AAAP in the Media
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The Gambia: African Development Bank commits grants of $20.56 million to further upgrade Banjul port
The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank Group, on Thursday approved grants worth $20.56 million to finance the fourth expansion of Banjul Port in The Gambia.
The funding comprises an ADF grant of $13.71 million and another $6.85 million grant from the Transition Support Facility window. The project will also receive a $450,000 grant from the Africa Adaptation Acceleration Programme (AAAP) a joint initiative of the African Development Bank and the Global Centre on Adaptation, for technical assistance to mainstream climate resilience into the expansion. AAAP will use cutting-edge climate analytics to identify and quantify the impacts of physical climate risk on the port infrastructure and provide adaptation investment options to climate-proof it.
The expansion will be financed in parallel with a private investor who will be selected competitively by the Gambian government. The World Bank and the African Development Bank supported the Banjul Port’s previous expansions.
The fourth expansion program entails an extension of the port jetty by 345 meters to accommodate up to three ships simultaneously instead of one currently. It also provides for the expansion of the container terminal area by 22,000 m2 to create space for unloading ships, replacement of a non-functioning ferry plying the Banjul and Bara crossing and widening port access roads by 3km to ease congestion. Information and communication processing systems will also be procured for efficient linkages between customs and the terminal operating system.
Upgrading the port will significantly reduce ship turnaround time and cut costly congestion and surcharges, enabling reductions in sea freight costs and demurrage payments. The works will boost the facility’s capacity to meet growing traffic and improve efficiency in operations and management as it digitizes its procedures. The introduction of green and low-carbon emission ferries will make the port infrastructure more climate-friendly and climate-resilient. The project is also expected to empower women's groups through gender-sensitive procurement and provide jobs, especially for the youth.
At the end of November 2022, the Bank Group had 12 active operations in The Gambia, valued at $166.6 million. Eighty percent (80%) of these are financed through its ADF window. The transport sector represents 55.6% of the portfolio, the largest share, followed by agriculture and rural development with 24%. Energy sector projects constitute 12% of the portfolio.
Contact:
Kwasi Kpodo, Communication and External Relations Department, African Development Bank, email: media@afdb.org(link sends e-mail)
GAMBIA National Transport Risk and Resilience Assessment
Transport systems are a key enabler for trans-sectorial development in The Gambia. The Gambia has a land area that stretches 450 km along the Gambia River, dividing the South and the North banks of the river, and is surrounded by the Senegal except for its 60 km Atlantic Ocean front. The national transport system contributes to geographical integration across the banks of the river and facilitates cross-border Nort-South traffic within Senegal. Strengthening the transport system will therefore also strengthen essential commercial links and reinforce access to social and economic facilities.
The country’s transport system relies on: (i) roads (primary inter-urban trunk roads, secondary gravel surfaces roads, urban roads mainly in the Greater Banjul area), (ii) air transport with the Banjul International Airport, and (iii) maritime and fluvial transport with the Port of Banjul and the river. The Gambia National Transport Policy (2018 – 2027) highlights the key objectives for the development of the transport sector:
- Improving access to Isolated Regions within the country,
- Addressing the mobility needs of the growing population while urbanization rate is increasing,
- Improving integration across transportation modes,
- Reestablishing the river, currently under-utilized, as a backbone component of the National Transport System,
- Overall, reinforcing safety-systems, regulations, institutional capacity fostering transport infrastructure financing and private sector involvement.
The National Transport Policy links investments in transport with other sectoral outcomes around Trade, Agriculture, Tourism, and public / private sector relations policies.
The project aims to quantify transport infrastructure adaptation needs and provide a prioritized and evidence-based list of adaptation and resilience solutions that could be integrated in the upcoming transport infrastructure development investments.
Learning from the implementation in Ghana, the Africa Adaptation Acceleration Program will provide technical assistance to include climate adaptation and resilience solutions in the Integrated Transport Master Plan.
- Data collection and analysis for transport assets and existing services (including spatial data on trade flows, access to healthcare, and other social and economic factors)
- High resolution spatial analysis and climate modelling of transportation infrastructure and expected hazards in different climate scenarios
- Climate Risks assessment with direct and indirect damages caused by projected climate change. This assessment will quantify financial, economic, and social damages, including impacts on women and vulnerable communities.
