Parliament Backs Government Loan for Kampala-Malaba Railway Rehabilitation

Parliament has directed the government to expedite the rehabilitation of the Kampala-Malaba meter gauge railway to boost trade and transportation and align the country with fellow East African Community members.

The decision was made based on a report presented by Hon. John Bosco Ikojo, the Chairperson of the Committee on National Economy.

The government is seeking to borrow 147.69 million Euros from the African Development Fund and 25.9841 million Euros from the Corporate Internationalization Fund of Spain for this purpose.

The restoration of the railway aims to improve transport connectivity, enhance trade competitiveness, and support various industries like agro-processing, mining, timber, petroleum, and manufacturing.

The committee recommended that the Uganda Railways Corporation and railway police receive adequate support to safeguard the railway infrastructure from vandalism. Additionally, the report called for a fund of Shs79.93 billion to compensate those affected along the railway corridor, ensuring unimpeded project implementation.

The committee proposed the establishment of a concrete sleeper production plant owned by the government to facilitate the rehabilitation and construction of rail lines across the nation. During deliberations, MPs urged the government to ensure the loan’s proper utilization and adherence to its intended purpose.

Notable legislators, including Hon. Bernard Onen and Hon. Jenipher Namuyangu, highlighted the railway’s potential to transform the transport sector and improve connectivity, particularly in the Eastern region. Concerns were raised about the loan’s terms and the allocated counterpart funding by the government.

In response, Hon. Henry Musasizi, the Minister of State for Finance, detailed that the borrowed funds would also cover feasibility studies, planning, waste management, asset management, and environmental assessments, among other aspects.

 

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