Rail workshop under receivership

By Vision Reporter

Added 3rd October 2007 03:00 AM

THE Government has put Nalukolongo Railway Workshop under liquidation.

By Mikaili Sseppuya

THE Government has put Nalukolongo Railway Workshop under liquidation.

The official receiver, Bemanya Twebaze, has been in charge of the workshop’s assets since September 26.

According to a notice, all debtors have been given one month to pay the workshop’s debts to Twebaze.

The Privatisation Unit’s (PU) spokesman, Jim Mugunga, said the aim of the liquidation was to collect all the assets of URC following the concessioning of the railways to Rift Valley Railways (RVR).

“The Government wants all these assets under the Uganda Railways Corporation (URC) which is looking after the residue of assets not taken over by RVR,” Mugunga said.

“The assets of the workshop were ceded to RVR when they took over the concession,” he said.

However, there were a number of companies which were also involved and assets that were not taken over by RVR. URC will be looking after those,” Mugunga said.

Under the concession agreement, RVR will use assets of the Uganda and Kenya railways for 25 years after which they will revert back to the owners.

The workshop was established to repair locomotives for the regional railways, leaving the railways management to concentrate on their core work of transport. It had assets worth over $20m (sh35b).

It was run by Canadian firm Bombardier Transporters between 1998 and 2005. The company won a World Aware Award.

Rail workshop under receivership

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