Uganda inks Sh505bn deal with Turkish firm to build SGR
A rail worker on task to connect the Standard gauge Railway with the old rail rests at Longonot in Naivasha on May 27, 2021.
Uganda and Turkey's Yapi Merkezi signed a contract on Monday to build 272 kilometers of railway.
The agreement was signed by Uganda's works ministry permanent secretary, Bageya Waiswa, and Yapi Merkezi's vice chairman, Erdem Arioglu.
Uganda's Standard Gauge Railway project coordinator, Perez Wamburu, said the agreement was for the first section of a planned 1,700 km electric rail line, and the segment would cost 2.7 billion euros ($3 billion).
Its construction will start in November, Wamburu said.
The project will increase trade and reduce transport costs, Uganda's works ministry permanent secretary, Bageya Waiswa, said at the signing ceremony.
He said Uganda will use its own funds and credit from export credit organisations to finance the project, which will take 48 months to complete once started.
The rail section will run from the capital Kampala to Malaba at the border with Kenya, connecting landlocked Uganda to its neighbour's rail network and on to the Indian Ocean seaport of Mombasa.
Uganda had entered into an agreement in 2015 with the China Harbour and Engineering Company Ltd (CHEC) to implement the project on condition the firm helped secure funds for the railway from the Chinese government.
After years of fruitless talks, Uganda last year terminated the agreement and entered talks with Yapi Merkezi, which is carrying out a similar project in neighbouring Tanzania.
