However, a lack of modern infrastructure is a major challenge to Africa’s economic development and constitutes a significant impediment to the achievement of sustainable development goals.

The PPP Model: A Challenging Step.

Facing the dearth of infrastructure funding, an increasing number of countries, notably emerging markets and developing economies a need arises to make an impactful attempt to Public-Private Partnerships (PPPs) in order to tap private capital.

PPPs in Africa remain a very small market, with projects concentrated in only a few countries, namely, South Africa, Nigeria, Kenya, and Uganda. We recognize that some African countries are hesitant to embark on PPPs as a result of prior bad experiences with ill-prepared PPPs or even with less-than competent PPP project sponsors.

It is broadly understood that public-private partnerships (PPP) are a procurement tool that encompass design, financing, construction and long-term operation of a public infrastructure by the private sector. They can be cost-effective thanks to adequate risk transfer and performance criteria, and help bridge Africa’s large infrastructure gap in many sectors.

The only question that strikes the mind is “What can African Government do have an effective PPP”?

Classifying potential PPP projects from the outset using the three criteria outlined above could help not only focus on the specific legal and institutional issues that are most relevant to the projects, but also on the viability issues that are critical to attracting private investors—which could include required government funding, the creditworthiness of national utilities or the financial capacity of users.

Many African countries could create precedent and bring in private capital to address their infrastructure needs. A PPP proverb by world bank strikes the issue “ Little drops of water via small projects makes an ocean of PPP projects in due course”

In order to have a successful PPP Model what is actually needed to be implemented is as follows:

Political Commitment: The Government should be effective enough to have a strong hold and control over implementation of the model.

Stakeholder Engagement: Steps shall be taken to increase stakeholder engagement by involving them with seminars, discussions etc. There shall be a proper one to one coordination between the government and the stakeholders to stay on one uniform road.

Strong involvement of development institutions (Both Public & Private): A strike of balance has to be maintained between both the institutions to let the model flourish in exact terms. Uniformity in decision making is the ultimate step that is needed.

Clear and Visible Benefits: the achievement through the initiative must be lucid enough to set a goal to achieve and the implications must be beneficial in order to support the infrastructural goals.

http://www.africagateway.info/sector/Tenders-Infrastructure-and-construction

Moreover, the government is inviting for International Competitive Bidding into Morocco Renewable energy sector from across the globe. For Instance, Ministry of the Economy and Finance has floated a renewable energy tender notification in Morocco for procurement of support services for strengthening the energy sector.  Public contracts in renewable sector have also proven to be imperative for the sectoral growth.

In the recent years, the government has shifted its focus to the development of the industrial activity. Major investments are to be undertaken by the government to boost the industrial development. Business opportunities in Morocco are largely driven by automobiles, aeronautics, infrastructure and mining. While recent years have also seen investment expansion over the ICT sector. The operators are seeking government procurement in Morocco to explore the young market. Government ICT contracts in Morocco are helping her to establish an internationally competitive position in the global market. Major Government ICT project initiatives in Morocco has been able to help her phase out a sizeable niche for itself in the recent years.

A range of major up gradation projects is being initiated in the transportation sector of Morocco. Along with public sector, the private sector is also set to gear up active participation in the investments in transportation. The country has seen, major procurement in road constructions, expansion, rehabilitations etc. Moreover, state authorities are floating tenders for up gradation of existing transportation projects as well as invitations to bid are being invited for Stalled transportation projects in Morocco. Government Transportation projects initiatives for Upgradation of Urban transport helping to boost connectivity and reduce congestion.  While large-scale ambitious aviation and maritime projects in Morocco are also in pipeline and will be going live in the years to come. The government has also planned projects to build 5 new ports in Morocco in the coming years.  As a result, major investments in transportation, industrial infrastructure and energy has boosted the country’s competitiveness and has established its position as a most favoured investment destination for global players.

The Egyptian economy is naturally fit for the manufacturing industries followed by oil and Gas. the large consumer base of 92 million is an essential element in the growth of the Egyptian textile industry. Egypt is also home to many energy-intensive industries like cement, steel. Petrochemicals and food. Private sector industries are mostly concentrated in food processing and FMCG sectors.

Though the manufacturing industry holds 16% of total industrial contribution to GDP Business opportunities from Egypt industrial sector is growing tremendously. Under its Economic reform initiative of 2016, the government has planned to go beyond manufacturing creating opportunities in the diversified sector. Such as oil and gas, real estate, retailing, tourism and agriculture. The government has been extending contracts, signing agreements with various authorities in order to drive investments into these sectors.

