Uganda government to sign railway loan

Uganda-railway_Uganda_railways_assessment_2010_-_Flickr_-_US_Army_Africa_(6)Uganda is likely to sign a loan agreement for the construction of the standard gauge railway (SGR) by October 2016, officials have said.

Government is expected to obtain the money from China’s Exim bank for the Uganda section of the SGR, which is estimated to cost USD 3.2 billion. The line will be constructed by China Harbour Engineering Company Limited (CHEC). Uganda’s section will move from Malaba to Kampala and then connect to Rwanda through Mirama hills.

The line will also connect to the DRC through Kasese and Arua districts. Early last year, a Chinese delegation visited Uganda and said they would only release the money after they had conducted a joint feasibility study with Uganda.

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