The East African nation has experienced delays to the funding of a $2.3 billion standard-gauge railway for the Kampala-Malaba route, for which the Export-Import Bank of China is expected to finance 85 per cent of the budget.
Sunday 09, June 2019
(Bloomberg) --Uganda plans to invest $205 million in restoring a railway from the capital Kampala to the Kenyan border following delays to securing funding for a planned high-speed alternative to the route.
Stanley Sendegeya, Uganda Railways Corporation’s Chief Financial Officer, said that the move will boost monthly freight capacity to 120,000 metric tonnes from the current 20,000 tonnes by 2026.
“We keep on turning down customers because with the little money from the government, amounting to $2 million annually, we cannot handle much business, customers turn to using trucks,” Sendegeya said.
The project, conceived six years ago, will be built simultaneously with the Kenyan section linking to the Ugandan border, according to the government.