Recently, Kuwait Petroleum Corporation (KPC) and Egyptian General Petroleum Corporation (EGPC) have decided on the extension of two oil and gas contracts in Egypt to supply 1.5 billion tonnes of oil products. Similarly, multilateral financial institutions have been largely investing into the economy. The Government of Egypt has been successful in securing huge funding for various Government Projects in Egypt. Over last one year, the government has been able to secure funding for approximately 70-80 government Projects from funding agencies. Moreover, these institutions also undertake numerous initiatives through projects and Tenders in Egypt

Industry and Manufacturing being the mainstay in Egypt, apart from Ministry of Trade and Industry other government bodies are also actively participating in Procurement in Egypt. Procurement through Government Tenders in Egypt accounts for approximately 30-35%.  Call for tenders in Egypt from potential sectors have had an imperative impact on the growth of the economy. Invitation to bid for Government tenders in Egypt over the years have attracted myriad large and small investors to venture the market.

Egypt has earned its position as a major FDI destination for energy-intensive industries. For instance,  State electricity corporation of Egypt has forecasted to procure under International Competitive Bidding for construction and civil works for Helwan South Power Project by 2020. Similarly Egyptian Electricity Transmission company, Upper Egypt Electricity Production Company are actively inviting energy tenders in Egypt for international participation.

In the bid to boost the economic growth of the economy, Government of Egypt has been entering into numerous contracts with the private players to encourage them for participating in public tenders in Egypt. Telecom cluster has won a contract award in Egypt for the supply of Wind Power plant. ASEC CEMENT is a platform for investments in emerging cement markets in the Middle East and North Africa Region has won a contract award in Egypt to rehabilitate and manage the Muthanna Cement plant for 14 years.

Egypt industrial outlook features a compelling outlook for long-term investments, especially in the government sector. Government procurement in Egypt provides immense opportunities for the investors worldwide to mark their footprints into the emerging markets.   

Algeria remains the most lucrative yet the most challenging economies for the international Businesses. With the most recent announcement of Public spending initiative, the government of Algeria has decided to target the non-hydrocarbon sectors. Public contracts in Algeria have acknowledged imperative growth for long-term business prospects like the US and Europe. While the government is enthusiastic about the bringing in more foreign investments, opportunities are been diversified to other sectors apart from the mainstream.

The country being overly dependent on hydrocarbons exports, Government tenders in Algeria has been largely driven by other sectors like construction, pharmaceuticals, real estate and tourism. Financial institutions like UNDP, Eu, AFDB are constantly inviting tenders in Algeria to boost the economic growth. For instance, European union has recently called for ICB tender invitation in Algeria for procurement of technical assistance into local development. Moreover, the state government is also been actively driving procurement as per the need of the sector. State Ministry tenders in Algeria are prominent among agriculture, defence, education, vocational training etc sectors.

Algeria’s bright sectoral prospects offer immense business opportunities for international players. It has been seen that over the last few years large scale public contracts in Algeria has been awarded to foreign contractors.  The foreign companies established in Algeria has increased from 3 % i.e, from 810 into 1,008 in 2013. Moreover, regular deployment of Global Tenders from Algeria published by the authority on the portals are proving imperative to bring in investments.

Apart from investments government is also focusing on creating a suitable infrastructure to drive growth.  The government in its mission has planned 90 million$ investments into major infrastructure projects in Algeria.  The government plans to create 4 additional refineries in Algeria, financial measures are being taken in order to implement the projects. Moreover, the ministry of Energy has initiated 400mw of solar energy project in Algeria to be completed by 2018. Over the years private players are also being encouraged to participate in government projects in Algeria. For instance,  GICA, a Chinese equipment manufacturer has recently inked a project agreement to build a cement plant in Zahana by  2018.  Ministry of Energy and Mines has come up with a potential initiative of construction of a petrochemical plant

with an annual capacity of three million tonnes in Algeria by 2018. Looking at Algeria’s investment partners, the country has been thoughtful about going beyond the US and Europe. The government has also encouraged participation from emerging economies like Asia. according to the experienced shared by the companies that venture the market through government, tenders have reported double-digit growth in the market.

Algeria is the epitome of high reward economy, that can be flooded with potential foreign investments nearly in every sector. The government has been taking sustained and constant measures to make it a competitive economy in the coming years.

The government of Egypt has been undertaking large-scale energy projects in order to boost the sector. The government has recently awarded energy contracts to large international cooperations for expansion of the sector.  one of such deals has been signed recently with Russia over the establishment of nuclear power plant in Dabba.

