SGR early works near completion

Uganda’s Standard Gauge Railway (SGR) project is preparing to move from site preparation to main construction as early works end this October, although land acquisition remains incomplete.

In an update on its X account, SGR Uganda said land acquisition had reached about 70 per cent. It also reported progress at the Iganga construction camp, where the government committed €75 million to establish facilities that will support railway construction.

These include a sleeper factory, a concrete batching plant, workers’ camps, a materials laboratory and a storage yard. Railway sleepers support the rails, while the batching plant will produce concrete for construction.

The early works fall under a Limited Notice to Proceed, which allows the contractor to undertake preparatory activities before the main construction phase.

“The SGR journey pushes on despite several challenges! The railway will be built!” the project team said.

Compensation has reached the final three areas along the route: Mukono, Wakiso and Kampala. However, the reported land acquisition figure leaves about 30 per cent outstanding. SGR Uganda did not give a firm date for the start of main construction.

Uganda signed a €2.7 billion construction contract with Turkish firm Yapi Merkezi on October 14, 2024. The planned 272-kilometre Malaba–Kampala railway forms the first phase of a wider national SGR network. President Yoweri Museveni launched the project in Tororo on November 21, 2024. 

The railway is intended to strengthen Uganda’s trade links with Kenya and improve access to the port of Mombasa. Its regional ambitions depend on connecting railway sections on both sides of the border. 

Funding remains central to the next phase. SGR Uganda said an OPEC Fund appraisal team would visit later this October to assess the project for possible co-financing. The update did not specify a funding amount or announce an approval.

The expected visit follows the Islamic Development Bank’s approval of €650.75 million for the railway. According to the Ministry of Finance, that financing will cover the 553-metre Jinja Nile Bridge, the 2.12-kilometre Mbuya–Kampala tunnel, six stations and three workshops. 

The ministry previously said the government aimed to conclude the project’s financing arrangements by November 2026. The latest update therefore points to progress on construction preparations, while land compensation and the search for additional funding continue.