Kenya’s President Mwai Kibaki has called on East Africa Community member states to adopt public-private partnership to finance infrastructural development projects in the region.
Speaking on Thursday during the official opening of the 2nd EAC Heads of State Summit Retreat on Infrastructure and Financing in Nairobi, President Kibaki noted that the EA region needs to seek innovative financing solutions in order fund infrastructural projects.
Noting that there has been a major global shift towards new approaches of provision, operation and financing of infrastructure, the president said in the past the region significantly relied on conventional sources of funding infrastructural projects while ignoring the private sector.
President Kibaki who is the current chairman of the East African Community noted as part of the solution, capital markets have to be reformed and the required legal frame work put in place for the public-private partnerships to take root.
“My government has been approached by credible and serious investors who intend to construct major highways and other infrastructure provided the policy and legal frameworks are in place. Let us seize these opportunities,” said the president.
Noting that infrastructure is an enabler that facilitates all other development objectives, President Kibaki said large proportion of resources will continually be invested in the sector.
The Head of State further noted that the ongoing retreat of EAC leaders will focus more on railways, ports and energy so as to give the projects and programmes in these sectors required strategic and political profiling.
President Kibaki said this will enhance mobilization of domestic resources as well as attract support from development partners and private sector.
On the transport sector, President Kibaki said efficiency in the sector will result in cost effectiveness and faster movement of goods and persons which will in turn increase economic activities.