Govt dumps China for the Standard Guage Railway and gives it to Turkish.

By Francis Lubega

09^th February 2023

Government has terminated the contract of Chinese company contracted to finance and construct the Standard Guage Railway and awarded it to now a Turkish company known as M/S YAPI MERKEZi.

While presenting the updates on the progress of SGR before the parliamentary Physical Infrastructure Committee chaired by Robert Kasoli, The official from Ministry of Works lead by Minister Gen Katumba Wamala, the construction manager SGR Alfred Obong said that sources of financing the project has been finalized and other evaluations and human reason capital is on course.

However he noted that the main challenge the project faces is land acquisition on the right of way for the SGR which has delayed the project.

Obong said that as the ministry they have found challenges in multiple claims of land ownership, delayed issuance of land ownership titles by district land boards and delayed release of funds by government to pay off project affected person’s.

He said that apparently the project needs a total sum of 155bn to pay off the first eastern route from Malaba to Kampala worth 272km.

Obong also informed the committee that after the first phase of the SGR, they will focus of the Northern route of 762km, Western ND southern rout 383Km and lastly Bihanga-Mirama hills 280km.