HomeNews & InsightsNEPAD and USAID Signed Multi-partnership Agreement to Provide Clean and Affordable Energy to Millions of Africans

NEPAD and USAID Signed Multi-partnership Agreement to Provide Clean and Affordable Energy to Millions of Africans

African Union’s New Partnership for Africa’s Development (NEPAD) Agency signed a memorandum of understanding (MOU) with USAID to implement Power Africa Initiative, which was unveiled by President Barack Obama in 2013. In support of NEPAD's Program for Infrastructure Development in Africa (PIDA), Power Africa initiative aims to accelerate Africa's economic transformation and sustainable development by increasing access to reliable, affordable and climate resilient energy.

The Initiative involves twelve U.S. Government agencies, African governments, the private sector, and other partners such as the World Bank, and the African Development Bank (AfDB), to add more than 30,000 megawatts to provide access to clean electricity to 60 million households and businesses in sub-Saharan Africa.

As part of the MOU, Power Africa will support NEPAD’s process to finalize the selection of priority energy projects under the Africa Power Vision (APV) throughout sub-Saharan Africa and look for opportunities to help bring them to financial close.

USAID is focused primarily on projects in the six African countries receiving priority under Power Africa, namely Tanzania, Kenya, Ethiopia, Ghana, Nigeria and Liberia.

Power Africa and NEPAD will work together to identify opportunities for collaboration between Power Africa transaction advisors and NEPAD officials in order to advance select Africa Power Vision (APV) projects. AVP is a roadmap designed by African leaders to accelerate the effective implementation of priority energy projects.

“During the recent U.S.-Africa Leaders’ Summit that President Obama hosted in Washington, D.C., many African leaders talked about how Power Africa can help transform the economies in sub-Saharan Africa and improve the lives of millions,” said Earl Gast, US Agency for International Development Assistant Administrator for Africa, who was present for the signing ceremony.

“The Africa Power Vision that NEPAD is developing will allow dozens of governments to focus their efforts and resources on making specific projects advance,” Mr. Gast said.

“Energy availability, accessibility, affordability and security are fundamental prerequisites for any meaningful socio-economic development in Africa. Through the MoU, the expertise, resources and outreach available to both NEPAD Agency and Power Africa will play an important role in achieving this goal for the majority of the African Population, “says Dr Ibrahim Mayaki, NEPAD Agency Chief Executive Officer.

According to internal sources, private companies would implement all Power Africa projects, and USAID would offer technical assistance to progress projects towards “bankability”. It would also support the appointment of project transaction advisers.

Nepad Agency energy division head Professor Mosad Elmissiry said the program was mostly aligned with the pipeline of 15 priority energy projects identified by under Nepad’s Program for Infrastructure Development in Africa (PIDA).

Professor Elmissiry stressed that the plan was set to achieve results. “Existing frameworks such as PIDA, APV and Power Africa have come under one roof for effective implementation,”he said.

Last modified on Tuesday, 30 September 2014 16:17

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