearly
keen to continue to engage with the attractive subject matter.
He gratefully acknowledged the sponsors that year after year allow the APPP Conference to continue:
The Development Bank of South Africa (Platinum Sponsor), The African Development Bank (Gold Sponsor),
Toll Infrastructure Services (Bronze Sponsor).
Cyprian Marowa said that he was pleased to see such expertise represented at the conference and encouraged
questions on the different PPPs that were to be presented, as he believed it is important to see how solutions
differ from country to country.
Key conference recommendations:
• There is a gap in funding available for PPP feasibility studies – addressing this would help more projects
get to bankability stage
• PPP teams should seek to engage with the private sector more in the early stages of project planning
• There are a wealth of tools available for project preparation, and better dialogue can mean that people
know how to find tools that are appropriate for their scale and type of project
• Successful PPPs, like those in South Africa and India are being looked at more and more by other
countries as governments seek frameworks to help them achieve success
• SED should be increasingly a focus for PPPs, and one way of doing that is embedding it into tender
documents and regulation, as well as better engagement with the grass roots
• A long-term view that includes long-term infrastructure maintenance and operation is the right
approach to infrastructure development
• A high level of political engagement is needed to do successful projects – politicians need to understand
their opportunity to leave an infrastructure legacy, not just to ‘cut the ribbon’. Project impetus needs to
be able to withstand regime change
• PPPs are developing as a professional practice, with an increase in standardisation in the necessary
skillsets; more courses and training are becoming available
• SMEs should increasingly become a focus and concern of project planners
• There are large-scale problems with liquidity in the debt markets in Africa; beginning to solve these
would make more mature and diverse debt funding solutions available
• Project bonds as a mechanism for finance are being increasingly looked at, with South Africa close to
achieving this with the Johannesburg Stock Exchange
• Project refinancing needs to be considered from the earliest stages to liberate capital for further investment
• The private sector is the answer to closing the funding gap for infrastructure in Africa, however it is not
just international but local financiers too that need to be mobilised
• On local engagement there is no one-size-fits-all approach, as different communities respond in
different ways; good public participation is key to mitigating risk and will only occur when engagement
is done with integrity
• In terms of sustainability, standardisation is increasingly happening and projects will eventually need to
align with the UN SDGs, and other relevant international standards

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Session 0: The New Deal on Africa and the IPP Flagship Initiative
Angela Nalikka felt that working together in partnership on power and energy is the key to unlocking
Africa’s potential. Energy is the backbone to the work the AfDB are doing in Africa and is the linking factor in
agriculture, industrialisation, integration and improvement of quality of life, which together with energy itself
comprise the bank’s ‘High 5s’ programme. She said, the New deal on Energy for Africa is a partnership-driven
initiative, with the aim of creating a holistic approach by joining up those organizations active in the region,
which may hitherto have worked in silos.
Matthew Rees of Power Africa a US initiative launched by President Obama in 2013, aims to bring power
projects to financial close in the shortest amount of time possible, something Mr Rees said that no single
development partner or agency could do on its own. Therefore, apart from its initial founding members (the
AfDB and the World Bank) Power Africa has gone on to join with 12 development partners from the public
sector and 120 private sector partners. This has led to over 130 transactions, which can be tracked in real
time on their Power Africa Tracking Tool (a smart phone app), which keeps project information live and all
stakeholders on the same page.
Chris Millward of MIGA thanked Angela Nalikka for outlining the aspirational goals that the AfDB has set
out and stated that their spirit is fully aligned with the approach of MIGA. Ultimately, he went on, these goals
are about leveraging public sector money to mobilise private sector financing. He stated that in 2015 40%
of MIGA’s business was in Africa, and most of this was in energy sector, through their political risk insurance
tool for project financing and their credit enhancement product.
Anas Charafi, Investment Officer at Africa50 then talked briefly about Africa50’s role in partnership. He first
stated how pleased he was that Africa50 could play a role in the AfDB’s new initiative, and stressed that these
programmes must be integrated. He proceeded to give some background on Africa50, a pan African investment
platform, launched by the AfDB and now owned by 23 African countries. Their investment target is $1bn by 2017.
Session One: Harmonisation in PPP Policies and Regulatory Frameworks
James Aiello outlined the current regulatory framework and policy initiatives in South Africa, going on to discuss
new proposals for increasing private sector participation in PPP projects. One of these currently being explored is
the use of listed project-specific bonds, and he said that the PPP Unit was working with the Johannesburg Stock
Exchange to develop these. He mentioned that 26 projects have been successfully closed by the SA PPP Unit and
that they have a further 50 in the pipeline at both the national/provincial and municipal level.
Aboubacar Guissé of Mali said that PPP processes are quite new in Mali, and their experience is predominantly
in the electricity sector. He stated that his government has decided to draft a special bill for PPPs. This bill
is now being put through parliament. He said that prior to the new bill, out of 53 proposed projects, only
three were seen as viable PPPs. He went on to say that the new bill applies to the government department
level as well as the municipal and regional level, and that it also contains a requirement to encourage PPPs
to subcontract work to local companies as a way of growing SMEs.
Atter Ezzat Hannoura then gave the delegates a glimpse of what is happening in Egypt. He stated his view
that anything that falls in between a fully owned state project and full privatisation can be a PPP. Mr Hannoura
said that Egypt had learned a lot since starting to work with PPPs around ten years ago and wanted to use
this platform as a chance to point out some of the major mistakes that delegates might make on their own
PPP projects.
Ziria Tibalwa Waako, brought the perspective of the Ugandan Electricity Regulatory Authority to the
discussion. In her presentation she outlined Ugandan models of PPPs as well as the risk sharing mechanisms
employed, which aim to split risk appropriately between the public and the private sector. She used the
examples of the Bujagali Power Station and the GetFiT to show how these models have been deployed –
more effectively in some places than in others.

