UTN News

afdb COMMITS US $ 3.5M INTO IGAD

By UTN Reporter

The African Development Bank Group has injected US $ 3.50m into the Inter-Governmental Agency on Development (IGAD) for Infrastructure master plan in the eight member states.

The agreement was signed in Somalia Capital Mogadishu in the presence of Uganda's President Yoweri Museveni, Ethiopia's Prime Minister Hailemariam Desalegn, Somalia's President Hassan Sheikh Mohamud, Kenya's President Uhuru Kenyatta, Djibouti's Foreign Minister Mahamoud Ali Youssouf

The infrastructural project in the eight IGAD member states seeks to establish regional infrastructure development priorities, to enhance regional physical and economic integration, that will promote trade, movement of goods and persons and poverty reduction among the countries.

It is expected to be completed in 38 months with all the member states including Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan and Uganda. The initiative will inter-connect the regional infrastructure transport network, energy, ICT and trans-boundary water projects for investment.

It will also widen the broader regional socio-economic development. These would include physical and economic integration, job creation, enhanced opportunities for women and increased business opportunities.

The IRIMP was agreed upon in the initial stages if IGAD integration road map, as a pre-requisite for a Free Trade Area (FTA). The initiative was approved in Nairobi in 2010, to include all the nationals in the Horn of Africa Initiative (HOAI).

It came in handy after IGAD had not developed a regional infrastructure Master Plan that would prioritize consensual infrastructure development programme.

The Bank’s intervention now responds to a defined priority need of the governments which will serve to consolidate and enhance regional integration.

The overall project cost is estimated at US $3.69 million to be financed by the US $3.50 million ADF grant from the Bank’s Regional Operations envelop and Regional Public Goods (RPG) window.

IGAD secretariat will raise the US $0.19 million in counterpart funding.

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