- Identify, appraise, and prioritize adaptation and resilience options
- Prioritized and financed pipeline of climate resilient transport infrastructure projects in the Gambia
- Identified wins for transport sector investments that can be linked to planned investments
- A strong basis for developing tools and methodologies that can be scaled up more rapidly by other partners, including MDBs
- Assessed and quantified climate risk for transport infrastructure, mentorship, and resources to thrive
- Identified, appraised, and prioritized adaptation and resilience options
- Link the national assessment with MDB investment planning cycles and other downstream investment planning opportunities
3000,000 Euros (AAAP Upstream Facility)
African Development Bank, Global Center on Adaptation host dialogue to look at climate risks facing Gambia’s Port of Banjul Fourth Expansion Project
The African Development Bank and the Global Center on Adaptation hosted a virtual dialogue on Monday last week to discuss climate adaptation related to the Port of Banjul Fourth Expansion Project in Gambia.
The proposed project will increase cargo handling and storage capacity of the terminal in order to cope with increasing cargo volumes and trade.
The dialogue was attended by officials from Gambia’s Port Authority, the National Environment Agency, the National Roads Authority, the Department of Fisheries, the Department of Parks and Wildlife Management, the Department of Water Resources, Maersk Line Gambia, clearing and forwarding agency HM Trading, the Great Institute and civil society. The discussions centered on the climate hazards the Port of Banjul is exposed to, and the impact of these hazards on the Port’s assets, operations, and services.
The African Development Bank and European Investment Bank are considering financing the proposed expansion of the Port of Banjul, estimated at $114 million. To this end, the African Development Bank has committed $531,275 to the Gambia Port Authority to finance a feasibility assessment and investment preparation studies to lay the groundwork for the project.
Within the framework of the Africa Adaptation Acceleration Program (AAAP) – a partnership between the African Development Bank and the Global Center on Adaptation (GCA), GCA is providing technical
assistance worth around €200,000 to mainstream climate resilience into the Expansion Project, utilizing cutting-edge climate analytics to identify and quantify the impacts of physical climate risk on the investment and provide adaptation investment options to climate-proof the investment.
The findings from the climate analytics revealed that climate hazards could lead to cumulative economic damage to the Port of Banjul estimated at $27 million over the next 30 years. This is about 23% of the estimated investment required to upgrade the Port of Banjul. It also emerged that the Port could lose up to 3% of its revenue annually due to the impacts of physical climate risks.
Gambia - Banjul Port 4th Expansion Project
The Banjul Port 4th Expansion Project aims to enhance port infrastructure capacity, facilitate trade facilitation and regional connectivity in the West African sub-region. This regional infrastructure project will enhance economic growth and poverty reduction whilst reducing the transaction costs associated with regional trade. The proposed Banjul Port expansion and modernization Project will also serve as a catalyst for strengthening The Gambia’s position as a major trade and transport corridor hub within the West Africa sub region.
The Port expansion aims to support the economic development of The Gambia, by enhancing its strategic position and competitiveness as a transit and trans-shipment hub in the wider West Africa region.
- Utilizing cutting-edge climate analytics to identify and quantify the impacts of physical climate risk on the investment
- Delivering high resolution climate risks assessments, adaptation and resilience investment options to climate-proof the investment against the impacts of physical climate risks
- Extension of the port jetty by 345 meters to accommodate up to three ships simultaneously instead of one currently
- Provide for the expansion of the container terminal area by 22,000 m2 to create space for unloading ships
- Replacement of a non-functioning ferry plying the Banjul and Bara crossing and widening port access roads by 3km to ease congestion
- Complete and widen the Bund Road access to facilitate traffic flow in and around the access roads leading to the Port of Banjul
- Relocate its current Head Office Complex away from the main operational zone
- Construct a new Container Terminal
- Procurement of Information and communication processing systems for efficient linkages between customs and the terminal operating system
- Significantly reduced ship turnaround time and cut costly congestion and surcharges, enabling reductions in sea freight costs and demurrage payments
- Boost the facility’s capacity to meet growing traffic and improve efficiency in operations and management as it digitizes its procedures
- Climate-friendly and climate-resilient port infrastructure by introduction of green and low-carbon emission ferries
- Empower women's groups through gender-sensitive procurement and provide jobs, especially for the youth
AfDB Investment of USD 44.5 Million of total USD 115 Million
Reinforcing Resilience to Food and Nutrition Insecurity in the Sahel (P2-P2RS)
The Sahel, which lies between the Sahara Desert to the north and tropical savannas to the south, is one of the largest semi-arid/arid sub-regions globally. As such, the region is highly vulnerable to climate change and other uncertainties. The impacts of climate change may have critical socio-economic consequences for the Sahel, including poor agricultural yields, increased frequency of natural disasters. Already, the number of people in the Sahel suffering from chronic food and nutrition insecurity, poverty and vulnerability to the effects of climate change is rising steadily.
