East Africa is set to experience a radical shift in the transport sector after Uganda secured a lucrative deal with Turkish construction firm Yapi Merkezi to build a modern Standard Gauge Railway network in the country.
The project, estimated at Ksh281 billion, will see the construction of a 272-kilometer (169-mile) segment of the Standard Gauge Railway as part of a larger plan for the establishment of a 1,700-kilometer electric rail line.
Yapi Merkezi is the same firm that was contracted to construct the Tanzania SGR from Dar-es-Salaam to Morogoro (around 300 km) and the 422km Morogoro- Makutupora line, which are all operational today.
Permanent Secretary of Uganda’s Ministry of Works Bageya Waiswa welcomed the deal on Monday, October 14, saying it would go a long way in boosting trade and reducing transport costs in the land-locked country.
Notably, the deal will come with some relief for the Ugandan government, especially after China withdrew its financial support in the construction of the SGR. In 2015, China Harbour and Engineering Company Ltd (CHEC) agreed to execute the project but talks broke down after years of negotiations.
The bigger picture: Uganda, which has been lagging in terms of its transport network, is set to greatly benefit from the new deal in several ways. Not only will the nation have a modern, fast, reliable, and high-capacity railway network, but regional trade with neighbours including Kenya is set to be improved considerably.
Since the project will link Kampala, to Malaba, situated at the border with Kenya, the landlocked Uganda will have access to Kenya’s rail network and ultimately, to the Indian Ocean seaport of Mombasa. Over time, the rail is set to extend from Malaba to Pakwach, Kampala to Kasese, DRC border.
The three key aspects of the project including land acquisition, compensation of the affected communities, and resource mobilisation are continuing, and it is estimated that 50% of the required land to accommodate the railway between Malaba and Jinja has already been acquired.
The Malaba–Kampala section alone, measuring 273 kilometers, is set to cost around Ksh296 billion (USD2.3 billion), while the entire Uganda SGR Project covering 1,724 km was quoted at Ksh1.7 trillion (USD12.8 billion).
Uganda's latest development came just four months after signing seven Memoranda of Understanding to deepen bilateral relations with Kenya. In May, President William Ruto revealed a Joint Ministerial Meeting (JMC) prompted the signing of the seven instruments of cooperation.
From the engagements, trade ministers from both countries were urged to meet and resolve any outstanding issues affecting trade between Uganda and Kenya.
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