RVR could lose railway concession
Feb 12, 2009
THE Rift Valley Railways’ (RVR) management of the Kenya and Uganda railways is in balance after the Kenya High Court allowed the Kenya government to terminate the contract.
By Mikaili Sseppuya
THE Rift Valley Railways’ (RVR) management of the Kenya and Uganda railways is in balance after the Kenya High Court allowed the Kenya government to terminate the contract.
Kenya Railways Corporation took the firm to court in January seeking a court order to terminate the concession because of the firm’s poor performance.
However, RVR’s had earlier got a court injunction stopping attempts by both governments to terminate the contract.
Rift Valley Railways won a 25-year concession to operate and refurbish the Kenya-Uganda railway line in 2005. It started operations in November 2006.
The firm took over roles hitherto done by the Kenya Railways and Uganda Railways Corporation.
RVR’s performance in the past three years has not been impressive as had been envisaged. They have on various ocassions accused it of reneging on the contract.
The works and transport minister, Eng. John Nasasira, said the firm had forgotten about its job in Uganda. He was officiating at its first anniversary celebrations in 2007 in Kampala.
Last August, the Kenya and Uganda governments gave RVR a three months warning to style up or lose the contract, but no action was taken thereafter.
The two countries had hoped RVR would revamp the railway line and provide wagons to ease movement, especially for heavy cargo to reduce pressure on the roads.
This, they said, would reduce transport costs and increased security for goods.
However, their hopes were gradually eroded as RVR was unable to fulfil its contractual obligations, saying it was underfunded.
When the firm got new partners last year, hopes were high they would provide funding to improve on the infrastructure and fulfil its other obligations.
This has, however, not materialised. Uganda was also unhappy because the percentage of freight from the Mombasa Port has not increased as envisaged.
But the RVR public relations officer, E. Zalwango, said they were operating normally.
“According to the contract, they will have to compensate us if the concession is cancelled,†she said in an interview.
THE Rift Valley Railways’ (RVR) management of the Kenya and Uganda railways is in balance after the Kenya High Court allowed the Kenya government to terminate the contract.
Kenya Railways Corporation took the firm to court in January seeking a court order to terminate the concession because of the firm’s poor performance.
However, RVR’s had earlier got a court injunction stopping attempts by both governments to terminate the contract.
Rift Valley Railways won a 25-year concession to operate and refurbish the Kenya-Uganda railway line in 2005. It started operations in November 2006.
The firm took over roles hitherto done by the Kenya Railways and Uganda Railways Corporation.
RVR’s performance in the past three years has not been impressive as had been envisaged. They have on various ocassions accused it of reneging on the contract.
The works and transport minister, Eng. John Nasasira, said the firm had forgotten about its job in Uganda. He was officiating at its first anniversary celebrations in 2007 in Kampala.
Last August, the Kenya and Uganda governments gave RVR a three months warning to style up or lose the contract, but no action was taken thereafter.
The two countries had hoped RVR would revamp the railway line and provide wagons to ease movement, especially for heavy cargo to reduce pressure on the roads.
This, they said, would reduce transport costs and increased security for goods.
However, their hopes were gradually eroded as RVR was unable to fulfil its contractual obligations, saying it was underfunded.
When the firm got new partners last year, hopes were high they would provide funding to improve on the infrastructure and fulfil its other obligations.
This has, however, not materialised. Uganda was also unhappy because the percentage of freight from the Mombasa Port has not increased as envisaged.
But the RVR public relations officer, E. Zalwango, said they were operating normally.
“According to the contract, they will have to compensate us if the concession is cancelled,†she said in an interview.