Govt picks Turkish firm for Malaba-Kampala SGR

The construction of the long-awaited multi-billion Standard Gauge Railway (SGR) from the Eastern border of Malaba to Kampala is set to start before the end of the year.

Mr Perez Wamburu, the project coordinator, said the Malaba-Kampala (eastern route) will now be constructed by M/s Yapi Merkezi, a Turkish contractor.

By press time last evening, it was however, unclear how much money the Turkish firm was pumping into the project. The Chinese had promised to inject about $2.3b.

“We are at the tail end of the procurement of Yapi Merkezi. We have discussed the costs and we are at the bottom line of agreeing that we shall have the contract after it has been approved by the Attorney General. We hope to start before the end of this year,’’ Mr Wamburu told the media during a briefing at Uganda Media Centre in Kampala yesterday.

“We have done due diligence on this company and we have seen what they have done in Tanzania,’’ he added.

The development comes nine years after the project was launched in the East African Community partner states of Uganda, Kenya, South Sudan, Rwanda, and Tanzania. The project aims at reducing the high costs of transport associated with delays of goods in transit. 

Mr Wamburu said they will soon pass the project to the Ministry of Finance for review.
“We are at the tail end of the procurement process. Maybe in a few weeks, we shall sign the contract and things will move [faster],’’ Mr Wamburu said.

Speaking at the same event, the Minister of State for ICT and National Guidance, Mr Godfrey Kabyanga, revealed how the initial Chinese contractor failed, citing unfavourable conditions.

Uganda was initially looking at the China Exim Bank for financing to construct the Malaba-Kampala SGR line.

“Their conditions were not favourable to us but we’ve gone with the Turkish firm. They are more favourable and we are going to work with them,” Mr Kabyanga said.  “The development of the SGR is on and work will commence as soon as the financing arrangements are sorted so Ugandans should not be skeptical,” he added.

Kenya and Uganda set out to develop an SGR system from Mombasa to Kampala via Nairobi and Kisumu.

Kenya has since developed their SGR from Mombasa to Nairobi, Kisumu to Naivasha and the line is operational. However, Uganda is in the process of implementing it from Malaba to Kampala.

Mr Kabyanga said Cabinet sat on Monday and received a report from the Works ministry about the progress of the SGR project in Uganda.

The other objectives of the railway project measuring about 1,500 kilometres are to provide a modern and high-capacity railway network that will reduce transit times, facilitate the movement of goods and people and promote economic growth by creating seamless connectivity within Uganda and neighbouring countries.

Background
In 2013, leaders from Uganda, Kenya, Tanzania, South Sudan, and Rwanda, broke ground for the construction of the SGR to link the member states with the view of boosting trade in the region that has more than 300 million people.

So far, it is only Kenya and Tanzania that have made significant progress with the construction lines in their respective countries.

The Malaba-Kampala stretch that is to be worked upon is 332 kilometres.