NCTTCA E-NEWSLETTER
Issue No 4, June 2009

THE SCOPING STUDY FOR THE NORTHERN CORRIDOR SPATIAL DEVELOPMENT INITIATIVE PROGRAMME LAUNCHED

The NCTTCA has with effect from 4th May 2009 launched the scoping study on the Northern Corridor Spatial Development Programme, following the signing of a contract for consultancy services between NCTTCA and INGEROP Africa Pty on 24th April 2009. The study is expected to be completed by the end of August 2009.

The objectives of the scoping study are as follows:

  • To verify and enrich the Business Case for the Northern Corridor Spatial Development Initiative, taking into account the economic development potential of the project area and the key economic development drivers
  • To analyze the linkages between projects that underpin the Business Case and identify new economic development and investment opportunities
  • To prepare project profiles of the key anchor investment projects (including infrastructure) that underpin the Business Case
  • To identify impediments to investment, for both the anchor investment projects and at a country-level, and those interventions necessary to remove them; and
  • To prepare a detailed programme document that could be used to raise funds and other institutional support for the full implementation of the NCSDP.

During its 15th Meeting held atBujumbura in 2003, the Council of Ministers decided that the transport corridor be transformed into an economic development corridor and mandated the Secretariat to pursue the initiative using the spatial development initiative methodology already in application in the SADC region.

The new Northern Corridor Agreement signed in Nairobi, Kenya on 7th October, 2007 contains provisions enabling the countries to collaborate in the transformation of the Northern Corridor into an economic development corridor. Furthermore, NCTTCA has accorded the development corridor initiative high priority in its Five Year Strategic Plan (2007-2011), by making the transformation of the Northern Corridor into and EDC Corridor as one of the strategic objectives.

The Northern Corridor Spatial Development Programme (NCSDP) initiative coincides with an initiative of the NEPAD Secretariat to establish the NEPAD Spatial Development Programme (SDP) through which it is intended to provide support to development corridor initiatives across the continent. The Northern Corridor has been included in a portfolio of twelve possible Development Corridors prioritized for support through a desktop study carried out by the NEPAD Secretariat in 2006.

In this regard, NCTTCA approached the NEPAD Secretariat for support. During a meeting held between the NCTTCA and the NEPAD Secretariat in August 2007, the former solicited a range of support to bolster attempts to transform the Northern Corridor into a Development Corridor. Since the Corridor had in any case been identified and prioritized as part of the initial portfolio of corridors to be supported through the NEPAD SDP, the NEPAD Secretariat agreed to provide support to the NCTTCA, through the Regional SDI Unit, to facilitate high level stakeholders’ workshop and subsequently the Scoping Study.

NCTTCA had as a start, gone ahead in 2005 to commission a study on Strategies and Action Plan for the transformation of the corridor into an Economic Development Corridor. The study which was carried out by Louis Berger / Bearing Point of USA was funded by USAID under the East and Central Africa Global Competitiveness Hub. The findings and recommendations of this study, as well as the NEPAD initiative formed the basis of a Discussion Paper that was prepared jointly by the NCTTCA and the Regional SDI Unit based in South Africa, which was presented at a High Level Workshop held in Kampala, Uganda in February 2008.

The High Level Workshop brought together all the key stakeholders of the Northern Corridor Spatial Development Programme Initiative. Participants in the workshop were drawn from Burundi, Democratic Republic of Congo, Kenya, Rwanda, Sudan and Uganda. The workshop was also attended, among others, by representatives of the following regional and international organizations: COMESA, EAC, UNECA, AfDB, PTA Bank, European Union, USAID, Nile Basin Initiative, UNDP and the East African Power Pool.

The primary purpose of the workshop was to achieve consensus amongst stakeholders on the idea that there is a significant regional economic development opportunity that could be realized if the existing Northern Transport Corridor were to be transformed into the NCSDP. Specifically, the objectives were:

1. To make stakeholders understand the concept of Spatial Development Programme (SDP)
2. To Understand the elements of SDP methodology
3. To provide the business case for Northern corridor SDP
4. To develop and adopt an implementation plan of action for NCSDP

At the workshop it was agreed that the NC has both the inherent economic potential and a large degree of political and institutional support which are essential elements for the success for a development corridor. The SDI or development corridor methodology which has been used successfully in the SADC region can be applied to achieve the objectives of the NCTTCA. Among other recommendations, the workshop called for:

(i) A scoping study, with complete appraisal of opportunities and identification of viable projects along the corridor, to be undertaken.

(ii) Development of an implementation plan showing activities to be undertaken together with their actual cost estimates

The scoping study is to fulfill the above two recommendations.