Uganda has officially signed a contract with Turkish construction firm Yapi Merkezi to construct a 272-kilometer railway section, a strategic move aimed at boosting regional trade, as confirmed by Ugandan officials on Monday. Perez Wamburu, the coordinator for Uganda’s Standard Gauge Railway project, emphasized that this agreement marks the beginning of a much larger initiative that envisions a total of 1,700 kilometers of electric rail line across the country.
During the signing ceremony, Bageya Waiswa, permanent secretary of Uganda’s Ministry of Works, highlighted the significance of the project in enhancing trade efficiency and reducing transportation costs. He stated that Uganda plans to finance the initiative through a combination of its own resources and credit from export credit organizations, projecting that the construction will take approximately 48 months to complete once it commences.
The new railway will create a vital connection between Kampala, the capital city, and Malaba at the border with Kenya. This link is critical as it integrates landlocked Uganda into Kenya’s rail network, facilitating smoother access to the Indian Ocean seaport of Mombasa.
Previously, Uganda had an agreement with China Harbour and Engineering Company Ltd (CHEC) in 2015, which stipulated that the firm would secure funding from the Chinese government for the railway project. However, after several years of unproductive discussions and negotiations, Uganda made the decision to terminate this agreement last year. The government then initiated talks with Yapi Merkezi, which is currently undertaking a similar railway project in neighboring Tanzania.
This partnership is anticipated to significantly improve Uganda’s transportation infrastructure and foster economic growth within the region, enhancing trade dynamics and connectivity for both Uganda and its East African neighbors.
