Uganda has signed a contract with Turkish construction firm Yapi Merkezi to build the first part of its proposed Standard Gauge Railway, aimed at boosting regional trade. Under the terms of the deal, Yapi Merkezi will build 272 km of the proposed 1,700 km electric rail line. The section will cost $3 billion, with the Turkish firm set to begin construction in November. The entire project will take 48 months to complete and will connect Uganda’s capital, Kampala, to Malaba on the Kenyan border, linking Uganda to Kenya’s rail network and, ultimately, the port of Mombasa. According to Bageya Waiswa, the permanent secretary of Uganda’s Ministry of Works and Transport, the project will lower transport costs and stimulate trade. He revealed that the East African country will finance the project with its own funds and with credit from export credit organizations.
SOURCE: REUTERS
Uganda Contracts Turkish Company to Build Railway
