PRESENTATION OF THE REPORT OF THE COUNCIL OF MINISTERS FOR THE PERIOD 30 MARCH TO 29 NOVEMBER 2006 TO THE 8TH SUMMIT OF HEADS OF STATE BY HON. JOHN KOECH, CHAIRPERSON OF THE COUNCIL OF MINISTERS OF THE EAST AFRICAN COMMUNITY

12/01/2006
GRANTS WECHE MOKADHO AGAJA KUYO BARUPE WECHE DONGRUOK MBAKA NONRO JEXJALUO NGECHE LUO GI GWENG' THUM TEDO LUO KITGI GI TIMBEGI SIGENDNI LUO THUOND WECHE ;	PRESENTATION OF THE REPORT OF THE COUNCIL OF MINISTERS FOR THE PERIOD 30 MARCH TO 29 NOVEMBER 2006 TO THE 8^TH SUMMIT OF HEADS OF STATE BY HON. JOHN KOECH, CHAIRPERSON OF THE COUNCIL OF MINISTERS OF THE EAST AFRICAN COMMUNITY Leo Odera Omolo in Arusha .30^th November 2006 Full text of speeches at the Arusha Summit Your Excellency, Mwai Kibaki, President of the Republic of Kenya and Chairman of the Summit of Heads of State of the East African Community Your Excellency, Yoweri Kaguta Museveni, President of the Republic of Uganda Your Excellency, Jakaya Mrisho Kikwete, President of the United Republic of Tanzania Your Excellency, Pierre Nkurunziza, President of the Republic of Burundi Your Excellency, Paul Kagame, President of the Republic of Rwanda Your Excellency, Abeid Amani Karume - President of Zanzibar Honourable Ministers, Members of the Council of Ministers of the East African Community Your Lordships the Chief Justices Honourable Speakers of National Assembly Your Lordships Judge President of the East African Court of Justice and Judges of the Court The Secretary General of the East African Community, Amb. Juma Mwapachu Distinguished Guests Ladies and Gentlemen INTRODUCTION Allow me, Your Excellencies, on this auspicious occasion of the 8^thSummit to present a brief outline of the Report of the Council of Ministers for the period 30th March to 29^th November 2006. I will later table the full report at the end of my statement. My statement only highlights the salient activities and achievements of the EAC under the following broad themes:- · Developments in the Integration process, covering all sectors · Lake Victoria Basin Commission · Consultative Process on the East African Federation · Activities of the Organs and Institutions of the Community · Organizational Structure and Capacity Building for the EAC · Negotiations on Burundi and Rwanda 's Admission; · EAC Publicity and Marketing Strategy/Re-branding the EAC; and · Finalization of the 3^rd EAC Development Strategy DEVELOPMENTS IN THE INTEGRATION PROCESS Your Excellencies, During the period under review, the Council of Ministers focused activities on deepening regional integration. In this regard, emphasis was placed on economic integration and concretization of regional projects and programmes in the various sectors. Finance, Trade and Investments In the areas of Finance, Trade and investments, major achievements were realized with the enactment of the EAC Competition Act 2006, and the EAC Standards, Quality Assurance Metrology and Testing Act 2006. The Summit has already assented to these legislations. Work continued in the development of tripartite agreements on avoidance of Double Taxation and the Prevention of Fiscal Evasion; and on the Study on "Monetary Integration in the East African Community". Harmonization of Trade Arrangement with COMESA and SADC In response to the WTO requirements and EU EPAs, initiatives were taken to harmonise trade arrangements between EAC, COMESA and SADC. EAC participated in the series of consultative meetings of the Chief Executives of the three sister organizations. The meeting led to identification of programmes to be pursued jointly under Customs, Trade and Infrastructure. In addition, the Partner States and the EAC Secretariat participated in the WTO Trade policy Meeting in Geneva where the EU pronounced that EAC was the most successful illustration of regional integration in Africa. Your Excellencies, In the Infrastructure sub-sector, steady progress was maintained on the East African Road Network Project, in particular the Mombasa - Katuna Road (Northern Corridor) and the Dar es Salaam - Mutukula Road (Central Corridor) were progressed to implementation stages. Works on these roads were contracted out and are now targeted for completion in the next two years. Meanwhile, the tender notices for construction of the Arusha- Namanga- Athi River Road project will close on 31^st January 2007, and construction planned to commence in May 2007. Railways On the railways sub sector, the East African Railways Master Plan study for which the Partner States have set aside US$ 350,000 is now set to commence in January 2007. Similarly the projects of railways concession were well sustained. The handover of Kenya Railways Corporation and Uganda Railways Corporation to Rift Valley Railways Company took place as scheduled on 1^st November 2006. The concession agreement between RITES of India and the Government of Tanzania was initialed in September 2006 and is expected to be signed in March 2007. Meanwhile, the Governments