Uganda and a Turkish firm have signed a contract worth 2.7 billion euros to construct a standard gauge railway line (SGR) that will run from the capital to the Eastern region district of Tororo.
A statement from the government said the contract was signed Monday by the country’s works and transport minister Gen Katumba Wamala and the contractor, Yapi Merkezi, a Turkish firm in a joint venture with YM Global Ltd.
“The construction will cover 272km between Tororo and Kampala and works expected to be launched soon will take 48 months,” the statement said.
The minister emphasized the need for the contractor to prioritize local content.
“I implore you to be transparent in all matters of local content to avoid disputes which can hamper project delivery. This will enhance acceptability of the project,” Gen Wamala said.
The project will be funded using domestic resources and contributions from development partners.
According to SGR, the signing of the contract was a result of two crucial events, one of which was a meeting between the ministry and the Chinese Ambassador to Uganda in 2021.
The ministry said already about 150km of land out of the 272km of the right of way had been acquired.
“Uganda plans to develop approximately 1,700km of SGR in a phased manner starting with the Eastern Route from the border with Kenya at Malaba to Kampala (272km),” the ministry noted.
Other lines will connect to the northern region at the South Sudan border while other two will link to the DR Congo border, with another linking south western region at the border with Rwanda.
The SGR will replace an age-old meter gauge line built during colonial times and will link with the planned Kenyan SGR, which connects to the coastal city of Mombasa.
The SGR is expected to boost regional trade while reducing pressure from cargo trucks on the road network.