Statement by Dr. Amani Abou Zeid, AUC Commissioner for Infrastructure and Energy at the opening ceremony of the 2019 PIDA Week

Speeches

Nov 25, 2019 - 10:00

Speech (EN)

PIDA Week 2019 ">PIDA Week 2019

Your Excellency Ambassador Khalid Emara, Assistant Foreign Minister of African Organization and Communities; and Personal Representative of the President of the Arab Republic of Egypt to AUDA-NEPAD,
Your Excellency Dr. Ibrahim Mayaki, Chief Executive Officer of AUDA-NEPAD ,
Your Excellency Dr. Mohamed Shaker El-Markab, Minister of Electricity and Renewable Energy of the Arab Republic of Egypt,
Distinguished participants,
Ladies and Gentlemen,
All protocol observed.

On behalf of the Chairperson of the African Union Commission, Mr. Mahamat Moussa Faki, and on my own behalf, I would like to express our sincere appreciation to the President and the Government of the Arab Republic of Egypt, the warm hospitality extended to us since our arrival in this historical and beautiful city of Cairo. I would also like to acknowledge the presence of Dr. El-Markab, representing the Government of the Arab Republic of Egypt. We highly appreciate your presence in this opening ceremony as a demonstration of your Government’s commitment to advocate and promote Africa’s infrastructure development.

I would also like to express our gratitude to the AUDA-NEPAD, African Development Bank (AfDB), and the United Nations Economic Commission for Africa (UNECA) for their efforts and collaborations with us in facilitating this important event. My gratitude also goes to the European Union and German Cooperation through GIZ for their continued technical and financial support. I would also like to thank all our participants and delegates from the AU Member States at this very important event – the 5^th PIDA Week.

The PIDA Week offers a valuable opportunity for public decision makers, project developers, private sector, civil society, and academia to exchange views and proffer solutions towards the implementation of regional infrastructure projects on the continent.
As we are all aware, the African Union Agenda 2063 highlights the need to enhance regional and continental efforts for accelerated and integrated infrastructure development in Africa, through high-level policy development and engagement, consensus building, promotion of regional integration, as well as mobilisation of financial and technical resources to support the development regional infrastructure projects.
The development and provision of efficient infrastructure services including both hard and soft infrastructure will provide a crucial platform for Africa to enhance economic productivity, facilitate trade, and accelerate industrialization and markets development at the national, regional, continental and global levels.

Excellencies,

Distinguished Delegates,

Ladies and Gentlemen,

The theme of the 5^th PIDA Week is “Positioning Africa to deliver on Agenda 2063 through multi-sectoral approaches to infrastructure development” for two important reasons. First, the scarcity of financial resources and the low levels of access to infrastructure as well as the increasing demand for efficient services means future infrastructure systems have to be smart, integrated, efficient as well as transformative. Second, the huge financing and volumes of infrastructure required calls for good collaboration at all levels of projects development including mobilization of resources, projects implementation, maintenance and operation for the attainment of the Agenda 2063 aspirations. Thus the 5^th PIDA Week will seek to highlight the importance of integrated corridor approach in accelerating infrastructure development and expansion on the continent.

Obviously, the physical and economic transformation of the continent cannot be achieved without a reliable and quality infrastructure network and services. As stated in the AU Agenda 2063, establishment of resilient infrastructure is a prerequisite for sustainable development of our economies and for the operationalization of the African Continental Free Trade Area (AfCFTA).

In this regard, the 5^th PIDA Week occurs few weeks after the 3^rd Ordinary Session of the STC on Communication and ICT, held in Sharm El Sheikh with the support from the Government of Arab Republic of Egypt. I am glad to report that the Committee considered and provided valuable inputs to the Draft Digital Transformation Strategy (DTS) for Africa crafted in an inclusive manner. The DTS aims to harness digital technologies and innovation to transform African societies and economies to promote Africa's integration, generate inclusive economic growth, stimulate job creation, break the digital divide, and eradicate poverty for the continent’s socio-economic development and ensure Africa’s ownership of modern tools of digital management.

Our gathering offers the opportunity to update all on steps taken towards the consideration of this important framework for Africa’s transformation by the Policy Organs.

The current conditions of the economies of some African countries marked by volatility on export markets show the importance of prioritizing the development of infrastructure and transport facilitation services on the continent to benefit from the African Continental Free Trade Area (AfCFTA). In addition, the infrastructure financing gap of $47to $87 billion per year (as reported by ICA) remains a major challenge for the 55 Member States of the African Union.