of Tanzania and Zambia are studying the recommendations of the Chinese Study Team report to chart the way forward for the concessioning of TAZARA. Civil aviation In the civil aviation sub-sector the Civil Aviation (Safety) Regulations have been promulgated by the Partner states. The Council has recommended to the Summit to approve the establishment of the East African Civil Aviation Safety and Security Oversight Agency. At the same time a US funded study on the establishment of a Unified Upper Flight Information Region or Common Space has commenced. Energy The serious impact of drought on the regional economies galvanized attention, Your Excellencies, on urgent measures needed to redress the energy deficit in the region. The plans for interconnection between Kenya and Tanzania are being intensified. The 3^rd East African Petroleum Conference will be held in Arusha in March 2007 and the Regional Strategy on Scaling Access to Modern Energy Services has been approved. Your Excellencies, In the area of e-governance, I am pleased to report that the Regional framework for e-government has been approved by the Partner States. Tourism and wildlife Turning to Tourism and Wildlife, there was a major breakthrough in the tourist sector with the launching of joint marketing of East Africa as a single tourist destination. EAC participated in the World Travel Market (WTM) in London in November. Preparations were made for continuation of joint participation in the International Tourism Fair in Berlin in March 2007. It is also planned that the East African tourist boards would extend such joint promotion and marketing to the Asian, Far Eastern and American markets during 2007. Social sectors The main identified projects and programmes under the social sectors have been subject of protracted negotiations. I am pleased to report that vigorous activities maintained behind these projects have led to the point where Protocols will be concluded by April 2007 on the establishment of the East African Science and Technology Council; the establishment of the East African Kiswahili Council; and the establishment of the East African Health Research Council. The EAC Anthem will be finalized by the next Summit in April 2007. Your Excellencies, The operations of the Lake Victoria Basin Commission were launched and the Commission is due to move to its offices in Kisumu by the first week of December 2006. The stage is now set to roll out the development programmes of the Lake, including safety of navigation, environmental protection and conservation and overall sustainable development of the Lake and its basin. FAST TRACKING POLITICAL FEDERATION On the programme of fast tracking the political federation, I wish to report that the National Consultative Process was launched simultaneously in the capitals of the Partner States on 13^th October 2006 presided over by the Heads of State. The National Consultative Process is on course. Your Excellencies, I wish now to report briefly on the activities of the Organs and Institutions of the Community. All the organs and institutions of the Community - East African Legislative Assembly, East African Court of Justice, Inter-University Council for East Africa , Lake Victoria Fisheries Organization and the East African Development Bank - have made good progress in the period under review. The East African Legislative Assembly maintained a steady legislative programme as well as a robust oversight role. The Assembly was responsible for a broad-based outreach programme in the Partner States. The term of the first Assembly ended yesterday after the expiry of five years. The second EALA will commence soon. The East African Court of Justice heard the first reference to it, filed in December 2005, and delivered its Judgment on 4 October 2006. The Court also heard another reference in the past two weeks on elections of EALA Members in Kenya . The ruling of the Court poses serious challenges to the East African Community. The Council of Ministers is well seized of these challenges and their grave implications. The Council has made appropriate proposals to the Summit for consideration and direction. Meanwhile, Your Excellencies, the draft Protocol to Operationalize the Extended Jurisdiction of the East African Court of Justice is being subjected to a broad consultative process in the Partner States. With respect to the Lake Victoria Fisheries Organization, it has continued to coordinate measures for sustainable utilization of the fisheries resources of Lake Victoria, in particular the reorganization of the fishing communities in the management and collaborative activities on the fishery of the Lake . The Inter-University Council for East Africa whose current membership stands at 46 affiliated universities drawn from both public and private universities in the region, pursued activities aimed at transforming the IUCEA into an effective regional advocate and catalyst for the strategic development