Railway concessionaire takes over in August

Jul 14, 2006

THE Government will pay the 1,200 former workers of the Uganda Railways Corporation (URC) sh16b in terminal benefits by the end of July as the concessionaire takes over the operations of the Uganda-Kenya railway line in August.

By Mikaili Sseppuya
THE Government will pay the 1,200 former workers of the Uganda Railways Corporation (URC) sh16b in terminal benefits by the end of July as the concessionaire takes over the operations of the Uganda-Kenya railway line in August.

The money is severance pay the workers are entitled following the joint-concession of the Uganda-Kenya railway corporations to Rift Valley Railways Corporation (RVRC).

The Privatisation Unit spokesman, Jim Mugunga, said this was confirmed after the works minister John Nasasira met the RVRC’s Roy Puffet, URC and the PU officials in Kampala on Monday. “The minister (Nasasira) was updated on the status of the railways privatisation.

“He found it to be going forward smoothly with RVRC hoping to take over by end of August,” Mugunga said.

“They have already retained Deloitte&Touche to review the human resources requirements.
“Workers will be paid terminal benefits amounting to sh16b by the end of July,” he said.

Mugunga said the processing of the payments was going on.

“The Auditor General is verifying the process,” he said. Mugunga said Nasasira had committed himself to resolving issues which had in the past impeded the free flow of cargo between Uganda and Kenya.

RVRC won the concession to manage the URC and KRC earlier this year for 25 years. But the railways had problems with workers terminal benefits.

and initially they got court injunctions to stop the privatization going forward before they were paid.

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