https://www.engineeringnews.co.za
Africa|Construction|Engineering|Export|PROJECT|rail|Road|transport
Africa|Construction|Engineering|Export|PROJECT|rail|Road|transport
africa|construction|engineering|export|project|rail|road|transport

Uganda to ask Turkish firm to secure rail deal financing

26th January 2023

By: Reuters

  

Font size: - +

Uganda will ask Turkish firm Yapi Merkezi to secure financing for a $2.2 billion rail link to the Kenyan port of Mombasa and is eyeing export credit agencies as potential sources, a senior official told Reuters.

The Turkish construction company had previously confirmed a memorandum of understanding was signed with the Ugandan government for a potential deal to construct a 273 km (170 miles) railway project linking the capital Kampala to Kenya's own rail to access the Indian Ocean seaport.

Yapi Merkezi did not immediately respond to a request for comment on Wednesday.

Details of some of the ongoing negotiations for a potential binding contract, however, have not been previously disclosed.

"We want Yapi to carry the burden of helping the government to procure financing from lenders," Perez Wamburu, who heads the standard gauge railway project in the Ministry of Works and Transport, told Reuters.

"We want the agreement we sign with them to include that component in addition to engineering and construction ... we want them to approach export credit agencies some of which have already shown interest."

Uganda, a landlocked nation of 45 million in east Africa, is banking on the railway to boost the speed and lower the cost of transporting its exports. It currently relies on costly and slow road links and a century-old narrow gauge rail line built by Britain to ship its exports.

Uganda started negotiations with Yapi Merkezi in December after the country terminated a 2015 deal with Chinese firm China Harbour and Engineering Company (CHEC) for the project.

Ugandan officials were frustrated with the CHEC agreement after China failed to provide the agreed financing.

Wamburu said Uganda has already given Yapi Merkezi tender papers and hoped to finish negotiations and sign a binding contract so construction can begin in about seven months.

He expected work with Yapi Merkezi to move faster.

"Yapi is not starting on virgin land, what is happening is merely reviewing of (the) project," he said.

Edited by Reuters

Comments

Latest News

President Cyril Ramaphosa
Ramaphosa signs law allowing savers access to pension funds
Updated 2 hours 46 minutes ago By: Reuters

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Flameblock
Flameblock

FlameBlock is a proudly South African company that engineers, manufactures and supplies fire intumescent and retardant products to the fire...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Economic growth a top priority for GNU
Economic growth a top priority for GNU
19th July 2024 By: Creamer Media Reporter
Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.418 0.476s - 171pq - 2rq
Subscribe Now