and management of higher education in East Africa. The institution is managing several strategic research programmes Your Excellencies, The East African Development Bank, on the other hand, pursued programmes designed to enhance the Bank's capacity to play a more substantive and sustainable role as a regional development finance institution. The Bank's financial performance continued to improve with net profits increasing by over 100% in each of the last 4 years through issues of bonds, administration of lines of credit and cross-currency swaps. The Bank is now engaged in discussions with the African Development Bank for an eighth line of credit of USD 120 million and is finalizing negotiations with the China Development Bank for a USD 30 million line of credit. Pursuant to the 7^th Summit directive, the EADB has submitted to the EAC concrete proposals on how it can transform itself into a lead agency for promoting regional integration projects. Your Excellencies, The Council has been seized over a long period of the need to provide effective levels of human, physical and financial resources in tandem with the growing mandate of the EAC. I am pleased to report that the approved new EAC Organization Structure is being implemented, with 33 priority staff positions to be recruited within the FY 2006/2007 and the new improved terms of service for staff will be implemented with effect from January 2007. Apart from this, the operationalization of the EAC Partnership Fund and the roll out of the electronic Information Exchange Systems (EIES) linking EAC Headquarters and the Partner States Ministries responsible for EAC Affairs should help to improve communication between the Secretariat and the Partner States. PUBLICITY AND MARKETING OF EAC/RE-BRANDING EAC In the period under review, major developments of regional interest received wide publicity. EAC continued its sensitization seminars in the Partner States. EAC also laid out plans for closer relations and involvement of local authorities and grassroots organizations in promoting the regional integration process. Contacts and relations between EAC and the development partners were intensified. A meeting between EAC and the co-operating partners under the EAC Partnership Fund was held in Arusha in October. It was a cordial and fruitful meeting indicating excellent relations existing between EAC and the development partners. The meeting agreed on a broad range of EAC projects and programmes to be supported under the EAC Partnership Fund, including the EAC Re-branding Project which is intended to revamp the EAC Marketing and Publicity Strategy. Other activities included a high-level EAC Ministerial delegation to the Federal Republic of Germany and the Headquarters of the European Union in Brussels in September and EAC collaboration with the Commonwealth Business Council in the preparations for the first East Africa Investment Forum that will be held at the Summit level at a date yet to be confirmed in 2007 under the theme, *Trade and Investment Opportunities: Growth through Global Partnerships. High level visits to EAC by the President of the World Bank and the President of the African Development Bank in July and August respectively yielded broad support to EAC, in particular to EAC infrastructure projects. APPLICATIONS OF THE REPUBLIC OF BURUNDI AND THE REPUBLIC OF RWANDA TO JOIN THE EAST AFRICAN COMMUNITY* Your Excellencies, With respect to the High Level Negotiations on the applications of the Republic of Burundi and the Republic of Rwanda to join the Community, these negotiations have been finalized and the Summit will pronounce itself on this issue. LAUNCHING OF THE EAC DEVELOPMENT STRATEGY Your Excellencies, Finally, the Council notes with appreciation the guidance and inputs from the Partner States in the formulation of the 3^rd EAC Development Strategy (2006-2010) which Your Excellencies will be launching today. The Strategy outlines broad strategic goals of the East African Community as well as the specific targets and priority projects and programmes to be implemented by 2010. With these remarks, Your Excellencies, it is now my honour and privilege to present to you the Report of the Council of Ministers for the period 30th March to 29^th November 2006. Ends leoderaomolo@yahoo.com The writer is LUOCOME REPORTER based in Kisumu. We urge all LUOCOME members with pressing issues pertaining to media and press releases to kindly contact him from any where in world. He will assist you to get true picture of your Village Developement. LUOCOME-MEDIA Joluo.com Ka in gi mari moro ma di wandik ka to orni Akelo nyar Kager, jaluo@jaluo.com Daher winjo dwondi in bende, iwinjo?	IDWARO TICH? Inyalo oro twak kod weche manyien ne: Mig. Ajos wuod Atiga WuonAbila@jaluo.com GALAMORO : Riwruok mar JOLUO e Piny Ngima, orwaku uduto mondo ubed e kanyakla mar burani. Ornwa nyingi gi nondi kaka obedo. Riwruok e teko joka Nyanam. WENDO MIWA PARO OD PAKRUOK

