August 29, 2022

SADC PPDF approves US$20.2 million for preparation of 12 regional projects

The Southern African Development Community Project Preparation Development Facility (SADC PPDF) has approved a total of US$20.2 million for the preparation of 12 regional projects covering energy, transport and water sectors, and these are expected to generate at least US$3 billion in infrastructure investment.

The projects have a huge potential of unlocking business opportunities across the infrastructure value chain, not just in advisory services, but also financing, construction, equipment supply, technology and skills as well as operations and maintenance.

Among the projects approved by the PPDF and funded by the European Union (EU) and KfW Bank of Germany are the Second Alaska-Sherwood powerline in Zimbabwe; the Angola-Namibia transmission interconnector; Kasemeno-Mwenda toll road and Luapula hydro power development both between DRC and Zambia, Mulembo Leyla Hydro in Zambia; the North South Rail Corridor involving Botswana, DRC, South Africa, Zambia and Zimbabwe.  

The projects also include Mauritius Wastewater Pumping Station and Wastewater Treatment Plant; MOZISA power interconnector project between Mozambique, South Africa and Zimbabwe; Africa Green Co projects (all SADC Member States); Kazungula Water Supply and Sanitation Project (Zambia); Lomahasha Namaacha Cross (Eswatini and Mozambique); and Development of Guidelines and Standards for Renewable Energy Projects including a funding and Incentive strategy in Mauritius.  

The planned expansion of power production facilities in the Region needs a strong transmission network to be able to supply the additional load. The transmission projects approved by the PPDF are expected to remove bottlenecks on the Southern African Power Pool (SAPP) transmission system and to increase the capacity to wheel power and thereby enhance trade among SADC Member States.

At the same time, the transmission lines would support growth and facilitate integration of new generation projects. The corridors in the energy and transport sectors are being advocated to create new corridors to support industrial development and improve energy security in the Region . The Southern African Power Pool (SAPP) has also been holding dialogues with various agencies and development banks and has secured multilateral funding for various projects and activities, which include capacity building, technical assistance and project preparatory funding to support the efforts of the SADC PPDF.

The PPDF aims to assist SADC to address the implementation of the SADC Regional Infrastructure Development Master Plan (RIDMP), which will promote and contribute to enhancing regional economic integration in the Region.

The purpose of PPDF funding is to enhance sustainable economic growth and the delivery of key services affecting development in the SADC Region, through addressing constraints to infrastructure development. The Development Bank of Southern Africa (DBSA) has been appointed by the SADC Secretariat as the implementation agent and fund manager for the PPDF. 

PPDF has continued to support SADC Member States to strengthen regional infrastructure connectivity by providing grants for project preparation and development for cross-border regional infrastructure projects in energy, transport, ICT and transboundary water. This directly supports the Region’s integration and industrialisation efforts as well as trade in goods and services; and helps to improve the quality of lives of SADC citizens by improving access to infrastructure services.