Early-stage infrastructure project preparation via the AUDA-NEPAD Service Delivery Mechanism

To continue GIZ"s support to the African Union Development Agency"s (AUDA-NEPAD) Programme for Infrastructure Development in Africa (PIDA) on implementation of regional infrastructure. GIZ, through two the Federal Ministry for Economic Cooperation and Development"s (BMZ) funded programmes, the Integrated Corridors for Economic Growth in Africa (Africa InCORE) and Accelerating the Energy Transition in Africa (ENGAGE) aims to support AUDA-NEPAD in its implementation of the agency"s Service Delivery Mechanism (SDM). The SDM is a strategic platform designed to accelerate the preparation and implementation of infrastructure projects across Africa. Focused on early-stage infrastructure projects, the principal aim of this is to, through the SDM, support projects" progression to full feasibility studies. Africa InCORE"s principal objective is to support the Africa Union to ensure that the development of integrated infrastructure corridors is better aligned with regional integration, green economic growth and intra-African trade. To this end, in an expansion of the corridor-based intervention piloted in the Central Corridor, North-South Corridor was selected as a second corridor to receive project preparation support. For this, AUDA-NEPAD"s SDM will be made available to support infrastructure and/or industrialisation projects derived from the lists presented by the institutions responsible for the two selected corridors. Thus, the "Client" for these infrastructure and/or industrialisation projects is AUDA-NEPAD, the Central Corridor Transit Transport Facilitation Agency (CCTTFA), the Southern African Development Agency (SADC) for North-South Corridor, GIZ, and their various Member States or some combination of these as is relevant for each project. The ENGAGE programme is carried out as part of an integrated approach together with the global programme Global Energy Transition Program (GET.pro) and Africa InCORE. The aim of ENGAGE is to accelerate Africa"s renewable energy transition by supporting the implementation the Continental Power Systems Master Plan (CMP) and the African Single Electricity Market (AfSEM). This is achieved, in part, through early-stage (variable) renewable and transmission energy project preparation by the SDM. This project preparation approach seeks to bring together realisation of the CMP and application of the AU"s integrated corridor approach"s principles. To this end, the early-stage infrastructure projects supported by ENGAGE focuses on projects with an impact on the Central Corridor and North-South-Corridor Member States. Description of the scope of works Targeted technical advisory shall be provided, particularly in the upstream phases of infrastructure project development. This includes the design and deployment of tailored sectoral infrastructure packages that address project-specific needs in close collaboration with the responsible AUDA-NEPAD and GIZ technical teams. Infrastructure project preparation To be provided is early-stage project technical advisory to advance selected energy and non-energy projects with the aim of readying projects for full feasibility studies. For energy, the focus is on sustainable energy projects including (variable) renewable energy and transmission. For other sectors, the focus sub-sectors for these projects are ICT, industrialisation (e.g., industrial parks), transboundary water and/or transportation projects as selected by institutions responsible for regional corridor management (in the Central Corridor and North-South Corridor). Tasks include: - Conduct rapid assessments and document review, prepare project profile, readiness diagnostics and confirm that the projects are at a stage for further TA. - Define tailored SDM support packages for each project. - Develop SDM deployment workplans with milestones and roles. - Review enabling policy and regulatory frameworks - Conduct pre-feasibility assessments (technical, land, permitting, market review, commercial viability, financial modelling, etc.) - Supporting engagement with national institutions, regional economic communities (RECs), power pools, and utilities - Identify gaps in projects and propose early-stage interventions. - Undertaking technical studies, as required, e.g., technology selection assessment, grid integration and evacuation concept, preliminary energy yield and deliverability, constructability and CAPEX, and early permitting and land status. - Identify potential institutions that have an interest in the project(s) and align project preparation efforts with their requirements. These institutions should primarily be African or European actors To enhance the effectiveness, efficiency, and credibility of the SDM mechanism in advancing energy projects, an SDM-level review of the applicable processes will be conducted, for energy projects. Based on a sample of energy projects, the review includes: - Review the SDM energy project portfolio by development stage, technology types, geography, and SOPs - Assess project progression rates - Identify common points of delay, redesign, or attrition. - Assess alignment of SDM outputs with: DFI requirement, investor expectations, and regional and continental energy priorities. - Identify gaps affecting investor confidence and bankability: - Collate proposed updates/refinements to the SDM SOPs as proposed by these actors for implementation by AUDA-NEPAD. Market sounding and financing sector engagements Structured, targeted engagements between project sponsors and financing institutions - multilateral, bilateral, commercial, and development finance actors - shall be facilitated to improve alignment between early-stage project design and funder expectations, and to accelerate project bankability under AUDA-NEPAD"s SDM framework. Tasks include: - Developing a structured marketing sounding framework tailored to the AUDA-NEPAD SDM. - Segmenting financiers by mandate, geographic focus, and risk appetite. - Preparing targeted outreach lists and engagement protocols. - Organising structured market sounding sessions/ "deal rooms" (virtual or in-person). - Facilitating thematic panels, bilateral exchanges, and matchmaking sessions. - Coordinate a market sounding event to be held in Europe, working closely with the Africa-EU Energy Partnership (AEEP), AUDA-NEPAD and/or GIZ, as relevant. - Support project sponsors in preparing funder-aligned pitch decks. - Develop feedback templates to capture funder insights on project readiness, gaps, and interest. - Coordinate post-event follow-ups with interested financiers. - Develop guidance notes and toolkits for future SDM engagements. Capacity development Capacity development support on technical advisory for infrastructure projects is to be provided. Capacity development is targeted at technical advisors of AUDA-NEPAD, and CCTTFA/ SADC/ Member State representatives responsible for corridors development. Tasks include: - Conduct technical needs assessment and propose capacity building interventions for technical advisors and/or projects owners - Plan and conduct 2x capacity building measures (e.g. trainings, workshops) with the relevant Client and/or Member States. - Establish shadowing between AUDA-NEPAD"s SDM team and contractor"s STE for TA coaching and guidance - Formulate lessons learnt, best practices and principles throughout SDM ESP TA as a basis for strategic decision making and policy making by the Client. - Ad-hoc advisory on a variety of topics related to the project development as requested by the Client. - Contribute to the harmonisation of SDM process and guidelines. - Developing and delivering toolkits, guidelines, training materials and formats to encourage knowledge transfer - Supporting the digitalisation of the updated SOPs and their integration into the newly developed digital SDM platform. (The digital platform development is not a task but input will be required.)