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Africa Business News

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Uganda Receives $23.8M to Bring Back Tororo-Gulu Railway

October 26, 2018

The European Union just awarded the Government of Uganda a grant of $23.8 million to rebuild a once very important 375 kilometer stretch of railway known as the Tororo-Gulu line.

The railway shut down operations over ten years ago. Up until that time, it was run by privately-held Rift Valley Railways (RVR), primarily for cargo transport.

According to Ambassador Attilio Pacifici, the head of the EU’s delegation to Uganda, the funds will cover project management costs, the actual physical rebuilding of the track system, and compensation of those regionally affected by the project. Some of the monies will also be used for training and development of individuals at the Uganda Railway Corporation, to help them manage and maintain the line in the future.

Uganda will contribute to the project by funding another $15.1 million. Its portion will help build a Gulu logistics hub. That will be constructed in partnership with the Uganda government and DFID Trademark East Africa, to support trade through cost-reductions in expenses for imports and exports.

In commenting on the new grant, Ambassador Pacifici said that, “With this project, the EU continues to support Uganda’s economy through the promotion of a multi modal, safe and efficient transport sector. We will in particular support the efforts of government to shift cargo from roads to more environmentally friendly-or greener- transport modes such as railways and waterways.”

The Ambassador also noted that this project dovetails well with other EU activities helping Uganda develop northern Uganda.

Copyright: North America Procurement Council Inc., PBC