East African partner states have welcomed the signing of the deal for the construction of the Standard Gauge Railway by Uganda.
On Monday, the Ugandan government signed a landmark $3 billion (approximately shs10.8 trillion ) contract with Turkish construction firm Yapi Merkezi to build a 272km section of railway, boosting regional trade and economic integration.
The deal, a priority for the Northern Corridor Integration Projects (NCIP) was signed in Kampala by Mr. Waiswa Bageya, the Permanent Secretary at the Ministry of Works and Transport and Yapı Merkezi Holdings Vice Chairman Erdem Arıoğlu.
Speaking on Tuesday during the ongoing regional cluster meeting of finance and private sector participation under the Northern Corridor Integration Projects at Serena Hotel, Kigo, Samuel Yanga Mikaya the head of the South Sudan delegation described the signing of the SGR agreement as a key milestone in the development of the region but also unlocking its potential.
“The development of the Standard Gauge Railway will be critical for increasing the efficiency and competitiveness of our regional transport system. Being a landlocked country, South Sudan takes special interest in this project as it will allow movement of our people and goods across the region and to the world,” Mikaya said.
The head of the South Sudan however said his country would have wished that in the agreement signed on Monday, a link between Uganda and Juba was included, but said was optimistic the project will reach the country soon.
“The Republic of South Sudan looks forward to being part and parcel of the project and equally all the other projects and the Northern Corridor Integration Project.”
He said South Sudan lags behind in implementation of some projects of the NCIP due to lack of the regulatory framework necessary to implement some of these projects.
Rwanda’s Ambassador to Uganda, Joseph Rutabana congratulated Uganda upon the milestone of signing the SGR agreement which is part of the Northern Corridor Integration Project which will link Kigali to Malaba, noting that it will link the region and open it up to development.
“I would like to reaffirm the commitment and readiness of the Republic of Rwanda to collaborate with Northern Corridor Integration Project member states on this joint project,” Rutabana said.
The head of the Kenyan delegation, Elizabeth Shungula said the signing of the agreement between Uganda and the Turkish contract shows commitment to enhance transport of goods along the Northern Corridor.
“The inking of the deal for the development of the SGR from Malaba to Kampala also a demonstration of your commitment to enhance integration of the Northern Corridor partner states,”Shungula said.
On Monday, Ambassador Richard Kabonero, the National Coordinator for the Northern Corridor Integration Projects (NCIPs), hailed the agreement as a crucial step towards regional cooperation and economic transformation.
“The SGR project requires private investment to unlock its full potential. The contract demonstrates the commitment to securing funding and leveraging private sector expertise,” Kabonero said.
The Northern Corridor is transit route to link the Kenyan Port of Mombasa to the hinterland of member states of Rwanda, Uganda and South Sudan.