Uganda Moves Into Implementation Stage of Standard Gauge Railway Project

The long-awaited Standard Gauge Railway (SGR) project is officially moving from the planning phase into full implementation, the Ministry of Works and Transport announced today.

Speaking to journalists, Perez Wambulu, National Coordinator for the project, confirmed that the government signed a contract with the Turkish construction company, Yep Merkezi, in October 2024.

The project was officially launched by the President in November in Toronto. A limited notice to proceed, funded by the government with 75 million Euros, has enabled preliminary works to commence even as financing arrangements are being finalized.

“Surveys are ongoing along the 270-kilometer corridor from Malaba to Kampala, including soil investigations, design of structures, and environmental and social assessments,” Wambulu said.

“The contractor is also establishing a labor camp in Iganga and a factory for producing concrete sleepers locally, while engaging suppliers of aggregates and other materials.”

The government aims to maximise local participation through a symposium on Friday, August 29, at Speke Resort, Bunyonyo.

Wambulu encouraged Ugandans, especially local contractors, engineers, suppliers, and service providers, to take advantage of opportunities to participate in the project, which is valued at 2.7 billion dollars, with 40% earmarked for local consumption.

“This project is a once-in-a-lifetime opportunity for Uganda. It will leave a lasting impact on our economy, infrastructure, and technical capabilities,” he said.

“We are committed to transparency, integrity, and ensuring that quality, safety, and timely delivery are observed.”

Financing for the project is structured with 60% from export credit agencies, 25% from development finance institutions such as the Islamic Development Bank, African Development Bank, and OPEC Fund, and 15% from the government of Uganda.

The 272 kilometers currently under construction cover the Malaba-Kampala stretch, including sidings totalling 42 kilometers.

Addressing concerns over compensation for affected persons, Wambulu confirmed that discussions are ongoing, particularly in challenging areas such as swamps, assuring that the process is progressing steadily.

Regarding the contractor’s reliability, he stressed that Yapi Merkezi had delivered successful railway projects in Tanzania and the UK, reinforcing confidence in their capacity to complete Uganda’s SGR on schedule.

Wambulu added that the concrete sleeper factory, with a daily capacity of 150 to 200 sleepers, will remain operational even after the first phase, supporting future railway lines and sidings.

The SGR project is expected to bring faster, safer, and more efficient rail transport between Uganda and its neighbours, while creating opportunities for local businesses and boosting national development.