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Partner States Unite to Propel Northern Corridor Projects Forward

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A regional meeting in Kampala, brought together delegations from Kenya, Rwanda, South Sudan, and Uganda to review the Northern Corridor Integration Projects (NCIPs). Uganda highlighted its progress, including securing 58% of the right-of-way for the Standard Gauge Railway, implementing the One Network Area initiative, and investing $376 million in the East African Crude Oil Pipeline

A major step forward in regional economic integration was unveiled during a two-day Finance and Private Sector Participation Cluster Regional meeting in Kampala, Uganda. Delegations from Kenya, Rwanda, South Sudan, and Uganda convened to review the progress of the Northern Corridor Integration Projects (NCIPs), focusing on finance and private sector participation.

Uganda’s progress under the NCIPs was highlighted by Patrick Ocailap, representing Finance Minister Matia Kasaija. He detailed Uganda’s achievements, including the acquisition of 58% of the right-of-way for the Standard Gauge Railway (SGR) on the Eastern Route (Malaba-Kampala) and the signing of the civil works contract. He also pointed to Uganda’s success in implementing the One Network Area initiative since 2014, which enables flat rates for voice, data, and SMS across partner states.

Uganda has further made strides in the financial sector, with the approval of the National Payment System Act, 2020, allowing mobile financial services to be interoperable across operators. Additionally, the establishment of a Project Preparation Facility (PPF) under the National Planning Authority will aid project preparation and structuring.

In the oil sector, Ocailap announced that Uganda had contributed USD 376 million in equity to the East African Crude Oil Pipeline (EACOP) project and completed 100% acquisition of the right-of-way for the pipeline. Civil works for the terminal and jetty in Tanga have also been completed, with over 700 kilometers of pipeline received.

Uganda has also partnered with Alpha MBM Consortium to develop a 60,000 barrels-per-day refinery in Hoima, with ongoing negotiations to finalize commercial and legal agreements. Ocailap urged partner states to fully implement the 14th Summit directives and cluster recommendations.

Kenya’s Cabinet Secretary, Elizabeth Shungula, emphasized her country’s commitment to private sector partnerships, noting that Kenya is managing over 45 projects across various sectors. She praised the NCIP meeting as an opportunity to mobilize private sector financing for infrastructure development, stressing Kenya’s vision of financial inclusion and economic growth.

Rwanda’s High Commissioner to Uganda, Joseph Rutabana, underlined the importance of NCIPs in promoting regional economic growth and integration. He highlighted the value of infrastructure development for economic expansion and expressed Rwanda’s commitment to collaboration. Rwanda will host the 15th NCIP Summit, with dates to be confirmed after cluster meetings.

South Sudan’s Samuel Yanga Mikaya acknowledged the significance of the Standard Gauge Railway for enhancing regional transport and competitiveness. He pledged to finalize legal procedures to operationalize protocols under the Finance and Private Sector Participation Cluster.

The meeting addressed high financing costs as a barrier to project completion, with partner states committing to engage private sector bodies to mobilize funding. Key decisions included approving the updated implementation matrix and scheduling the Refined Petroleum Products Pipeline Cluster meeting in Nairobi.

Ambassador Richard Kabonero, Uganda’s National Coordinator for NCIPs, emphasized the essential role of the private sector in regional growth, citing Uganda’s involvement in the East African Crude Oil Pipeline project as an example of successful private sector engagement.

The NCIP is a regional initiative aimed at improving transportation, energy, and ICT infrastructure to foster trade efficiency and support sustainable development in East Africa.

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