PRESENTATION OF THE REPORT OF THE COUNCIL OF MINISTERS FOR THE PERIOD 30 MARCH TO 29 NOVEMBER 2006 TO THE 8^TH SUMMIT OF HEADS OF STATE BY HON. JOHN KOECH, CHAIRPERSON OF THE COUNCIL OF MINISTERS OF THE EAST AFRICAN COMMUNITY

Your Excellency, Yoweri Kaguta Museveni, President of the Republic of Uganda

Your Excellency, Jakaya Mrisho Kikwete, President of the United Republic of Tanzania

Your Excellency, Pierre Nkurunziza, President of the Republic of Burundi

Your Excellency, Paul Kagame, President of the Republic of Rwanda

Your Excellency, Abeid Amani Karume - President of Zanzibar

Honourable Ministers, Members of the Council of Ministers of the East African Community

The Secretary General of the East African Community, Amb. Juma Mwapachu

Allow me, Your Excellencies, on this auspicious occasion of the 8^thSummit to present a brief outline of the Report of the Council of Ministers for the period 30th March to 29^th November 2006. I will later table the full report at the end of my statement. My statement only highlights the salient activities and achievements of the EAC under the following broad themes:-

DEVELOPMENTS IN THE INTEGRATION PROCESS

During the period under review, the Council of Ministers focused activities on deepening regional integration. In this regard, emphasis was placed on economic integration and concretization of regional projects and programmes in the various sectors.

Finance, Trade and Investments

In the areas of Finance, Trade and investments, major achievements were realized with the enactment of the EAC Competition Act 2006, and the EAC Standards, Quality Assurance Metrology and Testing Act 2006. The Summit has already assented to these legislations. Work continued in the development of tripartite agreements on avoidance of Double Taxation and the Prevention of Fiscal Evasion; and on the Study on "Monetary Integration in the East African Community".

In response to the WTO requirements and EU EPAs, initiatives were taken to harmonise trade arrangements between EAC, COMESA and SADC. EAC participated in the series of consultative meetings of the Chief Executives of the three sister organizations. The meeting led to identification of programmes to be pursued jointly under Customs, Trade and Infrastructure. In addition, the Partner States and the EAC Secretariat participated in the WTO Trade policy Meeting in Geneva where the EU pronounced that EAC was the most successful illustration of regional integration in Africa.

In the Infrastructure sub-sector, steady progress was maintained on the East African Road Network Project, in particular the Mombasa - Katuna Road (Northern Corridor) and the Dar es Salaam - Mutukula Road (Central Corridor) were progressed to implementation stages. Works on these roads were contracted out and are now targeted for completion in the next two years. Meanwhile, the tender notices for construction of the Arusha- Namanga- Athi River Road project will close on 31^st January 2007, and construction planned to commence in May 2007.

