PROMOTING CLIMATE RESILIENT INFRASTRUCTURE DEVELOPMENT IN AFRICA

GIZ, and the African Union have had a long-standing commitment to promote sustainable infrastructure development as a key mechanism for supporting economic growth, in the development of African countries. The pan-African Programme for Infrastructure Development Africa (PIDA) was established in 2012, with the key objective to prioritise regional and continental infrastructure investment programmes in the sector’s (Energy, Transport, Information and Communication Technologies and trans-boundary water resources). AU Heads of State and Government adopted the second PIDA Priority Action Plan in 2021, with a pipeline of 69 cross border projects.

In line with the PIDA, the African Union Development Agency (AUDA-NEPAD) developed the Service Delivery Mechanism (SDM), which supports in the early project preparation of infrastructure projects by providing technical advice to bring projects to bankability. The SDM has, since its inception, primarily focused on financial and social viability.

While the former SDM Quick Check Methodology considered the Environmental Social Governance (ESG) aspect, the development of the “Green Track Methodology” now incorporates climate mitigation and adaptation into the development of infrastructure projects.

On 19 January 2023, GIZ, in partnership with AUDA-NEPAD, facilitated a stakeholder consultation on the “Green Check” Methodology. This methodology appraises the climate finance suitability of projects and verifies their climate resilience and adaptation potential.   The SDM Green Track Methodology is instrumental in attracting “climate financing”, through integration of climate mitigation or adaptation measures in infrastructure projects.

The consultative workshop was attended by leaders in climate financing and infrastructure project development, including, amongst others, KFW, AFDB, Development Bank of Southern Africa, EU Global facility, Green Climate Fund, Africa50, Eastern and Southern African Trade and Development Bank, etc. These role-players contributed technical feedback to the shaping and finetuning of the Green Track Methodology, which has become fully operational in advising the current projects which are being implemented in the Central Corridor by the Central Corridor Transit Transport Facilitation Agency.

Why Early project preparation?

The rationale for GIZ/AUDA-NEPAD to focus on early project preparation lies in the notion that most infrastructure projects fail due to improper planning. We believe that effective, early project planning leads minimised risks, and thus, improved chances of bankability. Project proposals that are well prepared have a higher chance to attract investment. With the incorporation of the “sustainability” element, the projects stand a greater chance of receiving funding.

Steps in “Green Tracking” an infrastructure project? 

The main goal for infrastructure development and growth in Africa is “regional connectivity to increase trade and economic development”. Our aim is to ensure that this is done in the most sustainable and cost-effective manner.  In doing so, the SDM Green Track Methodology looks at 5 key factors:

  • Climate policies mainstreaming
  • Green funds interest
  • Climate mitigation and adaptation
  • Green funds attractiveness
  • Economic contribution

PIDA History | Virtual PIDA Information Centre (au-pida.org)