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Session Two: Investing in Infrastructure – Financing Priority PPPs
Cyprian Marowa noted that Africa has current infrastructure needs of almost $100bn and that this translates
to a funding gap of $47bn. By region, Southern African has the biggest funding gap as well as the largest
spend. In South Africa, however, the funding gap is just over $1bn for infrastructure. He said that the work of
the DBSA could be summarised by three pillars – support in adequate preparation of projects, the financing
those projects in conjunction with other partners, and finally deployment of the Infrastructure Delivery
Division.
Ana Hajduka said that innovative financing models have been used, but there we are a long way to closing
the gap of $70bn per year needed annually up until 2030 to achieve the AfDB’s New Deal targets. Currently
funding is at 4.8bn year, 50% of which comes from public sector funding. There have been 59 IPPs outside
South Africa over the last 30 years, so the requirement to scale up is still huge. The focus of Africa GreenCo
is to come up with alternative approaches.
Romain Py then introduced AIIM as the largest investor on the continent. He said also that in the last five
years they have been responsible for investing into 2.25 GW of power. He noted that the first important
thing any government needs when doing a PPP in Africa is proper planning, as infrastructure development
is a long-term process which needs realistic targets, not ‘white elephants’. Secondly, he said that people are
agnostic in how projects are financed. However, it is critical that projects are economically viable
Ekow Coleman introduced the Ghana Infrastructure Investment Fund and its aim of being a catalyst to
attract more private investment into infrastructure projects in Ghana. He said that they also want to make
sure that projects are economically viable. The fund is also trying to address some of the long-term issues;
e.g. most banks are focussed on short-term ends and therefore the fund is there for the midterm, to make
sure deals are beneficial to the country in the long term. They are also driving other funding approaches and
so seeking to exit their projects – for example, alternatives like stock exchanges – to draw other buyers in.
Jing Li spoke next of some of the instruments that the AfDB have used to support the development of
infrastructure through the financing of PPPs, like partial risk guarantees. They have also approved a EUR500m
partial credit guarantee to Cameroon, she said, to support government obligations related to cross-currency
swaps needed to hedge the proceeds of their Eurobonds, allowing the country to tap into the international
capital markets. She also referred to the bank’s technical assistance in advisory services, as well as equity
investments that they do.
Paul Horrocks described the OECD’s overall aim in finance into Africa as ‘getting from the billions to the
trillions’. He also discussed the OECD’s work with the G20, as the de facto secretariat, in providing support
thinking about long-term investment, for example project bonds (as already mentioned) as well as getting
pension and insurance funds interested in refinancing projects at critical points during their lifecycle. They are
focussing with their bilateral donors particularly on blended finance and what the most effective structures
are to mitigate external factors such as foreign exchange and political risk - as these are significant to
investors.
William Dachs noted that in South Africa it is more common for the public sector stay engaged with the
PPP project after during operation, as they have done with Gautrain. One of the difficulties with PPPs in the
transport sector is that they are relative inflexible, as lenders have signed up to a particular risk and operating
profile. Thus he said when they sought to expand the project, they formed a partnership with the DBSA to
develop a credible plan. He noted Gautrain’s financial sustainability: equity returns and debt repayments are
all on target.