On the railways sub sector, the East African Railways Master Plan study for which the Partner States have set aside US$ 350,000 is now set to commence in January 2007. Similarly the projects of railways concession were well sustained. The handover of Kenya Railways Corporation and Uganda Railways Corporation to Rift Valley Railways Company took place as scheduled on 1^st November 2006. The concession agreement between RITES of India and the Government of Tanzania was initialed in September 2006 and is expected to be signed in March 2007. Meanwhile, the Governments of Tanzania and Zambia are studying the recommendations of the Chinese Study Team report to chart the way forward for the concessioning of TAZARA.

In the civil aviation sub-sector the Civil Aviation (Safety) Regulations have been promulgated by the Partner states. The Council has recommended to the Summit to approve the establishment of the East African Civil Aviation Safety and Security Oversight Agency. At the same time a US funded study on the establishment of a Unified Upper Flight Information Region or Common Space has commenced.

The serious impact of drought on the regional economies galvanized attention, Your Excellencies, on urgent measures needed to redress the energy deficit in the region. The plans for interconnection between Kenya and Tanzania are being intensified. The 3^rd East African Petroleum Conference will be held in Arusha in March 2007 and the Regional Strategy on Scaling Access to Modern Energy Services has been approved.

Your Excellencies,

In the area of e-governance, I am pleased to report that the Regional framework for e-government has been approved by the Partner States.

Tourism and wildlife

Turning to Tourism and Wildlife, there was a major breakthrough in the tourist sector with the launching of joint marketing of East Africa as a single tourist destination. EAC participated in the World Travel Market (WTM) in London in November. Preparations were made for continuation of joint participation in the International Tourism Fair in Berlin in March 2007. It is also planned that the East African tourist boards would extend such joint promotion and marketing to the Asian, Far Eastern and American markets during 2007.

The main identified projects and programmes under the social sectors have been subject of protracted negotiations. I am pleased to report that vigorous activities maintained behind these projects have led to the point where Protocols will be concluded by April 2007 on the establishment of the East African Science and Technology Council; the establishment of the East African Kiswahili Council; and the establishment of the East African Health Research Council. The EAC Anthem will be finalized by the next Summit in April 2007.

The operations of the Lake Victoria Basin Commission were launched and the Commission is due to move to its offices in Kisumu by the first week of December 2006. The stage is now set to roll out the development programmes of the Lake, including safety of navigation, environmental protection and conservation and overall sustainable development of the Lake and its basin.

FAST TRACKING POLITICAL FEDERATION

On the programme of fast tracking the political federation, I wish to report that the National Consultative Process was launched simultaneously in the capitals of the Partner States on 13^th October 2006 presided over by the Heads of State. The National Consultative Process is on course.

Your Excellencies,

All the organs and institutions of the Community - East African Legislative Assembly, East African Court of Justice, Inter-University Council for East Africa , Lake Victoria Fisheries Organization and the East African Development Bank - have made good progress in the period under review.

The East African Legislative Assembly maintained a steady legislative programme as well as a robust oversight role. The Assembly was responsible for a broad-based outreach programme in the Partner States. The term of the first Assembly ended yesterday after the expiry of five years. The second EALA will commence soon.

The East African Court of Justice heard the first reference to it, filed in December 2005, and delivered its Judgment on 4 October 2006. The Court also heard another reference in the past two weeks on elections of EALA Members in Kenya . The ruling of the Court poses serious challenges to the East African Community. The Council of Ministers is well seized of these challenges and their grave implications. The Council has made appropriate proposals to the Summit for consideration and direction.

Meanwhile, Your Excellencies, the draft Protocol to Operationalize the Extended Jurisdiction of the East African Court of Justice is being subjected to a broad consultative process in the Partner States.

