EIC at the EU Transport Connectivity Task Force
Working Group Africa Chairman Christian Combes represented EIC at the EU Transport Connectivity Task Force on 25 July 2019.
Task force for improving transport connectivity in Africa The meeting took place during the third session of the EU Transport Connectivity Task force on 25 July 2019 in Brussels, headed by European Transport Commissioner Violeta Bulc. Next to Aviation and Road Safety, the Transport Connectivity task force is one of three cluster working groups dedicated to developing recommendations under the Africa Europe Alliance, the next phase of the Juncker Plan.
The EIC Secretariat was invited to consult on the new set-up of the infrastructure connectivity programme under the Africa Europe Alliance and the second phase of the Programme for Infrastructure Development in Africa, “PIDA II”. The task force was launched by DG DEVCO with the purpose to identify sector inefficiencies in African infrastructure administration, outline the caveats of PIDA I and define conditions on how to improve European infrastructure financing.
Reinforcing the role of the construction industry under PIDA II During the meeting, Mr. Combes highlighted the importance of the European construction industry’s contribution to the overall African development. During his intervention, he emphasised that European international contractors not only build the reliable and resilient physical foundation for sustained social and economic growth, but they also progressively engage in local education, business creation and stakeholder capacity development. At the current stage, recommendations do not sufficiently tap into the potential of European international contractors to implement the proposed measures.
According to Mr. Combes,
“the cultural proximity of both continents has enabled strong ties in business and people to people cooperation. This cooperation has been forged by shared values, which now include considerations for sustainability. Together, African and European countries as well as the private sector can ensure that future infrastructure needs are covered and that challenges posed by climate change are overcome.”
He further emphasised that strong mutual institutional cooperation is necessary in order to properly implement measures targeted at ensuring a level playing field.
EIC recommends improving financing terms and decision making In a first consultation, EIC submitted various recommendations covering necessary reforms in infrastructure planning, financing and implementation. During the previous meetings in Leipzig (22 May 2019) and Brussels (05 April 2019), the EIC delegation outlined the risks of construction business in Africa, including a lack of capacity in local administrations, improper conceptualisation of projects and opaque procurement decision making. The publication of the final policy paper is due for late September 2019.
Find the European Commission's article on the meeting here.
EIC proposes the following recommendations:
EIC recommends to make infrastructure lending and investment more attractive and secure by introducing flexible grace and maturity periods, interest rates, various types of guarantees and non-concessional financing.
EIC suggests to make sustainable procurement procedures mandatory as well as increase sustainability work requirements in order to improve the visibility of EU financing as well as ensuring that financial means are properly used.
EIC emphasises the necessity for a close cooperation between European Credit Agencies and Development financial Institutions to co-finance infrastructure projects that are planned in high risk environments.