Government of Uganda has officially signed a contract with Turkish contractor Yapi Merkezi for the construction of the first 272 kilometers of the Standard Gauge Railway (SGR) in Uganda at a total cost of 2.7 billion euros (about Shs10.8 trillion).
Partly financed by the Government of Uganda, the railway will be connecting Malaba to Kampala is expected to be complete in 48 months, (4 years) from the date of groundbreaking.
Speaking at the contract signing ceremony in Kampala on Monday, the Minister of Works and Transport, Gen Edward Katumba Wamala, said this is a significant step in the history of Uganda.
“The 16-year long wait is over. It’s true the project has taken so long to be implemented. However, we are here today to deliver a contract and very soon, we shall invite you and others to the physical ground breaking at the start point of the project,” he said.
“The contractor, Yapi Merkezi, has already proven their expertise having efficiently constructed the Tanzanian SGR and we therefore trust them to conclude the first 272km in time and on budget,” Gen Katumba added.
The minister further explained the government of Kenya is also working on making the connection from Naivasha – Kisumu – Malaba.
“The SGR Uganda is a seamless project and our Kenyan counterparts are hard at work ensuring that they complete the Nivasha-Malaba section,” he said.
The Engineering, Procurement and Construction (EPC) contract will see Yapi Merkezi build the railway line, station buildings and electrification infrastructure and also procure the Rolling stock.
The project will have 40% local content and the minister called upon Yapi Merkezi to make use of local contractors.
“Ugandans have supplied material during projects such as construction of Nile bridge e.t.c. Make use of them so that they have a feel and benefit from the project,” he said.
The minister also said the existing metre gauge railway (MGR), which is being rehabilitated, will complement the SGR once completed.
“It’s not a waste of money, but a calculated decision to have both systems,” he said.
Fatih Mehmet, the Turkish ambassador to Uganda, said: “The SGR is a catalyst for regional integration and economic transformation. The Railway will increase the flow of goods along the Kampala – Mombasa route, and make Ugandan exports more competitive in the regional and global market.”
The total length of the SGR in Uganda will be 1,700 km. So far, land has been acquired for the first 150 km up to Jinja. The project will be implemented in phases, beginning with the 272 km stretch from Kampala to Malaba.
During a meeting of the Joint Ministerial Committee on SGR held in Mombasa, Kenya, early this year, Kenya, Uganda, Rwanda, and the Democratic Republic of Congo agreed to step up the mobilisation of funds to fast-track the development of the Standard Gauge Railway (SGR) project.
In a communique issued after the meeting, the transport ministers from the four counties reaffirmed their commitment to expediting the completion of the remaining SGR sections from Naivasha in Kenya to Uganda, Rwanda, South Sudan, and DRC.
Specifically, Kenya committed to resume the construction of the Naivasha-Kisumu-Malaba and Kisumu-Malaba SGR sections.