With respect to the Lake Victoria Fisheries Organization, it has continued to coordinate measures for sustainable utilization of the fisheries resources of Lake Victoria, in particular the reorganization of the fishing communities in the management and collaborative activities on the fishery of the Lake .

The Inter-University Council for East Africa whose current membership stands at 46 affiliated universities drawn from both public and private universities in the region, pursued activities aimed at transforming the IUCEA into an effective regional advocate and catalyst for the strategic development and management of higher education in East Africa. The institution is managing several strategic research programmes

Your Excellencies,

The East African Development Bank, on the other hand, pursued programmes designed to enhance the Bank's capacity to play a more substantive and sustainable role as a regional development finance institution. The Bank's financial performance continued to improve with net profits increasing by over 100% in each of the last 4 years through issues of bonds, administration of lines of credit and cross-currency swaps. The Bank is now engaged in discussions with the African Development Bank for an eighth line of credit of USD 120 million and is finalizing negotiations with the China Development Bank for a USD 30 million line of credit. Pursuant to the 7^th Summit directive, the EADB has submitted to the EAC concrete proposals on how it can transform itself into a lead agency for promoting regional integration projects.

The Council has been seized over a long period of the need to provide effective levels of human, physical and financial resources in tandem with the growing mandate of the EAC. I am pleased to report that the approved new EAC Organization Structure is being implemented, with 33 priority staff positions to be recruited within the FY 2006/2007 and the new improved terms of service for staff will be implemented with effect from January 2007. Apart from this, the operationalization of the EAC Partnership Fund and the roll out of the electronic Information Exchange Systems (EIES) linking EAC Headquarters and the Partner States Ministries responsible for EAC Affairs should help to improve communication between the Secretariat and the Partner States.

In the period under review, major developments of regional interest received wide publicity. EAC continued its sensitization seminars in the Partner States. EAC also laid out plans for closer relations and involvement of local authorities and grassroots organizations in promoting the regional integration process.

Contacts and relations between EAC and the development partners were intensified. A meeting between EAC and the co-operating partners under the EAC Partnership Fund was held in Arusha in October. It was a cordial and fruitful meeting indicating excellent relations existing between EAC and the development partners. The meeting agreed on a broad range of EAC projects and programmes to be supported under the EAC Partnership Fund, including the EAC Re-branding Project which is intended to revamp the EAC Marketing and Publicity Strategy.

Other activities included a high-level EAC Ministerial delegation to the Federal Republic of Germany and the Headquarters of the European Union in Brussels in September and EAC collaboration with the Commonwealth Business Council in the preparations for the first East Africa Investment Forum that will be held at the Summit level at a date yet to be confirmed in 2007 under the theme, Trade and Investment Opportunities: Growth through Global Partnerships.

High level visits to EAC by the President of the World Bank and the President of the African Development Bank in July and August respectively yielded broad support to EAC, in particular to EAC infrastructure projects.

APPLICATIONS OF THE REPUBLIC OF BURUNDI AND THE REPUBLIC OF RWANDA TO JOIN THE EAST AFRICAN COMMUNITY

Your Excellencies,

With respect to the High Level Negotiations on the applications of the Republic of Burundi and the Republic of Rwanda to join the Community, these negotiations have been finalized and the Summit will pronounce itself on this issue.

LAUNCHING OF THE EAC DEVELOPMENT STRATEGY

Your Excellencies,

Finally, the Council notes with appreciation the guidance and inputs from the Partner States in the formulation of the 3^rd EAC Development Strategy (2006-2010) which Your Excellencies will be launching today. The Strategy outlines broad strategic goals of the East African Community as well as the specific targets and priority projects and programmes to be implemented by 2010.

With these remarks, Your Excellencies, it is now my honour and privilege to present to you the Report of the Council of Ministers for the period 30th March to 29^th November 2006.