Russia will be providing finance for building and operation of Nuclear Power Plant. Russia has agreed to invest 25bn$ in the construction of the nuclear plant that will have the capacity to produce 4,800MW of the nuclear energy. The loan will finance  85%  of the value of each contract for the work, services and equipment shipping, and remaining 15% will be financed by Egypt. In addition, Russian factories will be established in Egypt to manufacture nuclear plant components locally and transfer Russian expertise to Egypt. This project is one of the most significant national projects in Egypt. Similar government energy projects are being initiated on large scale. Egypt has been aiming to commission large-scale Renewable Energy projects that will further enhance the sub-sector growth. Government energy tenders are floated in areas of rehabilitation and installation of energy plants. Moreover, Government intervention through the regular deployment of energy tenders through e-procurement and government tender portals have been playing a vital role in the development of the energy sector. Moreover, in recent years Egypt has signed myriad Mou’s in the energy sector with other countries.  Enhancing country’s competitiveness International Energy tenders, Energy Bids, RFP, RFQ are being invited most importantly in the renewable energy sector for development and capacity building of the energy sector. Moreover, large international have acquired Contract awards from Egypt energy companies to support large energy projects. overall Egypt Energy sector

overall Egypt energy sector is under a crucial highlight as the sector provides immense business opportunities in the energy industry. Moreover, the country has a right mix of ingredients that makes it one of the most prominent energy investment destination.

Kenya Airport Authority has announced Aviation Modernization Project to improve security and service provision at the International airport and to meet International standards to enhance public oversight capabilities for the aviation sector in Kenya.

Project Details: 

Project Location: Kenya

Project Phase:  Pipeline/ Planning

Project Value:  US$ 285.00 million

Project End:     31 Dec 2020

Project Description:

International class gateways to the global economy are critical for the Kenya’s development, as they have become growth centers. There have been some major improvements with respect to the availability of airfreight services, passenger terminal facilities, and rehabilitation of the runway at JKIA.  The project  will include the tentative components of which GoK has requested IBRD financing for component A while IDA for components B, C and D.

The following are the components of the project.

Component A: Improve the Passenger Terminal Capacity at JKIA and Institutional Strengthening by

A) Design and Implementation of Modernization Terminals

B) Capacity building and training of manpower

C) Update the national airport master plan and strategic environment management plan

D) Technical assistance towards internal structural reorganization of KAA and strengthening institutional capacity

Component B: Enhance Security at major Airports under KAA( Kenya Airport Authority)

a) Design and install an integrated system to enhance security at major airports

b) Support to KAA training school.

Component C: Strengthen the Aviation Oversight capacity

a) Enhance management in formation systems by augmenting ICT infrastructure and install modern Data centers

b) Installation of communication equipment to integrate operations

c) Upgrade the Local

Air transport lies at the heart of the global business and tourism. Air transport both for business and leisure contribute to a larger extent to the Kenyan economy. Air transport modernization project is one of the major initiative by the Airport authority to modernize the existing Airport terminals and enhance security for safe air transport.

For more detail on Aviation project, kindly visit

 http://www.africagateway.info/

Zambia’s electricity mix is dominated by hydro generations. Large and mini-hydropower stations account for 94% of the installed capacity. Although the total national installed capacity is about 2,400MW, available power has tremendously dropped resulting in a deficit of 700MW. The Zambian government aims to increase the electrification rate from 25% to 66% with 90% for urban and 50% of rural areas.  To achieve this objective, it focuses an extension of the power grid and current large-scale power plants.

The government decision to make industrialisation the key to economic development, Zambia’s need for an alternative source of energy has become more urgent. The Zambian government has signed four memoranda of Understanding with Rosatom of Russia to lay the groundwork to build nuclear power plant in Zambia which it hopes may end the load shedding.

While addressing the parliament on Thursday, Dec 8,2016, President Edgar Lungu announced a bold new energy strategy. Zambia has set out on an economic diversification of energy by involving nuclear energy. It is, therefore, imperative that the country starts thinking away from hydropower generations and pursue other viable options.

The three energy memoranda and one project development agreement with Russia signify the process to develop the capacity in Zambia. The deal, which is not legally binding, sets out a 15-year nuclear co-operation plan, with the eventual goal of constructing a nuclear gigawatt nuclear power plant. In addition, Rosatom will help train Zambian nuclear engineers, develop a nuclear energy regulator, and spearhead nuclear research in the country. Local media estimate the total value of the deal to be $10-billion.

Keeping in mind the country’s energy needs, over the long run, it expects to construct a nuclear science technology centre. This centre would essentially assist Zambia to safely and effectively move into the nuclear industry and allow them to master nuclear technologies and help develop workforce capacity in the nuclear sector.

Along with this, the country is also trying viable options to address its energy deficit. The country. A german company wants to invest $500 million in solar plants. While another group of investors from Italy are looking to set up a nuclear plant in Lusaka- South multi Facility Economic Zone, and two others in the Western and North-Western province.

Developed economies around the world are using nuclear power to drive their growth and it is time Zambia set out on that path.

