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Uganda Inks Deal With Turkish Firm for Major Rail Project

19:21, 14 October 2024

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Muhammad Nooh Osman

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The agreement comes after a failed partnership with a Chinese constructor. Despite a 2015 agreement, the firm failed to secure funding from China for the project, leading to its termination last year. Uganda subsequently entered into negotiations with Yapi Merkezi, which is currently undertaking a similar rail project in neighboring Tanzania.

Sputnik

Uganda has signed a contract with Turkish construction company Yapi Merkezi to build a 272-kilometer section of a new railway line, marking a significant step towards boosting regional trade and improving infrastructure.

The agreement, signed on Monday, covers the first phase of Uganda's ambitious 1,700-kilometer Standard Gauge Railway project, with the initial segment costing €2.7 billion ($3 billion). Construction is set to begin in November.

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Uganda's Works Ministry Permanent Secretary Bageya Waiswa highlighted the project's potential to enhance trade and reduce transportation costs within the region. The railway line will connect landlocked Uganda to Kenya's rail network, ultimately linking to the Indian Ocean port of Mombasa.

The project will be financed through a combination of Ugandan funds and export credit financing. Once construction begins, the project is expected to take 48 months to complete.