- Uganda to begin construction of Standard Gauge Railway (SGR) connecting with Kenya and other neighboring countries
- Project faced delays due to funding challenges and complications with previous contractors
- Switch to Turkish construction firm Yapi Merkezi due to failed negotiations with China and diversifying foreign partnerships
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Uganda is set to begin construction of the long-awaited Standard Gauge Railway (SGR), marking a significant step towards enhancing the country's infrastructure and economic prospects.
The announcement was made today, Wednesday, July 31 by Dr Chris Baryomunsi, the Minister of ICT and National Guidance, while addressing the press.
The SGR project, a joint initiative under the Northern Corridor Infrastructure Projects (NCIP), aims to connect Uganda with Kenya and other neighbouring countries, including Rwanda, South Sudan, and the Democratic Republic of the Congo.
The SGR project has faced numerous delays since its inception. Initial plans were disrupted by funding challenges and complications with previous contractors.
Originally, Uganda had signed an agreement with China Harbour Engineering Company Ltd (CHEC) in 2015. However, negotiations for funding from China did not materialize, leading Uganda to terminate the arrangement and seek new partners.
The project has since been taken over by Yapi Merkezi, a Turkish construction firm known for its work in other African countries, including Tanzania. The switch to Turkish involvement is part of a broader trend of diversifying Uganda's foreign partnerships.
The Ugandan government is now in the advanced stages of finalizing contracts and securing alternative funding, with construction expected to begin this year.
The 273-kilometer line will stretch from Malaba, at the Kenyan border, to Kampala. This route is strategically vital, as it will connect with Kenya's existing SGR line, facilitating smoother and more cost-effective transport of goods.
The project is expected to significantly reduce transportation costs and transit times, with the potential to transform Uganda's economy by improving trade efficiency and attracting foreign direct investment.
Despite the optimistic outlook, challenges remain. The Ugandan government is currently working on compensating individuals affected by the project, a process that has been slow and fraught with complications. The acquisition of land and right of way has been a significant hurdle, with ongoing efforts to resolve compensation issues, particularly in critical areas like Jinja.
The SGR project is a crucial component of Uganda's Vision 2040, which envisions a transformed economy with enhanced infrastructure.
The new railway is expected to alleviate the burden on the country's ageing metre-gauge railway, which has struggled to meet the demands of modern transportation. By providing a faster, more reliable alternative, the SGR is set to play a key role in Uganda's journey towards becoming a middle-income country.