China’s Exim Bank to fund Uganda SGR first phase

Ugnda SGR bridgeUganda is negociating with Exim Bank of China to fund the first phase of Standard Gauge Railway project, that involves the construction of a 273 km rail line between Kampala and Malaba, on the border with Kenya.
According to Kasingye Kyamugambi, the SGR Project Coordinator, the construction of the eastern section of the line is estimated at USD 2.3 billion and the country is negotiating with China’s Exim Bank to secure the financing of the project to soon launch the construction.
The Chinese contractors may begin the construction in 2017. China Harbour Engineering Company (CHEC) is preparing to start the construction of the 273 km line section and it should be completed within three and a half years. Until now, CHEC has invested USD 30 million in preparatory work for the SGR project including feasibility studies and training.
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 locally sourced in Uganda as long as they meet the required quality, quantity and costs.
Uganda’s SGR network will comprise of three major routes with a total route length of 1,614 km. The Eastern Route will start from Malaba to Kampala, the Northern Route will start from Tororo to Gulu to Nimule with a spur to Pakwach  and the western Route will start from Kampala to Mpondwe (at the DR Congo border) through Mityana.

Photo: Mpologoma River where a 1.95 km long SGR bridge will be built


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