Uganda’s President Yoweri Museveni said that Standard Gauge Railway (SGR) project will support industrialization programme and will cut the transport costs. He made the observations when he received a progress report from China Harbour Engineering Company (CHEC).
During report presentation, the President commended the CHEC to invite local suppliers that should be involved in the SGR project. The Chinese company is building an industrial estate around the railway and a railway school to train engineers to maintain the railway.
One of the provisions in the construction contract signed between the Government of Uganda and the contractor is that 40% of the materials to be used in construction should be sourced locally in Uganda as long as they meet the required quality, quantity and costs.
Until now, CHEC has invested USD 30 million in preparatory work for the SGR project including feasibility studies and training.
The 273 km SGR line will link Kampala, and the Kenyan border and should connect Rwanda’s rail network through Mirama hills.
The USD 3.2 billion project will be financed by China’s Export-Import Bank.
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