The Ugandan government and Turkish construction company, Yapi Merkezi, inked a contract on Monday to build a 272-kilometer (169-mile) stretch of railway, an official from Uganda stated.
Perez Wamburu, the project coordinator for Uganda’s Standard Gauge Railway, stated that the agreement covered the first phase of a 1,700 km electrified train line, costing 2.7 billion euros ($3 billion).
According to Wamburu, work on the project will begin in November.
At the signing event, Bageya Waiswa, the permanent secretary of Uganda’s works ministry, stated that the project will boost trade and lower transportation costs.
He stated that Uganda will finance the project, which will take 48 months to finish once it is underway, using both its own money and loans from export credit institutions.
The rail segment will connect landlocked Uganda to its neighbour’s rail network at the Kenyan border, Malaba, and eventually the Indian Ocean seaport of Mombasa. It will stretch from the capital, Kampala, to this location.
Uganda and China Harbour and Engineering Company Ltd. (CHEC) reached an agreement in 2015 to carry out the project, provided that CHEC assisted in obtaining funding for the railway from the Chinese government.
Uganda ended the deal last year and started negotiations with Yapi Merkezi, which is working on a project identical to this in adjacent Tanzania, after years of failed negotiations.