Business
Rwanda, Uganda kick-start regional railway project
Publish Date: May 15, 2014
Rwanda, Uganda kick-start regional railway project
Kenya president Uhuru Kenyatta launching the construction of the new railway line
  • mail
  • img
newvision

The governments of Rwanda and Uganda are working closely to procure the consultancy for the feasibility studies and fund mobilisation for the Standard Gauge Railway (SGR) project set to run from Mombasa to Kigali through Uganda.
 
The studies will precede the preliminary designs for the railway.
 
Monique Mukaruliza, the national coordinator of the Tripartite Initiative, said the two countries will jointly procure consultancy services for the Kampala-Kigali section that is expected to go through Mirama Hills, Rwanda’s New Times has reported.
 
“Rwanda is jointly working with Uganda in the feasibility studies and fund mobilisation to ensure the project becomes a success,” Mukaruliza said.
 
Mukaruliza said the ministers of finance of the two countries had been directed to explore financing options.
 
“For the financing of the SGR project, the Summit of Heads of State directed the ministers of finance to explore financing for the project using both the African Development Bank (Africa 50) and the China Exim Bank approaches,” she said.
 
Rwanda, Kenya and Uganda signed an MoU with the African Development Bank/Africa50 on the financing modalities of the project in February 2014 in Kampala.
 
The MoU aimed at making the project bankable where parties shall work together for the development, structuring, costing, financing, construction and operation of the railway estimated to cover nearly 3000km.
 
The Northern Corridor Transit and Transport Coordination Authority report released earlier this month indicated that the government of Rwanda had secured funds to finance the preliminary designs of the section from Mirama Hills to Kigali.
 
 Ugandan President Yoweri Kaguta Museveni, Kenyan President Uhuru Kenyatta and Rwanda President Paul Kagame after thUganda's President Yoweri Museveni (L), Rwanda's President Paul Kagame (2nd R) and their host Kenya's President Uhuru Kenyatta (L) attend the commissioning of a new berth at a port in the coastal town of Mombasa August 28, 2013. REUTERS
 
Over the weekend, President Paul Kagame joined East African counterparts involved in the project, Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda and Salva Kiir of South Sudan in signing a deal with the Chinese Prime Minister, Li Keqiang, on the financing of the first phase of the project (Mombasa-Nairobi).
 
The first phase of the project is expected to cost $3.7  billion (Rwf2.6 trillion) with China expected to fund 90 per cent of the project while the other 10 per cent will be provided by the Kenyan government.
 
The standard gauge railway is aimed at providing efficient and cost effective rail transport for both freight and passengers across the region.
 
It is intended to reduce the cost of doing business by reducing the cost of transport, a move that could turn the East African region into a competitive business hub.
 
Businesses in the region, especially importers, and exporters are already upbeat about the project, saying it will help improve their efficiency and reduce the cost of doing business.
 
“We expect the cost of exports to reduce and this will significantly increase the price of Rwandan coffee on the international market,” Pierre Munyura, the head of coffee processors and exporters said. 
 
The standard gauge railway is expected to be complete by 2018.
 
It is expected to cover a distance of about 2,935 kilometres and have features such as passenger trains with a speed of 120 kilometres per hour and freight trains designed to move at 80 kilometres per hour.
 
Related stories
 
China signs mega East Africa rail deal Publish Date: May 12, 2014 
 
 
East Africa to build two oil pipelines Publish Date: Jun 26, 2013
 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
ERA licenses 9 renewable energy projects
An additional 9 renewable electricity plants, some under the Global Energy Transfer for Feed-in-Tarrifs (GET-FiT) programme, have been licensed to generate 132.7MW to boost Uganda’s transformation into an upper middle class country....
Pump attendants tipped on safety standards in case of fire
Vivo Energy, the company that distributes and markets Shell branded fuels and lubricants has conducted a fire drill to test the response preparedness by staff at Shell Service Stations in case of a fire outbreak. The drill was conducted at Shell Kira Road located at the Bukoto white flats....
UAE Exchange customer wins Xpress Money ‘Win Big’ second weekly draw
Xpress Money recently announced the second weekly draw winner of its ongoing promotion – Win Big. Ms. Ann Minviluz Banquerigo, a customer of UAE Exchange, Lugogo Mall branch, won herself a prize money of UGX 250,000 by simply sending money using Xpress Money services....
Total CEO de Margerie killed in Moscow as jet hits snow plough
MOSCOW - The chief executive of French oil major Total, Christophe de Margerie, was killed when his private jet collided with a snow plough as it was taking off from Moscow's Vnukovo airport on Monday night....
Govt to identify key opportunities for growth
THE Government and World Bank are preparing a joint ‘Country Economic Memorandum’ report, which will identify key opportunities and challenges to accelerating socio-economic transformation...
Business guide in conflict resolution developed
A business guide for the business community to resolve conflicts without resorting to courts of law has been developed....
Was Oscar Pistorius' 5 year sentence fair and just?
Yes
No
Can't Say
follow us
subscribe to our news letter