FINESSE newsletter
African Ministerial Conference on hydropower and sustainable development

The African Ministerial Conference was held from 5 to 9 March in Johannesburg, South Africa with the objective to agree on the plan of action for developing huge hitherto untapped hydropower potential on the continent. The conference was attended by the energy and water ministers, chief executive officers of power utilities, experts, civil society organizations and donors. The African Development Bank was represented by Mr. A. R. Rakotobe (Mission Leader), Director Infrastructure Department, and Mr. B. Ram, Principal Power Engineer, Public Utilities Division North, East and South Region.

Before the Ministerial meeting, five panels were assembled to review the key questions relating to (i) Water Resource Exploitation (ii) Economics (iii) Financing (iv) Human resources and (v) Environmental and Social impacts with panelists drawn from the multilateral financial institutions, utility experts, civil society organizations and the UN officials. Mr. B. Ram represented the Bank on the three panels, namely (i) Water Resource Exploitation (ii) Economics and (iii) Financing of hydropower projects.

Mr. A. R. Rakotobe delivered a statement on behalf of the Bank in the Ministerial meeting highlighting the Plan of Action agreed at G8 conference at Gleneagles’, to create a Clean Energy Investment Framework for accelerating investment in clean energy and energy efficiency, and for developing new approaches for adaptation. The Investment Framework will complement, and provide a useful input to, the ongoing review of the ADB Energy Policy, and subsequently, the development of ADB Energy Efficiency and Renewable Energy Strategy. The Statement also underscored that, since Africa is in acute competition with other continents as a destination for investment, African countries need to pool their resources. The pooling of resources and stepping up regional cooperation is a must since without it, the African countries cannot provide energy services at least cost to compete effectively with other nations. (For the full statement, click here.)

Given the complexity and the huge financial resources required for a number of bankable projects, the African Development Bank called for forging alliances and coalitions of donors to mobilize resources. In this regard, the Infrastructure Consortium for Africa (ICA) recently established at the Bank as a multi-donor initiative, is poised to assist in the necessary donor coordination and mobilization of resources.

Statements were also made by the representatives of the World Bank, Business Associations, and Civil Society Organizations. The African Ministers representing the interest of their regions delivered the key note addresses. The Ministers, after considering the recommendations made a joint declaration and agreed upon a joint plan of actions to unlock hydropower potential of Africa. The Joint Plan of Actions as agreed by the Ministers is summarized below:
 

    1. Develop a holistic Africa Energy Vision (2025) combining water and energy sectors under the auspices of the African Union;
    2. Consider holding formalized meetings within the existing forums such as FEMA, AMCOW and AMCEN to ensure coordination and follow up between the Ministers of Finance, Energy, Water and Environment for monitoring implementation of this Vision;
    3. A Ministerial Session to be held during the World Summit on Sustainable Development +5, should focus on developing Africa’s hydropower resources;
    4. Towards developing hydropower, the conference recommends Africa Energy Commission play a bigger role than it does presently. Among others, the Commission is recommended to provide a permanent secretariat for African Hydro Symposium in collaboration with the International Hydropower association; to develop, in association with the UN-Energy Africa, a regular monitoring and reporting system on hydropower; to maintain and disseminate comprehensive information about Africa’s hydropower; and to devise strategy to assist member countries in building, utilizing and exchanging technical expertise.
    5. The outcome of the African Ministerial Conference should be tabled before the conference of the River Basin Organizations and Lake Basin Organizations.
    6. The Ministers should adopt a code of practice towards ensuring that indigenous people equitably benefit from the hydropower development.
    7. Establish centers of excellence for development of renewable energy sources
    8. AMCOW is recommended to develop guidelines to promote inter-basin water transfer to address shortages faced by one country and avoid flooding of the other.
    9. Integrate energy and water sector ministries for holistic development of water resources.
    10. Together with others, a comprehensive evaluation of Inga is recommended for meeting energy needs of Africa.
    11. It is noted that the lack of human resources and capacity is major obstacle to developing hydropower resources.
    12. The Ministers requested the development partners to provide more resources to the Infrastructure Project Preparation Facility hosted by the ADB.
To assist in the implementation of the Joint Ministerial Plan of Actions, the Bank will actively
  • work hand in hand with main donors such as the World Bank to evolve a common understanding and approach to develop water resources for multiple uses;
  • support capacity building to develop institutions and technical and managerial human resources; and
  • mobilize more resources for preparing projects and enhancing NEPAD Infrastructure Project Preparation Facility (IPPF).
The conference web site does give more detailed information about the conference and the outcomes at http://www.hydropowerconference2006.co.za
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African Development Bank
Sustainable Development and Poverty Reduction Unit (PSDU)

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