OFFICIALS from the Islamic Development Bank (IsDB) visited Uganda last month to discuss a proposed contribution of €405m towards building the first phase of the country’s Standard Gauge Railway (SGR) programme, a new 272km electrified line running from the capital Kampala to Malaba on the border with Kenya.
IsDB, located in Jeddah, Saudi Arabia, has proposed a concessional loan and co-financing agreement for the €2.7bn project, where preparatory work is now underway following the signing of a construction contract with Yapı Merkezi in October 2024. The government of Uganda has committed €75m to fund early work, including building construction camps, a sleeper factory and batching plants that are due for completion by next month.
After officials from the SGR Project Management Unit provided a briefing on progress made to date, the IsDB Mission undertook a series of site visits including the construction camp at Madhigandere in Iganga district where work is 70% complete.
According to SGR Project Coordinator, Perez Wamburu, progress is also being made with property acquisition for the new line in the 12 districts from Kampala to Malaba. The compensation process for those affected entered its final phase in Kampala district in December.
The eastern Kampala - Malaba line is the first phase of Uganda’s SGR development programme which aims to build 1724km of new standard-gauge railway. This is expected to make landlocked Uganda more attractive for investors by lowering freight transport costs and providing a more reliable and environmentally-friendly alternative to road.
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