Development Partnership Administration Ministry of External Affairs India & Africa Partners in Development Capacity Building Programmes & Lines of Credit.

Development Partnership AdministrationMinistry of External Affairs

India & Africa Partners in Development

Capacity Building Programmes & Lines of Credit

India’s Partnership with Africa

India’s partnership with Africa goes back to the early 20th century when we were fighting colonialism and apartheid.

In the modern era, we have evolved a model of cooperation, which is consultative, responsive and based on our respective development experiences and perspectives.

India’s involvement in capacity building in Africa dates from the 1960’s through our ITEC programme and other facilities for experience sharing.

Over the past 10 years in particular, there has been a significant intensification of our engagement in economic development, institutional cooperation and capacity building.

India-Africa Forum Summits

The India-Africa Forum Summits have imparted a new vigour to our partnership with African countries.

Two Summits have been held so far: in April 2008 in New Delhi and in May 2011 in Addis Ababa

These Summits have laid the foundation of a new architecture for a structured interaction and cooperation between India and our African partners in the 21st century

The IAFS process promotes a unique engagement at three levels – the continental, the regional and the bilateral

Institutional engagementIn implementation of the IAFS decision, conferences and workshops organized include:

Crafts Skill Development Workshop for Women

Special Session on Global Commons & Challenges

Science & Technology Ministers’ Conference

Training programme for Secretary Generals of African

Chambers of Commerce

India-Africa Trade Ministers Conference

First Meeting of India Africa Business Council

Annual CII EXIM Bank Conclaves

Capacity building

Under the ITEC [Indian Technical & Economic Cooperation] programme, short- and medium-term courses are offered in various Indian institutions, covering subjects like Accounts, Audit, Banking, Finance & Management, IT, Telecommunication, SME/Rural Development, Environment and Renewable Energy

Specialized Courses are also offered in in Parliamentary Procedures, Election Management, Mass Communication, Remote Sensing, etc

Capacity building contd…….

Indian experts are deputed to African countries (as per request) to advise host governments or their institutions in specific economic or developmental areas

Indian Army Training Teams deputed to a number of African countries on specific requests.

Training slots offered to African countries in premier Indian defence institutions, including in NDC and DSSC. During 2012-13, 244 army, 115 naval and 76 air force training slots offered to Africa.

Utilisation of ITEC ProgrammesIn Africa

Year Seats allocated

Seats utilised

2008-09 1719 1316

2009-10 1704 1492

2010-11 1857 1743

2011-12 3207 2293

2012-13 3334 2800 (till 13/03/13)

Multilateral ITEC training coursesIn Africa

  2012-13 2011-12 2010-11 2009-10 2008-09 2007-08AARDO 70 70 55 55 55 50

African Union 30 30 13 13 13 10

Pan African Parliament 10 20 5 5 5 3

UNECA (UN Eco. Com. For Africa), Addis Ababa 30 30 15 15 15 10

East African Community 15 25 10 10 10 10

 Total 155 175 98 98 98 83

Scholarships & FellowshipsICCR Scholarships at Indian Universities

Year Seats allocated

Seats utilised

2009-10 532 238

2010-11 532 207

2011-12 532 207

2012-13 900 (scholarship includes airfares)

Admission process is underwaySpecial agricultural scholarships (75 per year): 71 and 85

utilised in 2010-11 and 2011-12. 102 applications under process for 2012-13.

C.V. Raman Scientific Fellowships (104 per year): 85 and 79 utilised in 2010-11 and 2011-12.

Special training courses (500 per year): 449 and 929 utilised in 2010-11 and 2011-12.

Capacity building institutionsAs per decisions taken at the India-Africa Forum Summits, India has committed to establishing about 100 capacity-building institutions to build and strengthen capacities at the pan-African, regional and bilateral levels. An indicative list of the institutions is below:

India-Africa Institute of Information Technology India-Africa Institute of Foreign Trade India-Africa Institute of Education Planning and

Administration India-Africa Diamond Institute India-Africa Civil Aviation Academy India-Africa Institute of Agriculture and Rural

Development India-Africa University for Life and Earth

Sciences

Capacity building institutions contd……..

