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Govt releases $75M to kickstart SGR construction

Uganda's Standard Gauge Railway project gains momentum with a $75M funding release. Discover how this crucial infrastructure initiative, led by Yapi Merkezi, is set to transform Uganda's economy and create jobs.

by Ronald Mayega | Reporter
05/06/2025
in Business, News
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President Yoweri Museveni launched the Malaba-Kampala project in November last year, emphasizing its role in significantly lowering the cost of doing business. Works are anticipated to be completed within 48 months from the launch date.
President Yoweri Museveni launched the Malaba-Kampala project in November last year, emphasizing its role in significantly lowering the cost of doing business. Works are anticipated to be completed within 48 months from the launch date.

KAMPALA, Uganda — The Ugandan government has released $75 million (about 270 billion shillings) to kickstart construction of the Standard Gauge Railway (SGR) project. The Ministry of Finance continues negotiations with financing partners for the ambitious infrastructure project.

Canon Engineer Perez Wamburu, the SGR project coordinator, stated the funds demonstrate the government’s commitment and aim to build confidence among stakeholders.

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In March, Uganda signed a Limited Notice to Proceed (LNTP) with Turkish firm Yapi Merkezi, enabling early works to begin. The agreement was signed in Kampala by Bageya Waiswa, Permanent Secretary of the Ministry of Works and Transport; Mert Oz, Yapi Merkezi’s Uganda Representative; and Can. Eng Perez Wamburu, SGR Uganda chief.

On Wednesday, June 4, Wamburu led the SGR project coordination team to introduce the contractor, Yapi Merkezi JV, and consultant, SSF JV, to stakeholders in Tororo District. Wamburu urged local officials at the council chambers to embrace the project, highlighting its potential to be a “game changer” for Uganda’s economy. He also introduced teams from Yapi Merkezi and the SSF Joint Venture consultants.

The project team then escorted the contractor on a tour of the railway corridor, starting from Kilometer Zero along the Malaba River and heading toward Kampala.

Wamburu noted that the contractor established a coordination office after a project kick-off meeting on April 14. The contractor is expected to begin mobilizing equipment and personnel, conducting engineering designs, defining the railway route, identifying local material sources, constructing labor camps, establishing concrete batching units, building a concrete sleeper factory, performing route surveys and training local communities.

President Yoweri Museveni launched the Malaba-Kampala project in November last year, emphasizing its role in significantly lowering the cost of doing business. Works are anticipated to be completed within 48 months from the launch date.

Mert Oz, representing contractor Yapi Merkezi, expressed optimism about the project, calling it a “serious game changer” for business and job creation. He pledged to apply their extensive technological expertise to deliver quality work, citing similar successes in neighboring Tanzania. Oz added that Tororo would benefit significantly from infrastructural development, including a large marshalling yard in Malaba for cargo classification, major mechanical works and a railway station.

He assured stakeholders that designs for the electrified railway system would meet international standards and promised employment opportunities for locals, asking the district to assist in identifying qualified candidates.

Wamburu also informed stakeholders that compensation for 59 project-affected persons (PAPs) has been delayed due to the absence of a clearance assessment report from the Ministry of Lands.

“It makes us happy,” said Gabriel Atama, the chief administrative officer, reiterating the district’s commitment to support the project without hindrance. “The project is something that makes us very happy, and it will be part of our work to make sure that the community is mobilized for social and economic development.”

Rebecca Akumu, the district vice chairperson, appealed to the project coordinator to ensure timely compensation for the remaining 59 PAPs. Deputy Resident District Commissioner Albert Amula urged all parties to embrace the project as a “serious game changer” and called for expedited compensation.

Kenneth Orono Nyapidi, the Tororo municipality mayor, expressed readiness to provide necessary support to the contractor.

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