Uganda’s loan request to build a railway rejected

Uganda’s loan request to build a railway rejected

China’s Exim Bank has once again rejected Uganda’s fresh application for a standard gauge railway loan, indicating a longer wait for Kampala’s dream of realizing a modern transit system.

Exim Bank, in a response to Uganda’s application for financing re-submitted in September last year, insists there must be clarification on whether Kenya’s SGR will terminate at the border to guarantee smooth connectivity.

The Chinese responded to Kampala’s request in January this year.

Uganda re-submitted the loan application after changing the scope of works and revising the cost for the 273km project reduced by $26 million to $2.269 billion.

“The China Exim Bank has responded and sought clarification on the connectivity of Uganda SGR and Kenya SGR since Kenya has slowed down on the progress. Discussions are going on at a high level between Kenya and Uganda to agree on new timelines,” project coordinator, Mr. Perez Wamburu said.

Diplomatic ties
Kenya’s High Commissioner to Uganda, Kiema Kilonzo, said Nairobi remains committed to the project.

Source: DM

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