Turkish construction company Yapı Merkezi and the Ugandan government have signed a contract to build a 272-kilometer railway in Uganda. The project aims to increase regional trade and is set to cost 2,7 billion euros (about $3 billion). Construction on the project will begin in November and will take 48 months to complete.
Perez Wamburu, Uganda’s Standard Gauge Railway project coordinator, said the project is the first section of a planned 1.700km electrified railway line. The project is expected to provide a significant boost to trade by connecting Uganda’s landlocked location to its neighbour’s railway network, with a railway line extending to Malaba on the Kenyan border, and to the Indian Ocean port of Mombasa.
Speaking at the signing ceremony, Bageya Waiswa, Permanent Secretary of the Uganda Ministry of Labour, stressed that the project will increase trade and reduce transport costs. He also noted that Uganda will use its own funds and loans from export credit agencies to finance the project.
