Effective Project Preparation for Africa's Infrastructure Development
- ICA & National Treasury, Republic of South Africa
The lack of a strong pipeline of well-prepared, bankable projects has been widely recognized as one of the key constraints to infrastructure development in Africa.
‘Project preparation’ is a process which comprises the entire set of activities undertaken to take a project from conceptualization to actual implementation. The level of complexity and therefore cost of preparation varies according to the project size, sector, target beneficiaries, rural or urban focus, and various other parameters. Recent estimates by the NEPAD-IPPF show that project preparation can be up to 10-12% of the total project costs for large regional projects in Africa. The continent is grappling with resource constraints, both financial and of technical capacity for undertaking project preparation. Hence, enhancing the effectiveness of project preparation requires an analysis of factors influencing demand and supply of project preparation financing. On the demand side, there is a need to assess the institutions involved in project preparation, so that efficiencies can be reaped through better utilisation of the current resources available for project preparation; on the supply side there is a need to understand how to mobilise the requisite resources to enhance the capacity for systematic project preparation.
The objective of this paper is to raise both the demand and supply side issues, as well as to propose recommendations for addressing these concerns for the deliberation of the ICA Annual Meeting 2014
- Publication date
- Document type
- Concept Paper - For Discussion at 10th ICA Annual Meeting
Categories: Energy, ICT, Transport, Water, Project Preparation, Infrastructure Financing, ICA Publications