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Session Three: Best Practice Scenarios
Jack van de Merwe of Gautrain began his discussion of the Gautrain PPP by noting that it was seen as more
than just a transport project – indeed it had specific targets and KPIs that the project managers were aiming
to hit. His presentation gave an overview of the preparation planning, implementation, objectives, finance
and funding structure of the project. He also spoke about the current operational running of Gautrain as well
as the future phases that are planned. He lastly covered the economic impact of Gautrain as well as the SED
commitments of the project.
Naoll Mary then gave a presentation on the New Cairo Waste Water Treatment Plant Project. He noted at
the beginning that his company, FCC Aqualia, had chosen to operate 100% in the local currency and that the
$100m project requirement was entirely funded by investments from local banks. His presentation gave an
overview of the challenges they had encountered, noting the contractual force majeure event that occurred
as a result of the Egyptian revolution in 2011, as and how this was overcome.
Kweku Koranteng, lastly, gave the perspective of a DFI by presenting on the HKB Bridge PPP in Abidjan.
He noted the project’s significance in the French-speaking West African region and that because Côte
d’Ivoire had suffered a long period of political turmoil, AfDB had played a key role in reassuring investors and
partners that the PPP was a safe project to be involved in. Additionally, because the bid was awarded in 1996,
but financial close only happened in 2012 (probably due to unrest in the country), the role of the sponsor,
Bouygues Group, was also key in seeing the project through to completion.
Session Four: Focus Session – Project Pitch of Investable Projects
Beatrice Florah Ikilai of Uganda introduced the PPP Unit and giving the delegates some economic background
on Uganda, she proceeded to outline the investible projects that the country currently has in the pipeline.
These ranged from solid waste projects to road infrastructure, parks and government accommodation. The
projects discussed were all at an early stage and seeking investment.
Dieudonne Bondoma Yokono of Cameroon addressed the delegates next. After explaining that lack of
infrastructure has been an obstacle to economic growth in Cameroon, he gave an overview of the country’s
present economic situation. He then went on to describe a range of projects that were at the feasibility study
stage, which included dams, railways, highways, a hydroelectric power plant and an oil depot.
Stanley Kamau, director of Kenya’s PPP Unit spoke next. He began by describing the macro economic
advantages of investing in Kenya, for example the GDP growth rate of 5.9%. He stated that the Kenyan
government are trying to push projects through a using framework that they have devised, pointing to 71
projects at various stages (from conceptual to operational) that were going through this pipeline. He drew
attention to PPP projects in the transport sector, in particular to six road PPP projects that are about to issue
RFQs, as well as student hostels that are at an advanced stage.
Lastly, Chidi K.C. Izuwah Snr of Nigeria presented an overview of infrastructure investment in Nigeria. He
noted that Nigeria is Africa’s largest economy and that the Nigerian government is politically committed to
PPPs. He then gave a quick rundown of the country’s active PPP projects, such as the Garki Hospital in Abuja,
noting that these are successfully run by their private sector operators. He rounded up with a short case
study of a mobile phones operator that won a bid in 2001, when the country was deemed risky for investors,
and today earns over 30% of its global revenue from their Nigerian subscriber base.

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Session Five: South Africa Focus Session
How did the idea of PPPs originally took root in South Africa? James Aiello said that it started from a
successful PPP program for municipalities in 1999 that people felt should be established at the national level.
He said that, with the strong support of Trevor Manuel (the Minister of Finance at the time) and very little
resistance, a cabinet memorandum was drafted, which is the effective mandate for forming a government
department.
How much politicians draw their popularity from their ability to deliver these infrastructure projects, and how
PPP professionals can steer their way through the resulting debates? Liesel Lombaard agreed that this was
true in some cases, noting that in South Africa there had recently been political changes at local level and
felt that this was due to poor service delivery.
How are projects best made a success for both public and private sectors? Mark Flower said that it is
important that project execution skills are transferable from one sector to another, and that government
should take a stake in the SPV formed to extract the benefit of a successful project. Jack van der Merwe said
that it was important for PPP units to negotiate aggressively with the private sector with a central bargaining
team – that if a bidder didn’t like the way the project was structured then they didn’t have to tender, in fact.
The discussion then turned to multi-state PPPs. The panel was asked how development bodies could
overcome the potential challenges of doing a cross-border PPP. Jack van der Merwe drew a parallel with the
US structure of federal government and separate states, making the point that if development money could
be centralised then that would force commonality. James Aiello said he felt there was a decent amount of
cooperation between the East African countries and this was something that could be built on.
Day 2 keynote address: Lessons from India: the World’s largest PPP market
Paritosh Gupta of IL&FS summarised how India has transformed itself over the last 30 years into one of the
best destinations in the world for PPP infrastructure projects. He also discussed Africa’s huge infrastructure
needs, and how this creates an excellent opportunity for both private developers and investors. Africa, he
said, shares a historical trajectory with India and so can learn a lot from the Indian story and replicate
its success. India today has one of the largest PPP programs in the world, and has developed templates
that can be used in other regions. Mr Gupta concluded by reiterating that, in the light of India’s success
with PPPs, Africa contains some immense opportunities. He said that IL&FS are keen to partner with
governments and private sector organisations represented at the conference, as well as in large format
regional development initiatives.
Session Six: Project Preparation Facilities role in accelerating a pipeline of
Bankable PPPs
Junglim Hahm of PPAIF noted that the fund’s mission is to help eliminate poverty by facilitating private
sector involvement in infrastructure, and that their work is mainly on creating enabling environments. She
said that post-implementation support is often overlooked in project preparation, making reference to some
of the project preparation materials published by PPIAF. She concluded by discussing the importance of
effective communication with all relevant stakeholders.

