The African Development Bank at DAVOS Africa: Financing for Development Initiative

Somalilandpage.blogspot.com
4-6-2008

Leveraging Resources for Private Sector Financing

Cape Town, 6 June 2008 – The Private Sector Department of the African Development Bank (AfDB) Group organized an exclusive two-day Financing for Development round table from 3-4 June 2008 at the World Economic Forum on Africa held in Cape Town, South Africa.

The meeting brought together world-class private sector financial institutions that had a fruitful interaction with senior management of the AfDB Group and the World Economic Forum on Financing for Development Initiative.

The meeting discussed ways and means of leveraging Development Finance Institutions (DFIs) capital to catalyze greater private sector investment. The gathering also enabled participants to discuss the African Financing Partnership, the optimal mix of concessional and non concessional lending and private sector views on the effective use of development finance institutions’ resources to catalyze private sector investment in Africa.

The Financing for Development initiative is aimed at developing a public-private financing partnership between multilateral development banks, bilateral development finance institutions, global investment entities, and commercial financial institutions.

The first day of the meeting highlighted the AfDB’s role in catalyzing further Public-Private Partnerships. Interactive discussions focused on engaging the private sector in increasing non-sovereign financing and funding at sub-sovereign levels, establishing investment climate capacity building as a central priority, “learning by doing transaction” programmes, using transactions as critical vehicles, strengthening investment project pipelines through project development support and providing advisory services to governments on Public-Private Partnerships (PPPs) structuring.

Issues related to financing infrastructure projects in Africa were examined and two AfDB Group projects were showcased, namely, the Mmamabula Energy Project in Botswana, presented by CIC Energy Ltd, and the Lekki Toll Road in Nigeria presented by Lekki Concession Company. At the end of his presentation, Mr. Opuiyo Oforiokuman, CEO/Managing Director, Lekki Concession Company Limited, said "Closing the huge gap that exists in the provision of essential basic infrastructure in Africa requires access to long term finance on affordable terms. Raising such finance, however, has proven quite a challenge over the years. It is important, nevertheless, that we don't give up hope, lest we allow poverty to be institutionalized here. The World Economic Forum brings together many of the people, both from Africa and beyond, who can truly make the difference. We therefore look forward to a positive outcome from this key event."

Participants also had the opportunity on the second day of the meeting to focus on the Bank’s initiative on the ‘African Financing Partnership’, a facility developed in partnership with institutions such as the entrepreneurial development bank of the Netherlands (FMO), Proparco, a subsidiary of the French Development Agency (AFD) and the German Private Sector funding agency (DEG). Other DFIs have shown interest in participating in this Partnership, whose main purpose is to harmonize procedures and help member institutions to increase their operations without increasing the processing costs, while maintaining the highest quality standards. The most important issue discussed during the breakfast session was how to seek ways in which the public sector division of labor could better complement and leverage private sector financing.”

Source: AfDB, June 06, 2008

Somalia/ Somaliland Petroleum Potentials Fact!.

Somalilandpage.blogspot.com

The Somali Republic gained independence on July 1, 1960. Somalia was formed by the union of British Somaliland and Italian Somaliland. Rebel forces ousted the Barre’s regime in 1991, but turmoil, factional fighting, and anarchy ensued. The Somali National Movement (SNM) gained control of the north, while in the capital of Mogadishu and most of southern Somalia the United Somali Congress achieved control.
In 1992, responding to the political chaos and humanitarian disaster in Somalia, the United States and other nations launched peacekeeping operations to create an environment in which assistance could be delivered to the Somali people. By March 1993, the potential for mass starvation in Somalia had been overcome, but the security situation remained fragile. On October 3, 1993 U.S. troops received significant causalities (19 dead over 80 others wounded) in a battle with Somali gunmen. When the United States (in 1994) and the UN withdrew (in 1995) their forces from Somalia, after suffering significant casualties, order still had not been restored.
A Transitional National Government (TNG) was created in October 2000 with the three-year mandate of creating a permanent national Somali government. Although they declared their independence, the TNG does not recognize Somaliland as independent republic but has been unable to reunite the country. Peace talks began in late-2002 and are ongoing. Somaliland has refused to participate in these talks saying that while it would welcome peace in former Italian Somalia, Somaliland is an independent country awaiting international recognition.
Somalia's economy, one of the world's least developed, has been further hampered by the country's ongoing internal strife. Reliable economic data is scarce, and the TNG cannot manage the national economy while it struggles to gain control over the country. Livestock production (cattle, goats & sheep) is the mainstay and largest foreign exchange earner of the Somali economy. An outbreak of Rift Valley Fever (RVF) in southern Saudi Arabia and Yemen (the first reported outside Africa) in 2000 led six Gulf States - Saudi Arabia, Bahrain, Oman, Qatar, Yemen and the United Arab Emirates - to ban livestock imports from the Horn of Africa. Middle Eastern countries are considering lifting the ban on livestock in early 2004. Another significant portion of the Somali economy, foreign remittances, have fallen significantly following the US government's closure of the Al-Barakat transfer company, which has been accused of transferring funds on behalf of Osama bin Laden and the Al-Qaida terrorist network. Remittances from abroad are estimated to be $200-$500 million annually.
While the TNG is in the process of reestablishing Somalia's Central Bank. Somalia is unable to receive IMF, and other multilateral aid due to the lack of institutions/financial infrastructure in place.


