Presentation Session 1: Benoit Mauduit
ISMED Annual Conference, Defining a Way Forward for Infrastructure Investment in the Middle-East and North Africa (MENA)
4 December 2014 - Paris, France
3. 3
…en intégrant les dimensions
économiques, sociales et
environnementales du
développement et leurs
interactions …
Volume of authorised
commitments :
€ 7.8 Bn in 2013
Strategic orientations
set by AFD’s
reference ministries
… in charge of implementing the French
official development cooperation policy …
… while taking into account the
economic, social and
environmental dimensions of
development and their
interactions …
4. A development agency with a whole range of
financial tools
Sovereign loans Loans to or guaranteed by States whose debt is sustainable
Non-sovereign loans
Loans to public enterprises, municipalities and other public entities without State
guarantee
Subsidised loans
Loans comprising an interest rate subsidy, long term repayment (15 to 30 years),
with a grace period
Loans at market
conditions
Non-subsidised loans, however long or very long term with a grace period
Grants and debt
conversions
At least 2/3 of the grants are reserved for low-income countries, mainly SSA
Guarantees Foster lending from local banks to SMEs e.g. Ariz, MENA Facility
NGO Support to NGO projects (co-financing)
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Our priorities
Employment and vocational training have been put among the top
priorities since the « Arab springs », but infrastructure still is a priority
Most of the MENA countries are dependant on imports in terms of
Energy => need to support diversification of their energy mix / action
also on the demand side (energy efficiency)
Growing urbanisation => Urban transport and urban development
=> wastewater treatment
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AFD commitments in the MENA Region1.1
(in million Euros)
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Coordination initiatives
in the MENA region
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The Mutual Reliance Initiative (MRI)
An agreement signed in February 2010 between KfW, EIB and AFD, based on
common operational guidelines
Derives from the idea to build on our similarities
Co-financing is the rule in the case of infrastructure (projects are generally too big for
one institution alone)
Lenders have similar project cycles
As finance institutions, we have similar constraints in terms of risk assessment and risk
management
Concerns several infrastructure projects (energy, transportation) in the MENA
region
Much still depends on the willingness of the project teams to collaborate
Having a frame to refer to helps a lot to solve problems
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The Neighbourhood Investment Facility
(NIF)
Promotes coordination among European finance institutions and with a donor,
the EC = blending
KfW, EIB, EBRD and AFD are the most active FIs
Blending loans and grants adds value to the projects.
More impact can be reached through ad hoc measures such as TA to the implementing
entity or investment grant to finance specific components
Increases the visibility of European assistance as a whole : projects supported by the
NIF must involve at least two FIs
The Technical Assessment Meeting (former FIG) is at the heart of the
coordination
A common pipeline
Technical discussions on the relevance and modalities of each project
In 2013, 69% of AFD authorised commitments are in co-financing and 82% of
these are part of a European package supported by the NIF
It is still a heavy process and allocation rules are not always clear
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Need for further coordination ?
Involve more of the actors present in the region
Eg Spanish, Italian, UK cooperations
Role of joint programming to increase cooperation among European donors
Role of trust funds (now European Trust funds) in post-conflict situations, provided
Agencies can be active at management committee level
Implementation can occur through different ways including delegated cooperation to
agencies (in particular for reconstruction / rehabilitation projects)
Coordination with Arab donors
Need to coordinate with the private sector
Maintain a dialogue with companies involved in the priority sectors
…While sticking to our rules transparent procurement procedures)
Other kinds of coordination or cooperation (eg with interventions at the
institutional level) to be experienced on a pilot project basis
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11. Thank you for your attention
Benoît Mauduit
+33 1 53 44 31 02
mauduitb@afd.fr