Nasasira warns Rift Valley Railways
JOHN Nasasira, the works minister, has warned the Rift Valley Railway (RVR) over poor performance.
By Mary Karugaba
JOHN Nasasira, the works minister, has warned the Rift Valley Railway (RVR) over poor performance.
Nasasira said over the weekend that RVR, the concessionaire of the Uganda and Kenya railways, had not performed to expectations.
In a policy statement to Parliament, the minister warned that unless RVR improved substantially in the near future, the Government would be compelled to exercise the option available to it in the concession agreement.
The minister did not, however, specify what action would be taken against the company in case it fails to perform.
“Railway freight volumes have not increased as expected. The company has breached several important provisions of the concession agreement including those pertaining to the payment of the concessional fees and maintenance of the conceded assets,†the statement said. The minister disclosed that the company’s quality of service had “even been perceived by the business community as worse than before the concession.â€
He observed that due to severe financial and managerial problems, the company was searching for an equity partner to bring in the required financial resources and management.
Nasasira said the ministry would provide Uganda Railways Corporation (URC) with sh280m for maintenance of closed railway lines during this financial year.
Following the concessioning
of the railway in November 2006, the URC was limited to monitoring the concession and to provide technical support to the Government on railway matter.
The closed lines are the Kampala-Kasese, the Tororo- Pakwach routes and Busoga loop.
The lines were concessioned but are not yet taken over by RVR for operation.
Their maintenance activities include the safeguarding of the railway assets, encroachment control and vegetation control.
Nasasira said feasibility studies for the re-opening of the closed lines would be undertaken during this financial year.
A total of sh2b is needed, the minister added.
“Uganda Railways Corporation is not able to perform its entire obligation.
Accordingly, the ministry will provide sh280m for maintenance,†he said.
Meanwhile, news coming from Kenya indicate that RVR is bankrupt.
Its survival depends on cash from government and its creditors, Prisca Komora, the Kenya Auditor General, said.
In a report to Parliament last week, Koroma said KR owed workers and creditors Ksh13b.
“The corporation is therefore technically insolvent,†Koroma said.
JOHN Nasasira, the works minister, has warned the Rift Valley Railway (RVR) over poor performance.
Nasasira said over the weekend that RVR, the concessionaire of the Uganda and Kenya railways, had not performed to expectations.
In a policy statement to Parliament, the minister warned that unless RVR improved substantially in the near future, the Government would be compelled to exercise the option available to it in the concession agreement.
The minister did not, however, specify what action would be taken against the company in case it fails to perform.
“Railway freight volumes have not increased as expected. The company has breached several important provisions of the concession agreement including those pertaining to the payment of the concessional fees and maintenance of the conceded assets,†the statement said. The minister disclosed that the company’s quality of service had “even been perceived by the business community as worse than before the concession.â€
He observed that due to severe financial and managerial problems, the company was searching for an equity partner to bring in the required financial resources and management.
Nasasira said the ministry would provide Uganda Railways Corporation (URC) with sh280m for maintenance of closed railway lines during this financial year.
Following the concessioning
of the railway in November 2006, the URC was limited to monitoring the concession and to provide technical support to the Government on railway matter.
The closed lines are the Kampala-Kasese, the Tororo- Pakwach routes and Busoga loop.
The lines were concessioned but are not yet taken over by RVR for operation.
Their maintenance activities include the safeguarding of the railway assets, encroachment control and vegetation control.
Nasasira said feasibility studies for the re-opening of the closed lines would be undertaken during this financial year.
A total of sh2b is needed, the minister added.
“Uganda Railways Corporation is not able to perform its entire obligation.
Accordingly, the ministry will provide sh280m for maintenance,†he said.
Meanwhile, news coming from Kenya indicate that RVR is bankrupt.
Its survival depends on cash from government and its creditors, Prisca Komora, the Kenya Auditor General, said.
In a report to Parliament last week, Koroma said KR owed workers and creditors Ksh13b.
“The corporation is therefore technically insolvent,†Koroma said.