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Sheila Galloway gave an overview of the growing momentum of PPPs in Africa, as well as some of her
experience giving technical assistance to the SADC countries. She noted that, in the case of early PPPs in
South Africa, many of the frameworks were created only after going through the experience itself. Most
countries in Africa have a PPP or coordinating unit, she said, but there is certainly a need for effective
frameworks.
John Seed of Mott Macdonald his company’s perspective was potentially a valuable one to the members
of governments present, as Mott Macdonald advise investors and so see things from their point of view. He
said that there was certainly a massive need to build critical infrastructure in Africa, but it was getting the
feasibility study and the business case right that would bring investors in. He noted that there might be 150-
300 different risk elements to any project that an investor will assess, so, as the previous speaker said, he
advocated engaging with the market at the earliest possible stage.
Alex Katon, Executive Director of InfraCo Africa, stated that InfraCo provides risk capital and expertise to
develop infrastructure projects in Africa. InfraCo Africa will invest into getting projects to bankable stage
– which he noted was a gap already identified by the panel – and then exit by selling equity to the private
sector. He said that on average typical projects need about $5m to get to financial close, and that they have
closed eight projects to date, their largest being the Cenpower project in Ghana. This is now an IPP that will
deliver just over 20% of Ghana’s electricity supply.
Matthew Rees of Power Africa noted the importance of energy access as it ties together many other
development needs. Power Africa’s approach to meeting its goals of increasing capacity by 30,000 MW and
create 60m new connections (by 2030) is to leverage their relatively small funding pot of $7bn by bringing
other partners, especially in the private sector. They have already mobilized a further $53bn from the public
and private sectors, and he noted that 4613 MW worth of projects have been brought to financial close to date.
In conclusion the panel agreed that one of most important considerations was to make sure governments
know how to find the right project preparation solution for the right scale of project.
Session Seven: Working towards Integrated Africa’s priority PPPs
Eng. M C Munodawafa began the session with a presentation on the development of the Bakota Gorge
Hydro-Electric Scheme (BGHES) on the Zabezi River.. He then went on to discuss the BGHES, including its
plan for implementation and eventual commissioning in 2022, and the benefits it will bring to the region,
in term of renewable energy generation. He then enumerated some of the reasons the River Authority is
seeking private sector involvement. He concluded by welcoming investors to closely observe the project’s
progress, as it is approaching the procurement stage.
Joan Miquel Vilardell of AGL gave his presentation on how best to leverage the private sector to boost
cross-border infrastructure development in Africa. He noted that African international trade has a huge
potential to grow but that infrastructure is very much needed to provide access to landlocked countries;
once transport corridors are established we will see increased investment in the medium and long term. He
noted the importance of trust in cross-border PPPs, and that there will be asymmetries in costs and benefits
between different countries that would need to be addressed.
Hannes van Wyk discussed how to manage political and social risk on toll road concessions. He began with
an introduction to his company, Toll Infrastructure Services, and explained that political and social risk are
becoming increasingly significant factors to project planners. Mr van Wyk mainly advocated a high level of
community and social engagement as way of quantifying and mitigating this risk. He said public participation
means sharing information with the community and letting their response impact on the decision making
process, and that solutions would have to be locally tuned – rather than copied and pasted from other
projects in other places..

