Uganda Signs $3 Billion Deal with Turkish Firm to Build Railway

Written By Lisa Murimi

Uganda has signed a contract with Turkish construction company Yapi Merkezi to build a 272-kilometre section of its Standard Gauge Railway (SGR) in a bid to enhance regional trade, an official announced on Monday. 

The deal marks the first phase of a planned 1,700 km electric railway line aimed at improving Uganda’s infrastructure.

Perez Wamburu, Uganda’s SGR project coordinator, said the segment will cost Sh444 billion (2.7 billion euros or $3 billion) and construction is set to begin in November. 

The rail line will run from Kampala to Malaba, connecting Uganda to Kenya’s rail network and the Indian Ocean port of Mombasa.

At the signing ceremony, Uganda’s Works Ministry Permanent Secretary, Bageya Waiswa, emphasised the project’s potential to boost trade and reduce transport costs. 

Uganda will finance the railway using both domestic funds and credit from export credit organisations, with the project expected to take 48 months to complete.

Previously, Uganda had partnered with China Harbour and Engineering Company Ltd. (CHEC) but ended the agreement last year after unsuccessful funding negotiations. 

Yapi Merkezi, currently involved in a similar project in Tanzania, has taken over the contract.