ECA urges Africa to seek alternatives to public financing of railway infrastructure

ADDIS ABABA, March 22 (Xinhua) -- The UN Economic Commission for Africa (ECA) on Friday urged African countries to look for additional alternatives to public sector financing of railway infrastructure projects.

"An alternative to public sector financing of such infrastructure, which departs from past traditions of direct state commitments, is therefore seen as the way forward," the ECA said on Friday.

ECA's call came ahead of its high-level meeting that aimed to kick-start solid arrangements for the innovative financing of railway vehicles that would ply the African Integrated High Speed Railway Network, a flagship infrastructure programs on AU agenda.

The Network, if implemented, will be vital in ensuring the timely movement of goods, services and people across national capitals and business hubs of the continent, acting as a further stimulator of production, trade and inclusive growth, the ECA said in a statement on Friday.

"It is also expected to relieve the congestion of current transport systems, such as roads, as well as future systems across the continent," the ECA said.

The upcoming meeting is expected to connect leading development and financing organizations in Africa, think tanks, and senior officials from African ministries of finance, economic planning and transport with heads of major railway authorities across the continent, according to the ECA.

The event is also expected to seek how to leverage the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Railway Rolling Stock, also known as the Luxembourg Protocol, to fund the acquisition of railway vehicles for AU's flagship development agenda.

According to the ECA, the Luxembourg protocol has the potential to facilitate the provision of capital from banks and other funders for rolling stock procurement through secured credit and leasing of railway vehicles to operators without the need for state guarantees.