East Africa to pool funds for new railway
Posted: 10 May 2010, 10:25
EAST AFRICA TO POOL FUNDS FOR NEW RLY
Posted on 07 May 2010 by Railways Africa Editor
Each of the five East African Community (EAC) member states are to contribute equally to the construction of a new railway system estimated to cost $US25 billion.
Speaking to The EastAfrican newspaper at the EAC’s 3rd Investment Conference in Kampala, EAC deputy secretary general in charge of planning and infrastructure Alloys Mutabingwa said the region had ruled out the traditional approach of “begging our development partnersâ€, for fear of delaying its projects.
EAC is also exploring how it could offer infrastructure bonds to raise more resources. “If Kenya has been able to succeed why not at the regional level. It is a question of commitment,†Mutabingwa was quoted saying.
Uganda is confident that the engineering section of its army will be able to help with railway construction. “We should only seek foreign assistance to guide us,†President Yoweri Museveni told the conference, whose theme was “EAC common market: the preferred investment destination.â€
Even though the EAC hopes to do without foreign funding to build the new railway, the paper reports, “more than 10 private firms have reportedly shown interest while the US and China have started lobbying to invest in the sector.â€
“They can come in, but on our terms. This is a profitable venture that has attracted everybody’s attention but the private sector will participate under the public-private- partnership (PPP) arrangement,†Mutabingwa said.
The partner states’ contributions are to be consolidated into a proposed railways’ fund to be managed by the East African Development Bank. An infrastructure agency will be formed to co-ordinate both human and capital resources, currently the responsibility of the EAC secretariat.
“As a matter of principle we have proposed an equal percentage across the board. Each member state will contribute from its budget,†Mutabingwa was quoted saying.
The view of several experts – that the existing railway should be upgraded rather than build an entirely new system – has been rejected. “Our latest position is that we should have a modern railway line that can benefit future generations even though it may not have immediate returns. We are looking at it purely from a business standpoint,†a spokesman explained.
EAC director of infrastructure Phillip Wambugu said East Africa “will introduce mass transit systems to decongest cities and re-align economic zones according to planned infrastructure.â€
Posted on 07 May 2010 by Railways Africa Editor
Each of the five East African Community (EAC) member states are to contribute equally to the construction of a new railway system estimated to cost $US25 billion.
Speaking to The EastAfrican newspaper at the EAC’s 3rd Investment Conference in Kampala, EAC deputy secretary general in charge of planning and infrastructure Alloys Mutabingwa said the region had ruled out the traditional approach of “begging our development partnersâ€, for fear of delaying its projects.
EAC is also exploring how it could offer infrastructure bonds to raise more resources. “If Kenya has been able to succeed why not at the regional level. It is a question of commitment,†Mutabingwa was quoted saying.
Uganda is confident that the engineering section of its army will be able to help with railway construction. “We should only seek foreign assistance to guide us,†President Yoweri Museveni told the conference, whose theme was “EAC common market: the preferred investment destination.â€
Even though the EAC hopes to do without foreign funding to build the new railway, the paper reports, “more than 10 private firms have reportedly shown interest while the US and China have started lobbying to invest in the sector.â€
“They can come in, but on our terms. This is a profitable venture that has attracted everybody’s attention but the private sector will participate under the public-private- partnership (PPP) arrangement,†Mutabingwa said.
The partner states’ contributions are to be consolidated into a proposed railways’ fund to be managed by the East African Development Bank. An infrastructure agency will be formed to co-ordinate both human and capital resources, currently the responsibility of the EAC secretariat.
“As a matter of principle we have proposed an equal percentage across the board. Each member state will contribute from its budget,†Mutabingwa was quoted saying.
The view of several experts – that the existing railway should be upgraded rather than build an entirely new system – has been rejected. “Our latest position is that we should have a modern railway line that can benefit future generations even though it may not have immediate returns. We are looking at it purely from a business standpoint,†a spokesman explained.
EAC director of infrastructure Phillip Wambugu said East Africa “will introduce mass transit systems to decongest cities and re-align economic zones according to planned infrastructure.â€