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Lastly, François Serres gave a more legal and regulatory perspective on mega projects, drawing on his
knowledge and experience of West Africa. He noted at the beginning that the methodologies now being
developed for integration in Africa might someday be reflected in a post-Brexit Europe. He then talked about
some of the difficulties of cross-border cooperation and said that the point of integration is to connect
countries, and this means overcoming geography to connect people. He said that historically there have
been projects being pushed through where the state has not even clearly decided the structure of how the
project will be executed, whether that is through a PPP, a PFI, or through public procurement.
Session Eight: Social & Economic Capacity Building
Jacqueline Odula-Lyakurwa outlined the AfDB’s Inclusive Growth Strategy for 2013-2022, and how these
work in line with the bank’s High Five priorities. She then drew attention to effect of the fourth ‘P’ of PPPs –
people – and how the electoral cycle has a direct affect on PPPs and their success. Therefore governments
need to work hard to explain the need for particular PPPs to the people well before deals are signed. She
explained that the AfDB was working to increase capacity building by partnering with other initiatives, as
well as increasing civil society engagement and media awareness. In summary she said that the community
must have a positive view of the PPP project for benefit to flow from it to them.
Joanne Foley expressed the importance of community engagement and inclusive growth. She stressed
the significance of these factors to the risk profile of the project, from an insurers point of view. She noted
that some of the factors have obvious insurance solutions and some don’t, but all solutions revolve around
community engagement. She said that a growing PPP pipeline should ideally create greater opportunities
for the local insurance market, but in reality insurance markets are led by advisories that have international
ratings behind them, and those that work internationally.
Beatrice Florah Ikilai then spoke broadly on social and economic capacity building and tools that can
be used in the PPP space to improve the lives of Africans. She noted that stakeholder engagement is of
paramount importance in PPPs, as all sectors of society need to be included when doing PPPs. She used the
AfDB’s High Five’s as a grid to view inclusive growth through.
Peter Robinson discussed relevant tools around PPPs to improve quality of life. He noted that the present
focus on inclusive growth in development came about in the wake of the Second World War, and that
more recent failure to provide basic services has raised pressure for greater participation in the benefits of
economic growth. He stated that all infrastructure projects should contain social development components,
and that PPPs in particular should adhere to principles of good governance like participation, transparency
and accountability. He further noted that the concept of tools is very fashionable at the moment, but in his
view there is a gap in the literature for integrating inclusive development into PPPs
Session Nine: Risk & Reward – Why PPPs need to continue
Tom Minney put the question to the panel of whether we are at the point, in Africa, of where an actual
coordinated pipeline was starting to develop or whether we are seeing separate projects being developed
in silos. Are we seeing a regulatory framework developing? Heleen Goussard of RisCura said she is seeing
progress and this is evident from the fact that the dialogue is evolving, particularly at the APPP Conference.
When compared to the Indian story, she noted that Africa is only about a decade into the process, so
refinements are still taking place. She said in terms of developing frameworks, the right laws have to be
passed, so the political question is always an issue.

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Tom Minney then asked Chris Millward whether he felt the conditions are coming together for investment in
infrastructure to grow dramatically. Mr Millward responded that it is not just foreign investors but local ones
that would be key to this growth, as they have reduced perceptions of political risk and are not affected by
currency exchange risk. He drew a parallel with India, saying that local financiers had been responsible for a
lot its growth. MIGA, he noted, always has a very long pipeline of projects in Africa, but few of these come
to fruition. There is no doubt that PPPs are part of a solution, as it is critical that the private sector plays a
huge role.
Chinyelu Oranefo was then asked whether the African PPP market was on track. She said that she saw that
there is frustration, as we should be further along then we are now. However, concepts need to be proven
and mistakes need to be made and learned from – this will create an unlocking for PPPs to scale at an
increased rate. She said she is excited as she can see this happening, particularly in the power sector. Heleen
Goussard noted that private capital is created by the middle classes paying into pension funds and taking out
insurance, and this is very much happening in Africa. She said that pension funds that are seeking to invest
in Africa are not finding infrastructure projects with the right risk-return profile, however. She suggested the
best approach for countries was to get a first PPP done, which allows investors to see results.
Tom Minney then asked about these investment funds and their potential to scale up the process of
infrastructure investment. Heleen Goussard mentioned the lack of inflation-linked products for funds to
invest into in Africa, and also that pension funds want to see past track record of similar investments working,
because they are risk-averse investors. Mr Minney asked if the regulatory environments are right for pension
funds to invest into Africa. Chinyelu Oranefo noted that there are other global funds that are looking for
rates of return that can’t be found anywhere else but in Africa, but these have strict requirements in the way
projects are structured, and that particular environmental concerns, for example, are correctly observed.
The panel agreed that even though there is a pool of projects available, only a selection will be attractive
to the private sector. Additionally, each country is unique and has unique infrastructure requirements. PPPs
need to grow but there is not one approach that can be taken, so the challenge is to develop partnerships
that meet the varied need to fuel growth on the continent.

2016 Africa PPP Conference and Exhibition Post Show Report

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