Yapi Merkezi Wins $3B Bid to Build Rail to Link Uganda with Kenya

On 14 October 2024, the Uganda Government and Turkish Civil Works Contractor Yapi Merkezi signed a contract to build a 272-km section of railway in Uganda. The segment forms is called the Eastern Line and forms part of the 1,700-km railway network which is based on Standard Gauge Railway (SGR) designed for electric locomotives.

Construction is scheduled to start in November 2024 and will last 48 months. The project cost is about USD 3 billion with the financing coming the Ugandan government own funds and credit from export promotion banking institutions.

The rail section will connect the capital Kampala to Malaba near the border with Kenya. Thus, landlocked Uganda will be linked via rail t the seaport of Mombasa. The PS from the Ugandan Ministry of Works Bageya Waiswa stated that the project will bring down transport costs and contribute to boost regional trade.

It is to be recalled that Uganda initially signed an agreement with China Harbor and Engineering Company (CHEC) for the same project under the proviso that the company secures the necessary funding from the Chinese government. However, after years of fruitless talks, Uganda eventually decided to terminate the agreement and initiated discussions with Yapi Merkezi which was implementing a 1,219-km SGR project in neighboring Tanzania.

Another Turkish firm, Polat Yol Yapi, is building a 92-km road linking Muyembe to Nakapiripirit which will eventually link up Uganda to Kenya, South Sudan and Ethiopia.

The Uganda SGR is part of the East African Community Railway (EAC) Master Plan which aims to promote tighter economic integration via enhanced #connectivity.