East Africa Trade and Transport Facilitation Project
- Reference: P-Z1-DZ0-003
- Approval date: 29/11/2006
- Start date: 22/08/2007
- Appraisal Date: 25/03/2006
- Status: OngoingOnGo
- Implementing Agency: EAST AFRICAN COMMUNITY (EAC)
- Location: KENYA, UGANDA, TANZANIA, BURUNDI, RWANDA
The project is expected to include the following major components:
(A)Support to EAC Customs Union Implementation: This will include: (a) long term support to the EAC Secretariat for the implementation of the CU; (b) equipment to implement a modern customs integrated system and common database linking the customs departments in the member states and Rwanda to the EAC Customs directory in Arusha; and (c) support the strengthening and modernization of national customs departments.
(B)Institutional support for Transport Facilitation: This will involve: (a) strengthening of the NCTTCA; (b) supporting Governments to establish an appropriate management mechanism for the Central Transport Corridor connecting Dar-es-Salaam with the Great Lakes countries; and (c) helping improve the regional transport policy and harmonize transport regulations.
(C)Investment Support for Trade and Transport Facilitation: The proposed support includes: (a) enhancing security and facilitation (e.g. Community Based IT Systems) in the ports of Mombasa and Dar-es-Salaam; (b) improving goods security by financing a regional/national electronic cargo tracking system from the ports of Mombasa and Dar es Salaam throughout the EAC and Rwanda; (c) financing the establishment of key joint border posts at main cross-border posts within the region; (d) investing in Inland Container Depots (ICDs), intermodal infrastructure; and (e) supporting the implementation of a common Weigh Bridges policy.
(D)Support to Kenya and Uganda Railways Concessions: This will include: (a) technical support to the KRC and the Uganda asset holding company; (b) support for the retrenchment and social mitigation of Kenya Railways Corporation (KRC) staff; (c) support for establishment of a Pension Fund for the staff of KRC; (d) support for the Kenya Relocation Action Plan (RAP) implementation; (e) investment support for Uganda Railways Corporation (URC); and (f) support to the Joint Railways Concession through the provision of PRGs to RVRC subsidiaries (concession companies in Kenya and Uganda set up to enter into and implement the Concession Agreements) to backstop GoU/URC and GoK/KRC contractual obligations to the concession companies under the two Concession Agreements.
The objectives of the project are to:
1) Enhance transport services along key international transport corridors in East Africa (EA) 2) Strengthen trade growth in the region by securing an effective EAC Customs Union open to partner states, reducing transit time, non tariff barriers and uncertainty along the region's main logistics chains; and 3) Improve railway services in Kenya and Uganda.
These objectives will be achieved by
(i) providing technical assistance and equipment to implement the joint customs administration in the EAC
(ii) providing technical assistance, financial support and equipment to improve efficiency at the main ports, border posts and regional road, and
(iii) jointly concesssioning Kenya Uganda railways.
Under the NEPAD initiative, an overarching goal is to enhance regional development and economic integration in Africa in order to improve international competitiveness. "Trade corridors without borders" is the first of four priority programs for the transport sector specified in the NEPAD Infrastructure Short Term Action Plan.
The project will contribute to the implementation of the Custom Union, and improve trade facilitation in the region. It will also support the broader goal of increasing the regional economic integration of East Africa by improving border crossing conditions and address the special transportation needs of the Great Lakes Landlocked countries.
MAKAJUMA George Adongo - OITC2