We have also launched an initiative of establishing and strengthening common infrastructure and facilities for pan-African development of some key industry sectors. Examples are:

India-Africa Food Processing Cluster India-Africa Textile Cluster

Year Exports Imports Total

2005-06 7.00 4.80 11.80

2006-07 10.26 17.72 27.98

2007-08 14.19 20.47 34.66

2008-09 14.82 24.73 39.55

2009-10 13.43 25.61 39.04

2010-11 20.85 31.95 52.80

2011-12 24.67 43.06 67.73

Apr-Dec 2012

21.13 31.59 52.72

21 out of 34 African LDCs have acceded to the India-Africa Duty Free Tariff Preference (DFTP) Scheme.

India-Africa trade has seen significant growth over the last 8 years :

India-Africa Trade Promotion

In US Dollars billion

Lines of Credit Lines of Credit [LoCs] have been an increasingly significant

part of India-Africa development cooperation since 2003-04.

They are concessional loans intended to set up infrastructure projects and to share Indian experience in developmental initiatives .

LoCs have financed a wide range of projects in agriculture, irrigation, food processing, rural electrification, IT and infrastructure [roads, railways, cement, power, etc].

The objective is to create durable assets and build sustainable institutions.

At IAFS-I & II, we have committed to a quantum jump in the targets of LoCs in the coming years.

Year-wise approvals and disbursements of LoCs [as on February 28, 2013]

In US Dollar millions

Africa Asia Grand Total Year Approval Disbursed Approval Disbursed Approval Disbursed

2002-03 10.00 - 200.00 - 210.00 0.00

2003-04 100.00 - 115.36 - 215.36 0.00

2004-05 99.87 49.90 150.00 2.80 284.87 57.94

2005-06 1,037.6 97.52 120.00 158.42 1,238.00 284.71

2006-07 141.50 234.72 292.34 118.90 443.44 371.07

2007-08 524.50 338.50 166.77 38.11 712.26 395.05

2008-09 470.10 288.00 120.00 69.72 650.00 399.04

2009-10 486.50 352.66 1,403.79 35.70 1,900.05 404.91

2010-11 1,055.07 398.95 759.92 213.12 1,814.99 620.25

2011-12 1,206.28436.76

100.00270.06

1,330.28720.28

2012-13 422.38 373.92 355.96 350.05 801.05 761.34Total 5,553.80 2,570.94 3,784.14 1,256.89 9,600.30 4,014.60

Project selection

Development priorities of the partner country

Assessment of India’s strengths

Bilateral consultations, through the diplomatic missions in the respective countries to identify sectors and projects

Thorough assessment of project feasibility

If procurement for a project, a credible timetable to ensure the supplies integrate with the project of which the procurement is a part

Procedural RequirementsA project report, with detailed project description,

technical feasibility, environmental impact assessment, schedule of implementation, financial appraisal, breakdown of cost estimates etc.

LoC terms - interest rates, moratorium period and tenor - depend on World Bank classification of the country

Relaxation in terms are made on a case-by-case basis, depending on requirements.

The project is to be implemented by Indian entities

Procedural Requirements contd…...Goods and services for minimum 75% value of the LoC

contracts are to be sourced from India (with a provision for some relaxation, particularly where extensive civil works are involved)

For complex projects, Project Management Consultant is essential to assist in preparation of DPR, floating tenders, selecting contractors and monitoring project implementation. PMC contract can be covered in the LoC with GoI’s concurrence

African governments would follow their rules and procedures for selection of contractors and award of contracts, but they are expected to be transparent and fair, using open competitive bidding

A comprehensive project report sent to GoI through Indian Embassy/High Commission.

  GoI conveys approval for LoC after appraising the

project.  EXIM Bank sends a draft LoC agreement to be

signed by the African Government or its authorized agency/department.

  PMC (for complex projects) selected first and then

contractor – both by open, competitive bidding. Participation limited to Indian companies;

Steps in identification & implementation of LoC projects

Contract sent to EXIM Bank, which approves after verifying fulfillment of all procedures

  Implementing agency’s bank opens Letter of Credit

(L/C) in favour of the contractor.

EXIM Bank pays contractor directly on completion of each project milestone [as certified by the host country] and debits the amount to the LoC account of the host Government.

Host Government certifies completion of the project to Indian Embassy/High Commission

Steps in identification & implementation of LoC projects

Further fine-tuning Better information dissemination on capacity

building programmes

Dialogue on IAFS institutions so that they meet host country expectations

Professionally prepared techno-economic feasibility studies: India can offer assistance for this

Transparent selection procedures for consultants and contractors

Further fine-tuning

Contracts should enforce strict quality standards and penalties for delays

Synchronization in projects with multiple sources of funding and supplies

Robust mechanisms for monitoring project implementation

Issues relating to LoC terms and conditions