📋 Tender Overview
Project Summary
Approval Date 30 Nov 2022
Planned Completion Date 31 Dec 2027
Last Disbursement Planned Date 31 Dec 2027
Sovereign / Non-Sovereign Sovereign
Sector Transport
DAC Sector Code 21012
Environmental Category 1
Commitment U.A 221,579,225.16
Status Approved
Project General Description
The proposed Kampala-Malaba Meter-Gauge-Railway (MGR) is part of the multi-modal Northern Corridor route which includes road transport from Mombasa to landlocked Uganda and further afield to other hinterland countries of Rwanda, Burundi, South Sudan and Eastern DR Congo. The corridor also has maritime links with Lake Victoria inland waterways which provides alternative transport modes for riparian countries of Kenya, Uganda and Tanzania. The project will improve maritime transportation on Lake Victoria through the acquisition of new wagon ferries and construction of spurs to Port Bell and Jinja port. In addition, the corridor includes international airports at Kisumu in Kenya and Entebbe in Uganda. The development of this transport corridor will promote trade, spur industrial development, create jobs, stimulate growth and enhance regional integration in Eastern Africa. The overall cost estimate of the Project is UA301.36 million. The Bank will contribute UA219.70 million (72.9%) net of taxes.
Project Objectives
The development objective of the Project is to improve rail transport services on the Northern Corridor and to lower transportation costs to enhance trade competitiveness for Uganda and the EAC region. The project will add to the transport infrastructure stock in the EAC region and in particular Uganda to support production in agro-processing, mining, timber, petroleum, and manufacturing industries.
Beneficiaries
The total number of beneficiaries who will directly benefit from the Project through transportation of goods, passenger travel, and jobs (direct and indirect) is estimated to be around 1.2 million people, with about 40% being women. Travel within the Greater Kampala Metropolitan Area (GKMA) using small buses is time consuming because of congestion on the roads. However, with improved railway services, travel time for those who wish to use the train will be reduce by more than half the time spent travelling using road transport especially during peak hours. Similarly, most large manufacturing companies, and small and medium-scale entrepreneurs expressed interest to use rail transport, however, they are not able to use rail because of poor infrastructure and most of the time because of nonavailability of locomotives and wagons to carry their goods (imports and exports). The entrepreneurs at Mukono Industrial Park in Kampala welcomed the Project and looked forward to working with URC, once the rail is revamped.
Participating Organization
Funding
African Development Bank
Funding
African Development Fund
