Uganda seeks other backers to fix creaky railway after China delays US$2.2 billion in funds

Beijing held back funding over oil production delays in Uganda, which discovered 6 billion barrels in its west 12 years ago but has yet to produce any

The EU has given US$23.8 million and the railway corporation is hoping international development lenders will pick up the rest of the tab

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A train is seen at the Uganda Railways Corporation headquarters in Kampala, Uganda. Photo: Reuters

Published: 9:53pm, 6 Nov 2019Updated: 4:13am, 7 Nov 2019

Uganda will begin refurbishing its century-old rail network this month to boost bulk cargo transport, after failing to secure US$2.2 billion in Chinese funding for a new standard-gauge line, a senior rail official said on Wednesday.

The rehabilitation will be carried out in phases over several years and cost at least €241 million euros (US$267 million), said Charles Kateeba, managing director of the state-run Uganda Railways Corporation.

The European Union has given the East African nation a grant of €21.5 million and the railway corporation is talking to international development lenders for the rest.

Former colonial power Britain built the metre-gauge, 1,266km (790-mile) network a century ago, mainly to move copper and other commodities.

Uganda’s rail network has been in a state of disrepair for many years. Photo: Reuters

But the network fell into disrepair during years of political upheaval and economic instability.