| Work Detail |
M/s Yapi Merkezi has been hired to build the 332km railway.
Uganda has chosen Turkish firm Yapi Merkezi to build the Malaba-Kampala segment of the standard gauge railway, with work set to begin by December.
The decision comes after Uganda terminated its contract with a Chinese contractor early last year after eight years of delay.
Perez Wamburu, the project coordinator, said Kampala was finalising the procurement of Yapi Merkezi to pave the way for the start of the project.
“We have discussed the costs, and we are at the bottom line of agreeing that we shall have the contract after it has been approved by the Attorney-General,” Mr Wamburu said at a recent media briefing in Kampala.
Details of the funding are yet to be disclosed, but the terminated Chinese contractor had promised to invest about $2.2 billion into the railway project.
Yapi Merkezi has just completed a 541km SGR from Dodoma, the administrative capital, to Tabora in Tanzania. The $3.1 billion line is part of a 2,561-km network expected to boost domestic and regional trade.
The Turkish firm’s track record in Tanzania influenced Kampala’s decision.
“We have done due diligence on this company, and we have seen what they have done in Tanzania,” Mr Wamburu stated.
The Malaba-Kampala SGR project, which spans 332km, is a critical part of a regional initiative launched nine years ago by East African Community partner states, including Kenya, Uganda, Tanzania, Rwanda, and South Sudan.
The railway aims to lower transport costs, speed up transit, and boost economic growth through better connectivity within Uganda and its neighbouring countries.
Uganda has lagged behind, with only Kenya and Tanzania having made significant progress in constructing their respective sections to date.
At the same briefing, Minister of State for ICT and National Guidance, Mr Godfrey Kabyanga, stated the reasons for cancelling the contract with the Chinese contractor, attributing it to unfavorable conditions.
Uganda had initially sought financing for the Malaba-Kampala SGR line from China Exim Bank. However, the terms were deemed unfavourable, leading to the decision to partner with the Turkish firm.
“Their conditions were not favourable to us, but we’ve gone with the Turkish firm. They are favourable, and we are going to work with them,” Mr Kabyanga said.
He assured the public that the development of the railway was on track and that work would start as soon as the financing arrangements were sorted out. |