OIL AND NATURAL GAS
Somalia has no proven oil reserves, and only 200 billion cubic feet of proven natural gas reserves. Somalia currently has no hydrocarbon production. Oil seeps were first identified by Italian and British geologists during the colonial era. Exploration activities were
focused in northern Somalia, and several foreign firms, including Agip, Amoco, Chevron, Conoco and Phillips, held concessions in the area. The firms all declared force majeure following the collapse of the central government.
Exploration activity remains hindered by the internal security situation, and the multiple sovereignty issues. In February 2001 Total signed an exploration agreement with the TNG. The twelve-month agreement grants Total the rights to explore in the Indian Ocean off southern Somalia. Hassan Farah, TNG's Minister for Water and Mineral Resources, stated that the government would provide security during the exploration activities. Several factional leaders have denounced the agreement, and stated that the TNG did not have the authority to sanction the agreement, nor the power to guarantee the safety and security of the exploration operations.
In May 2001, Somaliland signed an agreement with U.K.-registered Rovagold and two Chinese firms, CPEC and CPC, for the right to explore for oil. Dubai-based Zarara Energy also signed an exploration agreement with Somaliland. The Somaliland government has said it will honor, until they expire, the existing contracts foreign companies signed with the Barre regime that are in their territory. None of the firms have resumed operations in Somaliland.
Somalia's petroleum consumption was an estimated 4,000 bbl/d in 2001. The organization officially responsible for all petroleum product distribution and retailing is the cooperative Iskash. The state-owned Iraqsoma Refinery Corporation operated a 10,000-bbl/d refinery outside of Mogadishu, but it has been inoperative since 1991. Total is involved in the downstream sector in Somaliland. It rehabilitated and manages the operations of the oil terminal in Berbera, Somaliland's primary port. Total also supplies fuel to airports located in Berbera and Somaliland's capital of Hargeisa.

Somaliland Government Signs Agreement with UK Oil Company

Somalilandpage.blogspot.com

Jun 01, 2008 at 02:27 AM

Hargeisa.

The Somaliland Ministry of Water and Natural Resources has confirmed that the government of Somaliland has signed an oil exploration agreement with Asante Oil (UK) Limited.

According to the Director-General of the Ministry of Water and Natural Resources, Eng. Ahmed Ibrahim Suldan, Asante Oil (UK) Limited recently purchased the report from the seismic survey conducted in Somaliland by TGS of Norway, and has subsequently agreed to begin drilling towards the end of 2008.

Speaking to reports from the Republican at his office in Hargeisa, Eng. Ahmed Ibrahim also refuted recent rumours that Range Resources and African Oil which are currently conducting similar exploration in the Puntland region of Somalia may encroach into Somaliland territory.

Eng. Ahmed Ibrahim, Director-General of the Somaliland ministry of Water and Natural Resources described these rumours as baseless and stated that the government of Somaliland will protect the natural resources of the country, and described the current exploration in Puntland as merely an attempt by Range Resources and African Oil to sell shares in their companies in order to generate money.

Eng. Ahmed Ibrahim described the recent survey by TGS in Somaliland as extensive one which drawn lots of interest at the recent petroleum convention in San Antonio, Texas.

Source The Republican