Inside SGR deal with Turkish firm

Back on track

The Works and Transport Minister, Gen Edward Katumba Wamala, said yesterday that “the SGR will become the backbone of our surface transport system and will provide the much-needed transport capacity in the country and the region as cargo and passenger transport demand has been increasing rapidly over the last decade.”

Gen Wamala added: “As Uganda, we are aware that, for member countries to reap the most benefits out of SGR seamlessness, construction of the Naivasha-Kisumu-Malaba and the Malaba-Kampala SGR sections should be fast-tracked and ensure interconnectivity at the earliest possible time. These timelines have been discussed with our partners, the Government of the Republic of Kenya.”

According to Mr Perez Wamburu, Uganda’s SGR project coordinator, the other SGR lines include the northern line from Tororo-Gulu-Nimule at the South Sudan border (465km) with a spur from Gulu-Pakwach-Vurra (at the Democratic Republic of the Congo or DRC border, spanning 297km); the western line from Kampala-Bihanga-Kasese-Mpondwe (via the DRC border), with spur to Hima Cement (383km); and southern line from Bihanga-Mirama hills (via the Rwanda border), with a spur to Muko (280km).

“Kenya has completed construction of the Mombasa-Nairobi-Naivasha SGR line [spanning 592km] and plans are underway to extend the SGR from Naivasha to Malaba at its border with Uganda. Tanzania has also made tremendous progress,” Mr Wamburu said yesterday.

 During yesterday’s signing ceremony, Mr Bageya Waiswa, the permanent secretary (PS) in the Ministry of Works and Transport, said the SGR Malaba-Kampala project is a critical component of the East African Community Railway Master Plan. PS Waiswa also said the project will also help actualise the Northern Corridor Integrated Projects Railway Network, which will connect Uganda to the Port of Mombasa through Nairobi.

“Once constructed, we envisage that the project will come with multiplier benefits to the regional and national communities, which is very important for regional connectivity, trade facilitation and, therefore, economic growth,” he said of the project, adding: “These benefits include increased trade, reduced transportation costs, job creation, improved safety, reduced transit/travel times, enhanced quality of life of communities in the region and reduced carbon emissions and pollution.”

Despite the stop-start journey of the SGR project, Mr Wamburu was eager to point out “key milestones” that have been achieved. These, he offered, include the acquisition of about 150km out of 272km of the right of way (ROW) between Malaba and Mayuge, which translates to about 54 percent of the entire ROW from Malaba-Kampala. Plans, he proceeded to note, are underway to extend electricity to SGR sub-stations.

Project components

Uganda’s SGR project coordinator also disclosed that the government is well on track insofar as planning for local content is concerned, with a target of 40 percent of the contract value well within reach.

 On his part,Gen Wamala said: “The SGR is one of the top government projects as conceived by our President, and he is very keen on its timely implementation. He has reiterated this on several occasions, including recently at the 62nd Independence Day celebrations in Busia.”

It is estimated that after getting underway in the first week of November, Yapi Merkezi will take 48 months to complete the project. The Turkish company is carrying out a similar project in neighbouring Tanzania.

“We task the contractor, Yapi Merkezi, to build the SGR to the highest standards, within time and cost. We further task Yapi to ensure that environmental and social requirements are adhered to and that you ensure a good working relationship with the SGR Project Management team, the MoWT (Works and Transport ministry) and the wider government to ensure smooth implementation of the project,” Minister Wamala said.

“Given, its magnitude and in line with our laws and strategies, we task Yapi to ensure that the project’s Local Content Strategy is adhered to ensure that local capacity is enhanced and that Ugandans benefit from the project right from the start. I implore you to be transparent in all matters of local content to avoid disputes which can hamper project delivery. This will enhance acceptability of the project,” he added.

 Turkish ambassador to Uganda Mehmet Fatih Ak said the signing of the contract for the construction of Malaba-Kampala SGR project is not just a milestone for the cities on the railway route but a momentous step forward for the whole Uganda.

Ambassador Ak said, throughout history, infrastructure has been the bedrock upon which economies have flourished. “Uganda being landlocked, depends heavily on road transport for trade, which can be costly and slow. This railway network, after the completion of the following phases linking Uganda to ports in neighbouring counties, would dramatically reduce transport costs, open up markets and make Ugandan exports more competitive on the global stage,” he said. 

Mr Ramathan Ggoobi, the secretary to the Treasury, said the SGR project is a game changer, not least because Kampala to Mombasa is the second most expensive road in the world after Chad and Cameroon. The SGR, he added, will cut the cost of the transport by half.

At a glance

Last year, Uganda terminated the agreement it had with CHEC to construct the SGR. It consequently entered talks with Yapi Merkezi. 

PS Waiswa said yesterday that the signing ceremony “marks the beginning of a transformative project.” Uganda, he added, expects “the SGR Project’s key milestones and deadlines to be adhered to to ensure the work is completed within 48 months, within budget and without compromising quality.”