EU Gives Ugx 120b to Refurbish Tororo – Gulu Railway Line

The grant is to support promotion of rural development as well as climate smart agriculture, particularly in Northern Uganda.
Rift Valley Railways Kampala Station

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The European Union will fund the rehabilitation of the Tororo -Gulu railway line.

Cedric Merel, the Head of cooperation of the EU delegation in Uganda says the project will cost 120 Billion Shillings.  

Cedric says EU will partner with the government and other players in the railway industry to undertake the rehabilitation. According to Cedric, the tender for the rehabilitation will be advertised in October. 

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Cedric, says that the work will make the stretch more secure for international trade between Uganda, the Democratic Republic of Congo, Kenya, and South Sudan.

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Frederick Dickens Odongo, the LCV Chairperson Dokolo district, says some sections of the railway line were vandalized by scrap dealers. He said refurbishing and operationalizing the railway will help to revitalize the development of the region.

“We are encouraging people to venture into agribusiness by cultivating Maize, Beans, and Cotton on large scale. And by nature, these are bulky produce to transport to the market by road. Therefore, when the railway line is reopened to the public, we believe it will facilitate speedy development” he said.  

Last year, the government terminated the concession of Rift Valley Railway (RVR) for running the meter gauge railway line after it failed to rehabilitate the Tororo – Pakwach line amongst others. The Concession was initially scheduled to run till 2030. 

Finance Minister Matia Kassaija ordered the company owned by Cairo based Qalaa Holdings to hand over all railway property to Uganda Railway Corporation.

He also demanded that RVR's guarantor, UAP Insurance, pays Uganda Railway Corporation 10.6 billion shillings as performance bond.

A performance bond is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor.

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