Uganda Seeks Funding for Ambitious Railway Project
Uganda is negotiating with development finance institutions and credit export agencies to fund 85% of a major railway project amid concerns over its public debt. Turkey's Yapi Merkezi won the contract to build the railway. The project aims to connect Uganda with Kenya, promoting regional trade.
- Country:
- Uganda
Uganda is engaging in discussions with development finance institutions and export credit agencies to secure debt financing for 85% of its proposed railway project, according to senior officials.
The move comes amid mounting concerns over the country's rising public debt. Turkish firm, Yapi Merkezi, was awarded the contract to construct the €2.7 billion railway last October, and preliminary work has already commenced.
Perez Wamburu, the head of the railway construction project, noted that the debt financing talks are at an advanced stage and approaching conclusion. The potential financiers include the OPEC Fund for International Development, the African Development Bank, and the Islamic Development Bank, among others. The Ugandan government plans to cover 15% of the costs and has already allocated $75 million for the project's initial phases. The 272-kilometre railway will connect Uganda's capital Kampala with Kenya's railway at the Malaba border.
(With inputs from agencies.)
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