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Uganda. The government cancels the contract with China for the construction of the railway line, it can be taken over by Turkey

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The government in Kampala terminated a contract to build Uganda’s first long-distance railway worth over $2 billion. An agreement with a Turkish investor is in perspective, the EastAfrican website reported on Friday.

After eight years of waiting for the implementation of the project, the government Uganda terminated a $2.2 billion contract with the China Harbor Engineering Company (CHEC) to build the country’s first long-distance railroad.

As reported by The EastAfrican, the project involves the construction of a 273 km standard gauge (SGR) line from Malaba to Kampala. A line starting from the border crossing between Uganda and Kenya in Malaba, was to cost $2.2 billion.

Kampala, the capital of UgandaReuters Archive

The project did not move forward as the Chinese side questioned Uganda’s ability to implement its part of the agreement. Uganda’s Attorney General effectively terminated an engineering, purchasing and construction contract with CHEC, which assumed financing by China Exim Bank.

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Turkey may build a railway in Uganda

Ugandan President Yoweri Museveni had already instructed his officials to look for alternatives last year. Kampala has already signed a letter of intent with the Turkish company Yapi Merkezi, Ugandan railway project coordinator Perez Wamburu said.

The company is expected to provide a response to the government’s proposal to build the line in the next few weeks.

Kampala also announces the expected change in the project’s financing model. According to EastAfrican, the financing proposal was presented by the British Export Fund (UKEF), which already in September last year signaled its readiness to provide 1.5 billion pounds.

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