KAMPALA, UGANDA —Uganda has signed a landmark $3 billion (£2.3 billion) contract with Turkish construction firm Yapi Merkezi to build a 272km section of railway, boosting regional trade and economic integration.
The deal, a priority for the Northern Corridor Integration Projects (NCIP), was signed in Kampala by Mr. Waiswa Bageya, the Permanent Secretary at the Ministry of Works and Transport, and Yapi Merkezi Holdings Vice Chairman Erdem Arıoğlu.
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Minister of Works and Transport, Gen. Edward Katumba Wamala, and Turkish Ambassador Fatih Ak were also present.
Uganda’s Standard Gauge Railway (SGR) project coordinator, Conon 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.
“Construction is set to begin in November and will take 48 months to complete,” Mr. Wamburu said.
Uganda will finance the project using its own funds and credit from export credit organizations.
Ambassador Richard Kabonero, the National Coordinator for the Northern Corridor Integration Projects (NCIP), hailed the agreement as a crucial step towards regional cooperation and economic transformation.
“The SGR project requires private investment to unlock its full potential,” Ambassador Kabonero said. “This contract demonstrates the commitment to securing funding and leveraging private sector expertise.”
“The SGR project aims to connect Uganda, Kenya, Rwanda, and South Sudan, reducing business costs and improving lives,” he added.
Neighboring Kenya is also extending the SGR from Naivasha to Malaba and Kisumu after transport ministers agreed to jointly mobilize resources to complete the remaining phase of the Mombasa-Nairobi-Naivasha-Kisumu-Malaba-Kampala SGR.
The ministers, who held a meeting at Kenya’s coastal city of Mombasa, said in a joint communiqué in May that by jointly securing additional financing, implementation of the final phase of the SGR will be fast-tracked.
Uganda’s Commissioner for Infrastructure and Social Services, Patrick Mwanja, emphasized the project’s significance.
“The SGR project seeks to revamp the existing railway network and construct a new line from Kenya’s port city of Mombasa to Kampala, Uganda, and onward to Kasese and Kigali in Rwanda,” Commissioner Mwanja said.
“This project is crucial for regional connectivity and economic growth,” he added. “We’re committed to making it a success.”
Ambassador Kabonero also stressed the importance of private sector involvement in the NCIP.
“Local companies participating in the EACOP project and suppliers providing materials are crucial examples of successful private sector engagement,” he said.
He noted that the NCIP coordination efforts have already shown success in reducing call costs within the region under the One Network Area initiative.
“This initiative aims to eliminate roaming charges, allowing citizens to make calls across member states without incurring additional costs,” Ambassador Kabonero explained.
