Ministers from countries involved in the Eastern Africa Submarine Cable System (Eassy) and the associated terrestrial network connecting landlocked countries are set to approve a policy framework for the implementation of the project this afternoon.
This is in the face of strong opposition from telecoms companies involved in the project, which emerged yesterday at the start of a two-day meeting in Johannesburg.
The meeting was convened by the New Partnership for Africa`s Development (Nepad) e-Africa Commission and hosted by the Department of Communications.
Opposition
Telecoms companies involved in the project have expressed strong disapproval of the proposals for the acceleration plan. Lyndall Shope-Mafole, director-general of the Department of Communications, confirmed that some of the telecoms companies had boycotted the ministerial meeting.
Paul Bagiire, MTN Uganda`s head of strategic planning and finance, said the Nepad e-Africa Commission`s assertion of ownership of Eassy is not valid, as it was not a signatory to the stakeholders` memorandum of understanding.
He also argued that the Nepad proposals put to the ministers did not reflect the views of the telecoms companies involved in the project, and recommended that a consultation process takes into consideration the telecoms companies` views, expertise and concerns.
SA communications minister Ivy Matsepe-Casaburri, in her welcoming address yesterday, said: "It is imperative that ownership of this project reflects the collaboration between our African countries. Our heads of state demand this of us and our people expect it."
Burdened
Leading up to today`s signing, the 14 African ministers reviewed proposals on funding of the cable and the associated ownership rights, implementation schedules, as well as governance of the cable network once it is up and running.
These proposals include the development of an agency, or special purpose vehicle (SPV), which will raise funding for the cable and provide its management.
The structure and financing of the SPV, which would own Eassy, is another issue of contention. According to Shope-Mafole, the proposal to the ministers suggests the SPV will raise the finance, ensuring countries involved in the Eassy project do not individually incur debt.
She noted African countries are already burdened by debt and the SPV would ensure they do not incur additional liabilities, while, at the same time, allowing them to acquire equity in the asset. This would be in line with the ethos of African ownership of the asset, she said.
But Peter Silarszky, economist on global information and communication for the World Bank, argued that the proposed framework, where all investors have an equal shareholding and say, does not provide incentives for stakeholders to invest.
He expressed the bank`s willingness to engage the Eassy secretariat regarding the structure of the SPV, as well as its possible investment in it. $170 million has been set aside to invest in the project, he said.
Shope-Mafole stressed the proposed acceleration plan would ensure Eassy is commercially available by the first quarter of 2008, whether telcos involved in the project come on board or not.
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