A lasting solution to food and nutrition insecurity in the Sahel requires building resilience to climate change, long-term agricultural sector financing and developing trade and regional integration. Sustained, longer-term investments in household resilience can significantly reduce the cost of emergency assistance, ultimately breaking the cycle of recurring famine. This is the most cost-effective intervention option which meets the basic needs and preserves the dignity of the populations of the Sahel. This idea is central to the Programme to Build Resilience to Food and Nutrition Insecurity in the Sahel (P2RS)
The overall objective of the P2-P2RS is to contribute to the substantial improvement of the living conditions and the food and nutritional security of the populations of the Sahel region.
Specifically, the program aims to i) strengthen the resilience to climate change of agro-sylvo-pastoral producers, including through promotion of climate-smart agricultural technologies in the Sahel and the development of climate intelligent villages; ii) develop the agro-sylvo-pastoral value chains, including through the development and improvement of hydro, meteorology and climate services; and iii) support regional institutions (CILSS, APGMV, CCRS) to strengthen adaptive capacity in the Sahel.
- Design digital adaptation solutions (Digital Climate Advisory Services, DCAS) for the Sahel context
- Investment readiness and infrastructure, institutional and farmer capacity needs for DCAS
- Feasibility study to integrate DCAS into agricultural extension and agrometeorological advisory to smallholder farmers and pastoralists
- 1 million rural households have access to digital or data-enabled climate-smart technologies
- 500,000 smallholders have adopted adaptation practices
- 5 million smallholders have access to climate services;
- Development and improvement of hydro, meteorology and climate services
- The development of climate-intelligent villages
- Promotion of climate-smart agricultural technologies in the Sahel
- Resilience to food and nutrition security built for the targeted populations
USD 300 million
Direct Access Modality to access the Green Climate Fund
Africa is under-served by adaptation finance. Africa received USD 7.9 billion of an annual average of USD 46 billion in adaptation finance for 2019 and 2020. There is a large disparity between climate finance pledged, finance approved, and finance disbursed by the multilateral climate funds. As of January 2022, only 9.23% of global climate financing was earmarked for sub-Saharan Africa for adaptation purposes. Almost one third of the Green Climate Fund’s (GCF's) Direct Access Entities (DAEs) are in Africa, but only 11 out of 54 countries have at least one national accredited entity. DAEs are only accredited for projects with budgets below USD 50 million and are therefore limited in their ability to access funding for larger projects.
This project will develop a concept note as a starting point for a full funding proposal to the GCF. To achieve this, actions will include a desk review of national climate-related development strategies and reference documents in the target country; identification of a promising project idea, in close collaboration with relevant stakeholders; and facilitation of a consultative workshop to discuss the project’s rationale, main intervention areas and implementation arrangements.
Through the Technical Assistance Program (TAP), the Global Center on Adaptation (GCA) will accelerate the mobilization of adaptation finance. Through the direct access modality, GCA will enhance local capacity to formulate robust concept notes for funding consideration by the Green Climate Fund.
AAAP will support the climate risk assessment studies requested by the GCF.
- Four robust project/program concept notes and pipeline developed, for Burkina Faso, Democratic Republic of Congo, Niger and Nigeria.
- For the Democratic Republic of Congo, new sources of climate finance for adaptation and resilience investments identified.
- Development of a roadmap with key actions to prepare the full funding proposal, including the necessary complementary studies, the evaluation of the cost of these studies and the cost of the full funding proposal.
- Relevant initiatives or projects planned or underway and implemented in the project intervention areas
- Development of a portfolio of paradigm-shifting adaptation projects and programs, i.e., development of concept notes, supporting and enhancing funding proposals.
- Building capacities for adaptation finance planning, mobilization and implementation, i.e., Climate Public Expenditure Reviews.
- Direct Access strengthening with the aim to diversify and to increase the delivery channels, i.e., New Accreditation and Accreditation upgrades.
DRC: USD 58.75 million
Burkina Faso: USD 40 million
Niger: USD 50 million
Nigeria: USD 50 million
Total: USD 198.75 million
African Development Bank Group approves $379.6 million Desert to Power financing facility for the G5 Sahel countries
The Board of Directors of the African Development Bank Group has approved the Desert to Power G5 Sahel Financing Facility, covering Burkina Faso, Chad, Mali, Mauritania, and Niger. The Bank envisages to commit up to $379.6 million in financing and technical assistance for the facility over the next seven years.
The Desert to Power G5 Financing Facility aims to assist the G5 Sahel countries to adopt a low-emission power generation pathway by making use of the region’s abundant solar potential. The facility will focus on utility-scale solar generation through independent power producers and energy storage solutions. These investments will be backed by a technical assistance component to enhance implementation capacity, strengthen the enabling environment for private sector investments, and ensure gender and climate mainstreaming.
