Business

AfDB cites inadequate advice on energy pact

Itezhi Tezhi Power Corporation project itezhi tezhi hydro power station

KABANDA CHULU, Lusaka
AFRICAN Development Bank (AfDB) legal support facility director Stephen Karangizi says inefficiency and lack of quality advice during negotiations of transactions is the major contributor to the exorbitant cost of many African energy projects.
Speaking at the ministerial session hosted by the AfDB legal support facility at the 17th Africa Energy Forum in Dubai last week, Mr Karangizi said AfDB is committed to supporting African governments in commercial negotiations.
He urged international investors to secure business transactions that will be fair and balanced for company shareholders and stakeholders in government.
“The major contributor to the exorbitant cost and protracted nature of many African energy projects in Africa is inefficiency at the negotiating table caused by the fact that investors and government are not consistently speaking the same language or the lack of quality advice during negotiations of transactions.
“Today there is financing opportunities available for infrastructure projects both public and private. What we need are high-quality strategic projects that are structured and aligned to meet the commitments of African countries and investor expectations,” Mr Karangizi said.
Zambia was represented by Deputy Minister of Mines, Energy and Water Development Charles Zulu while other ministers of energy present came from Mali, Ghana, Rwanda, Uganda, and Sierra Leone.
Many other African countries were represented by senior government officials and heads of utility and regulatory authorities.
The Africa Legal Support Facility is a public international organisation which provides legal assistance to governments related to commercial creditor disputes and contract negotiation and hosted by the AfDB in Abidjan, Côte d’Ivoire.
Currently, it is advising governments on over US$24 billion worth of transactions and energy projects.


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