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Contractor signs deal to build US$3bn Uganda railway
16 October 2024
Turkish contractor Yapı Merkezi has signed a deal with the Ugandan government to build a US$3 billion railway line in the African country.
The new railway line will run 273 kilometres from Malaba to Kampala (pictured). Image: Martin via AdobeStock - stock.adobe.com
Its work on the 273km-long Malaba-Kampala Railway will be one of the biggest projects Yapı Merkezi has ever undertaken abroad.
The deal for the standard gauge line, which will be electrified, includes construction of the line itself as well as the supply of rail vehicles.
Trains will run at a maximum speed of 120km/h along the line, along which will be a terminal, two large stations, four medium-sized stations, one marshaling yard and three freight stations.
The line, which will connect Uganda with Kenya, will have a load carrying capacity of 25 million tonnes a year.
The signing of the deal comes after Chinese contractor China Harbour previously inked a contract for the work in 2015. But Uganda’s government later rejected the deal because it did not fulfil its project financing obligation, according to Yapı Merkezi.
The Turkish contractor signed a memorandum of understanding that it would undertake the work with the Ugandan Ministry of Transport in July 2023 and negotiations over the contract were completed in July this year.
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