Large investments are made to boost the grwoth in the energy sector. The ministry of Energy in Kenya has implemented Kenya Elelctricity Modernization Project to increase access to electricity and improve reliability of electricity services.

Project Details: 

Project Location: Kenya

Project Value: US$ 200.00 million

Project status: Active

Project End: 31 Dec 2016

Project Description:

Kenya aims to increase generation capacity by 5,000Mw in 2016 to 2300Mw in 2030. The Government of Kenya is focused on sustaining a stable investment climate for private-sector participation in energy, developing expanded transmission and distribution networks to deliver power to customers, maintaining a creditworthy off-taker, maintaining cost-reflective tariffs, and reducing inefficiency in the sector to support more affordable end-user tariffs.

The important objective of the Kenya Electricity Modernization Project is to:

a) Increase access to electricity

B) Improve reliability of the electricity services

c) To strengthen KPLCs (Kenya Power and lighting Company) financial situation.

The country currently has just under 2200 megawatts of installed electricity generating capacity according to the most recent draft of Kenya’s national energy and petroleum policy, published by its energy ministry.

The country’s electricity demand is set to rise as economic growth ticks up. The demand is being driven by development of industrial parks, growing industries, railway developments etc.

To meet this demands kenya government has embarked on Electricity Modernization Project to increase the transmission distribution and reliability of the energy sources.

For more details follow the below link:

http://www.africagateway.info/sector/Tenders-Energy-Power-and-Electrical

South Africa’s construction industry remains one of the economic engines of the country. Construction output in south Africa accounts for 48.2% of the total GDP, followed by Angola  at 12.9% Mozambique  and Zambia at 10.6% each. The construction industry continues to grow despite a slump in the economic growth. Despite these challenges, the industry’s long- term growth prospects looks positive with major new  investments in the coming year under the Government’s National Infrastructure plan.

With Rising new city projects, development of commercial space business opportunities across the construction and infrastructure poised to grow steadily. According to the Deloitte’s report on Construction trend in Africa, South Africa is ranked as the most preferred destination for construction investments. The country accounts for most of the construction project in the continent.

In total 85 of the infrastructure and construction projects in the continent are from South Africa.  Large construction projects in South Africa have a collective worth of 324 billion$. As a result government and other African companies are imperative to invest in the construction sector of South Africa. Across the sector, investments in real-estate accounts for 30% of the construction activity. Large increase in investments is also been  seen in Energy and power projects, transportation projects, mining and shipping projects, and  ports projects. Investments in Energy and power account for largest share followed by oil and gas sector.

Both Private and Public sector undertake construction activities in South Africa. However, the government is the largest financial investor in the construction sector. Government funded project to account for 60% of the market share. Whereas private sector accounts for 24% of the projects. The government is mostly undertaking civil engineering and construction work rather than the construction of residential and commercial complexes.

The emerging economies in the country seek financial assistance from developmental financial institutions to fund large projects. Therefore, Multilateral funding agency projects account for 10% of the total market share in the construction sector. Moreover, government tender notices are regularly deployed associated with the demand of the sector.

Industry development in South Africa is aimed at establishing an internationally competitive industry that enables government contracts with foreign contractors and consultants for the provision of technical assistance, feasibility study and provision of design and engineering services. Tendering opportunities for international/ private bidders are immense across e-commerce, transport and logistics segments. International tenders are floated to encourage foreign participation in the sector. Government invites competitive bidding, Rfp,RFQ to diversify ways of investments in the sector.

With the sector spilling growth Procurement opportunities from the construction sector are bound to surge with new investments flowing in the sector. However, the government is also taking steady steps to ensure that the industry remains vibrant.

Project Details: 

Project Location: Cape Verde

Project Value: Euro 32.794 Million

Project End: 31 Dec 2016

Project Description: 

This project aims to address the air transport demand, especially those needs relating to economic activity and tourism. And also address  projected traffic increase and ensure efficient management of passenger flows at peak periods.

Project Parameters: The following improvements are envisaged under the proposed project :

1) Expansion of the Passenger Terminal

2) Expansion of the Aircraft Parking Area and various Networks and

3) Renovation of the Freight Terminal

The project is divided into two phases :

1) Will be financed by the African Development Bank and

2) which is optional, and for which the prime contractor reserves the right to a longer period of implementation.

Phase 1 components:

• Expansion of the passenger terminal and facilities through the construction of a terminal and the renovation of the current terminal;
  • Extension of aircraft parking, various networks and signs and equipment; and
  • The building of a sewage treatment plant

Phase 2 components:
• Extension of the freight terminal;
• Construction and installation of a new security and fire station (SSLI) (undefined location);

The main objective of the Project is to help boost Cape Verde’s Air transport Infrastructure.

For more details follow the below link:

http://www.africagateway.info/sector/Tenders-Transportation