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Inside Shs11 trillion Standard Gauge Railway deal with Turkish firm

Uganda has secured a $3 billion (about Shs11 trillion) contract with Turkish construction firm Yapi Merkezi to build a 272km section of railway aimed at boosting regional trade and economic integration.
The agreement, part of the Northern Corridor Integration Projects (NCIP), was signed in Kampala by Waiswa Bageya, Permanent Secretary of the Ministry of Works and Transport, and Yapi Merkezi Holdings Vice Chairman, Erdem Arıoğlu.
The agreement, part of the Northern Corridor Integration Projects (NCIP), was signed in Kampala by Waiswa Bageya, Permanent Secretary of the Ministry of Works and Transport, and Yapi Merkezi Holdings Vice Chairman, Erdem Arıoğlu.

The agreement, part of the Northern Corridor Integration Projects (NCIP), was signed in Kampala by Waiswa Bageya, Permanent Secretary of the Ministry of Works and Transport, and Yapi Merkezi Holdings Vice Chairman, Erdem Arıoğlu.

The Minister of Works and Transport, Gen. Edward Katumba Wamala, and Turkish Ambassador Fatih Ak were also present. Uganda’s Standard Gauge Railway (SGR) project coordinator, Conon Perez Wamburu, confirmed that this deal covers the first section of a planned 1,700 km electric rail line, costing 2.7 billion euros.

Construction is expected to begin in November and take 48 months to complete, funded by Uganda's own resources and export credit loans.

Ambassador Richard Kabonero, National Coordinator for the NCIP, hailed the agreement as a key step towards regional cooperation and economic transformation, emphasising the importance of private sector involvement.

The SGR project aims to link Uganda with Kenya, Rwanda, and South Sudan, reducing business costs and improving lives.

Neighbouring Kenya is also extending its SGR line from Naivasha to Malaba and Kisumu, with transport ministers from the region agreeing to collaborate on securing funds to complete the remaining phases. The NCIP, comprising 14 clusters, covers various cooperation areas among the member states.

Uganda’s Commissioner for Infrastructure and Social Services, Patrick Mwanja, said the SGR project is essential for regional connectivity and economic growth.

The project will revamp the existing railway network and construct new lines connecting Mombasa to Kampala, Kasese, and Kigali.

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