The 5^th PIDA Week also intends to build on the relative achievements and the momentum created in the previous four events to continue to engage stakeholders on the effective delivery of infrastructure on the continent. It aims at providing a platform for stakeholders to engage in accelerating and synergizing their efforts to: (1) accelerate projects preparation and implementation;(2) mobilize adequate financial and technical resources for projects; (3) increase private sector participation in PIDA implementation; and (4) mobilize Member States to integrate the PIDA projects into their national development plans.

Excellencies,

Distinguished Delegates,

Ladies and Gentlemen,

In April 2019, ministers in charge of Transport, Transcontinental and Interregional Infrastructure, Energy and Tourism, meeting in Cairo, Arab Republic of Egypt, in the Second Session of the Specialized Technical Committee on Transport, Transcontinental and Interregional Infrastructure, Energy and Tourism reiterated on a joint requested to the African Union Commission (AUC) and the African Union Development Agency (AUDA-NEPAD) jointly with the African Development Bank to strive to fast track the development of second Priority Action Plan of the Programme for Infrastructure Development in Africa (PIDA PAP 2) adopting the integrated corridor approach, which should be submitted to the AU policy organs for consideration and adoption by January 2021. Accordingly the STC mandated the Bureau of the STC to validation the studies of PIDA PAP2.

The Mid-Term review process of the First Phase of the Priority Action Plan identifies key strategies and recommendations on:

the Institutional Architecture governing the delivery of PIDA;
the implementation of the PIDA PAP projects;
mobilisation of financial and technical resources; and
formulation of the second phase of the Priority Action Plan.

Yesterday the Members of the Bureau of the STC on Transport, Transcontinental and Interregional Infrastructure, Energy and Tourism composed of the Arab Republic of Egypt, Democratic Republic of Congo, Somalia, Lesotho and Togo, met and validated the PIDA PAP 2 integrated corridor approach, the projects selection criteria, the strategy to unlock access to rural areas and the detailed scoping study of the Continental High Speed Railway Network (CHSRN).

With the validation of the PIDA PAP 2 studies by the Ministers the African Union Commission in collaboration with AUDA-NEPAD, the RECs and the Member States will engage the consultations for the selection of the list of priority projects which are expected to be implemented from 2021-2030.

Currently, the African Union Commission is leading the development of the second phase of the PIDA Priority Action Plan (PAP), which is expected to be implemented from 2020 -2030. The African Union Commission in collaboration with its continental and international partners have already initiated some key processes that will facility the selection of projects in the Second Phase of the Priority Action Plan.

Excellencies,

Distinguished Delegates,

Ladies and Gentlemen,

Please allow me to highlight some important strategies for our Regional and continental partners as well as our African Member States required to address the barriers to projects implementation.

At the political level, there is a need for African countries and Regional Economic Communities (RECs) to mainstream PIDA projects into their national and regional development plans. It is also important that African Member States take ownership in the development and implementation of national and continental initiatives. This is necessary to ensure that there are clear and harmonized ambitions, strategies and political commitments towards ensuring access to infrastructure services as well as provide the necessary policy and financial instruments for infrastructure development at the local, national and regional levels.

At the policy and institutional level, allocating public financing to implement infrastructure projects will be important in leveraging private sector and international financing. Using public finance to start or implement projects demonstrate government’s commitment and has the potential to improve investor confidence in infrastructure investments.

Positioning of national institutions, frameworks and projects to mobilize resources from international and innovative financing instruments will also be crucial. There is also a need to create an enabling environment private sector participation through the provision of fiscal and regulatory incentives as well as addressing political and investment risks will enhance the flow of investments from both the domestic and international private sector.

At the technical level, capacity building for bankable projects development at the institutional and project levels for both the public and private stakeholders including local banks will be important in leveraging and mobilizing finance from the private sector to implement infrastructure projects.

Excellencies,

Honourable Ministers,

Ladies and Gentlemen,

I would like to conclude by calling upon all African stakeholders to ensure strong coordination of efforts to catalyse infrastructure development on the continent. There is also a need to ensure that the development of infrastructure on the continent contributes to transformative and inclusive growth driven by poverty alleviation.

I would like to once again thank all our partners in organising this very important event and also Government and the people of the Arab Republic of Egypt for hosting us for this Event.

Thank you for your kind attention.

Infrastructure and Energy Department (IED)

Egypt

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PIDA Week 2019 ">PIDA Week 2019

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