The Southern African Development Community (SADC) Project Preparation Development Facility (SADC-PPDF) continues 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, information communication technologies (ICT) and trans-boundary water.
The SADC PPDF was created as an initial window for establishing the SADC Regional Development Fund (RDF). The PPDF is currently funded by the European Union (EU) to the tune of Euro 11.5 million, and by Germany’s KfW Development Bank to a tune of Euro 10.1 million. The funds are administered, managed and disbursed by the Development Bank of Southern Africa (DBSA) on behalf of the SADC Secretariat.
Its objectives are to support SADC Member States in developing technically, economically and financially viable infrastructure projects prepared and/or financed for the SADC region. This is expected to result in the identification and preparation of a pipeline of regional economic infrastructure projects and the development of human capacity within the region for the identification, project preparation, evaluation and marketing of economic infrastructure projects, as well as marketing of investment proposals.
Among others, the PPDF directly supports the SADC region’s integration and industrialisation efforts as well as trade in goods and services; and helps to improve the quality of lives of its people by improving access to infrastructure services. In addition, PPDF supports SADC countries to undertake feasibility, technical and engineering designs, environmental and social impact assessment studies, as well as preparation of tender documents and transaction advisory services to make projects bankable for financing and implementation.
According to a report by the SADC Executive Secretary for the financial year 2019/2020, by 2019, PPDF had approved a total of Euro 20 million for the preparation of 13 regional projects covering energy, transport and water which are expected to generate US$4.81billion in infrastructure investment. This has the 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.
The 13 regional projects are the Mozambique-Zimbabwe-South Africa (MOZISA) interconnectivity project; the Second Alaska-Sherwood 400kV transmission line (Zimbabwe); Kasomeno-Mwenda Toll Road linking the DRC and Zambia; rehabilitation and upgrading of the North South Rail Corridor linking South Africa, Zimbabwe, Zambia, DRC and Botswana; Luapula Hydro Power Development shared by DRC and Zambia; Angola-Namibia Transmission Interconnector; Mulembo Lelya Hydro Electric Power shared by DRC and Zambia; Africa Green Company (all SADC Member States); Development of Guidelines and Standards for Renewable Energy Projects and a funding and incentive strategy project in Mauritius; Angola-Namibia Transmission Interconnector; wastewater pumping station and wastewater treatment plant in Mauritius; Lomahasha-Namaacha cross border water supply between Eswatini and Mozambique; and Kazungula Water Supply and Sanitation Project inZambia.
Currently processes are on-going to operationalise the SADC Regional Development Fund, whereby the Agreement to operationalise the Fund has been finalised and nine Member States -- Angola, DRC, Lesotho, Malawi, Mozambique, Eswatini, United Republic of Tanzania, Zambia and Zimbabwe -- have signed the Agreement.
The 39th SADC Summit in August 2019 approved August 2021 as the targeted date for the Fund to become operational. The Sustainable Financing of Regional Infrastructure and Industrial Projects in SADC (an African Development Bank Project) is providing support to deepen regional integration in the region including the operationalisation of the Fund.