The Government of Uganda has signed a €2.7 billion contract with Turkish firm Yapi Merkezi to construct the Eastern Route of the Standard Gauge Railway (SGR) between Tororo and Kampala. The 272-kilometer railway, expected to take 48 months to complete, will boost trade and connectivity with Kenya.
At the contract signing on October 14, 2024, Minister of Works and Transport, Gen. Katumba Wamala, emphasized the importance of local participation, urging Yapi Merkezi to adhere to the government’s Local Content Strategy, reserving 40% of the contract value for Ugandan suppliers. "Be transparent in all matters of local content to avoid disputes that can hamper project delivery," Wamala said.
The project, financed through domestic resources and development partners, will follow an EPC/T (Engineering, Procurement, and Construction Turnkey) model to ensure timely completion and risk management, according to Waiswa Bageya, Permanent Secretary at the Ministry of Works and Transport.
Yapi Merkezi Vice Chairman, Dr. Erdem Arioglu, praised the agreement, calling it a "new chapter" in Uganda-Turkey relations. Despite previous delays, 54% of the Right of Way for the railway between Malaba and Kampala has already been secured.
Uganda's Standard Gauge Railway initiative is part of a broader plan to develop 1,700 kilometers of railway in phases. Following the Eastern Route, other lines will include the Northern Line, extending from Tororo to Gulu and Nimule on the South Sudan border (465km), with a spur to Pakwach and Vurra at the DR Congo border (297km). The Western Line will connect Kampala to Bihanga, Kasese, and Mpondwe on the DR Congo border (383km), with a spur to Hima Cement. Lastly, the Southern Line will stretch from Bihanga to Mirama Hills on the Rwanda border (280km), with a spur to Muko.
This expansive infrastructure project aims to position Uganda as a regional trade hub, improving connectivity with neighboring countries while boosting economic growth through local job creation and trade facilitation.
