Uganda Wants $2.3 Billion China Rail Loan By September

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Ugandan President Yoweri Museveni directed government officials to sign off on a $2.3 billion Chinese loan for a new railway by September to curb further delays on the project.

He asked for more flexibility in negotiating with the Export-Import Bank of China, without necessarily compromising the project, according to a statement by Works Minister of State Katumba Wamala on the parliament’s website. Uganda has failed to secure the financing since 2015 following differing outcomes of feasibility studies done by the two parties, according to the statement.

Landlocked Uganda plans a 273-kilometer (170-mile) line from the Kenyan border town of Malaba to the capital, Kampala. It has already acquired land for a 100-kilometer stretch and plans to borrow 85 percent of the planned cost from the Chinese lender.

READ MORE: President Orders On SGR Loan

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4 thoughts on “Uganda Wants $2.3 Billion China Rail Loan By September”

  1. For sure we need another Mean of Transport in Uganda and the Railway idea turns out to be good. However, according to what is on the ground, those that are planning to benefit from this project are still working hard to fulfill their personal gains first. I heard a number of Businessmen crying over a certain local radio station after loosing chunks of money to the earlier contracted construction companies under this project and no one was up to help them. The point is, why don’t the government first show something with the part they have before rushing for more loans?

  2. billions and billions of money has been choped by those in power,trying to foolish ugandans.I wonder,the construction project of SGR of uganda is more costly compared to that of kenya though kenya’s is longer than that of uganda (killometres)

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