The Ministry of Finance has released Shs 479.07 billion to kick-start the construction of the long-awaited Standard Gauge Railway (SGR). This release comes a day after the government signed a contract with Turkish construction firm Yapi Merkezi, which will spearhead the project.
According to Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi, the funds will primarily be used to acquire the right of way for the 272 km railway, which will run from Malaba to Kampala.
A portion of the funds will also go towards hiring a supervisor to monitor the project’s lead engineer and ensure that the construction adheres to the highest standards.
Speaking during the release of the 2024/2025 Quarter 2 budget allocations, Ggoobi emphasised that the problem Uganda faces is not a lack of funds but rather poor execution discipline.
"As you can see, our problem is not money," he said. "The problem is execution discipline, and we need to ensure projects are completed on time."
The electric railway line is expected to significantly transform Uganda’s trade landscape by reducing cargo export costs by half. Currently, Uganda is ranked as the second most expensive trade route globally, and the completion of the SGR is projected to make the country a highly competitive regional trade hub.
Yapi Merkezi, which has a strong track record in Tanzania's Standard Gauge Railway project, has been entrusted with the construction of Uganda's SGR.
The first phase of the project is expected to begin next month, marking a major step forward in Uganda's efforts to modernize its transport infrastructure and boost economic growth.
The SGR is part of a broader initiative to ease the movement of goods within East Africa, enhancing Uganda's strategic position as a key player in the region's logistics and transportation sector.