The facility is expected to result in 500 MW of additional solar generation capacity and facilitate electricity access to some 695,000 households. Over the lifespan of the project, it is expected to reduce carbon emissions by over 14.4 million tons of carbon dioxide equivalent.
The Board of the Green Climate Fund approved $150 million in concessional resources in October 2021 for the facility, which is expected to leverage around $437 million in additional financing from other development finance institutions, commercial banks and private sector developers. The Global Center on Adaptation is providing technical assistance to strengthen adaptation and resilience measures undertaken in the facility as part of the Africa Adaptation Acceleration Program in partnership with the African Development Bank.
The African Development Bank’s Vice President for Power, Energy, Climate Change and Green Growth, Dr. Kevin Kariuki said: “The innovative blended finance approach of the Desert to Power G5 Sahel Facility will de-risk, and therefore catalyze, private sector investment in solar power generation in the region. This will lead to transformational energy generation and bridge the energy access deficit in some of Africa’s most fragile countries.”
Dr. Daniel Schroth, the Bank’s Acting Director for Renewable Energy and Energy Efficiency, added: “The facility will also support the integration of larger shares of variable renewables in the region’s power systems, notably through the deployment of innovative battery storage solutions and grid investments.”
The facility will be implemented as part of the broader Desert to Power initiative, a flagship program led by the African Development Bank. The objective is to light up and power the Sahel region by adding 10 GW of solar generation capacity and providing electricity to around 250 million people in the 11 Sahelian countries by 2030.
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The Desert to Power G5 Sahel Financing Facility
The Sahel region faces more challenges to achieving sustainable development in the face of poverty, insecurity and climate change than perhaps any other. The region also includes five of the ten poorest nations in the world (Burkina Faso, Chad, Mali, Mauritania, and Niger). Together these form the G5 Sahel, where more than three quarters of the 86 million people who live there have no access to electricity.
This region also has some of the highest solar energy irradiation and photovoltaic potential in the world, though economic development is constrained in part by the energy supply gap. To take advantage of this opportunity, the Desert to Power G5 Sahel Financing Facility aims to tap this ‘free’ resource by increasing solar power generation and electricity access, while addressing structural challenges in the energy sector.
The overall aim is to assist G5 Sahel countries to adopt low-emission solar power generation through independent power producers and energy storage solutions. Investments are to be supported by technical assistance, gender and climate mainstreaming, and encouraging private sector buy-in.
- Add 500 MW of additional solar generation capacity, and connect 695,000 households to an electricity supply.
- Ensure low-emission development to mitigate effects of climate change, by directly reducing emissions by 14.4 Mt CO2e over 25 years.
- Strengthen regional grid management capacity by building human, social, and institutional capital.
- Create harmonized gender-responsive regulatory frameworks for the electricity sector to lower investment barriers and promote gender-responsive approaches.
- Contribute to improving the quality of life of women and men through more sustainable, reliable and affordable energy access by households and workplaces, and supporting productive uses of electricity, industrialization, and basic public services such as health and education.
- Expand opportunities for manufacturing and industries to provide employment and build prosperity.
The Facility is a part of the broader Desert to Power Initiative, that by 2030 aims to light up and power the Sahel region by adding 10 GW of solar generation capacity and provide electricity to 250 million more people in 11 countries from Senegal to Djibouti.
- Rapid climate risk assessment of transmission systems to provide insights to the location of solar plant
- Upstream capacity building through a regional Masterclass on Climate-Resilient PPPs
- Climate risk assessment to quantify impacts of climate hazards on assets, services, and people
- Adaptation and resilience investment options appraisal, to identify and prioritize adaptation and resilience options and present recommendations of investment for each project;
- Advisory services for results and evidence-based planning, management and M&E of interventions
- Improved investment climate and a sustainable market for independent solar power producers created.
- knowledge and technology transfer facilitated to create opportunities for SMEs in the value-chain.
- Environmental co-benefits driven to increase access to electricity and reduce the need for firewood, reduce deforestation and build resilience to climate change.
- Countries in the Sahel region enabled to transform desert areas into an opportunity to meet their energy needs using clean technologies while delivering multiple adaptation co-benefits.
- Strengthened capacity of national institutions in G5 Sahel countries to ensure long-term sustainable ilitydevelopment of their national renewable energy sectors.
- Reliable environment for private sector solar project financing created.
AfDB investment USD 379.6 million
Total of USD 966.7 million
Amount: AfDB investment of USD 379.6 million, of a total of USD 966.7 million