Uganda will borrow 173m Euros (approx. Shs690, 941, 890, 480) to fast-track the rehabilitation of the Kampala – Malaba meter gauge railway. The infrastructure, officials from the finance ministry told Members of Parliament (MPs), will enhance trade and transport.

While approving the request, the convinced MPs agreed with the officials. The legislators acknowledged that the railway line will place Uganda in tandem with other East African Community partner states.

With thumbs up from Parliament’s Committee on National Economy, government will now borrow up to 147.69 million Euros from the African Development Fund and 25.9841 million Euros from the Corporate Internationalisation Fund of Spain.

The Committee chairperson John Bosco Ikojo said that the refurbishment of the railway line targets to increase transport interconnectivity, enhance trade competitiveness, and support production in agro-processing, mining, timber, petroleum and manufacturing industries.

Ikojo said government should facilitate the Uganda Railways Corporation and railway police adequately so that they can patrol and protect the railway infrastructure from vandalism and theft.

The Committee report that was adopted by the MPs implored the government to provide Shs79.93 billion to compensate affected persons within the railway corridor so that land is freed from encroachers.  

The Deputy Speaker, Thomas Tayebwa, who chaired the parliamentary sitting implored government to ensure that the loan is utilized appropriately for the benefit of Ugandans.

“We come with the appetite of supporting loans and yet they get diverted to other things that are not essential. How do we stick to the reason for borrowing?” asked Mawokota County North MP, Hillary Kiyaga. 

Bernard Onen, the Eastern Region Youth MP, said the will be a game changer for the transport sector because 70 per cent of inland goods being transported through the Eastern part of the country.

The Minister of State for Finance in charge of General Duties, Henry Musasizi, informed the House that the money will also be used for feasibility studies, physical planning, resource revenue improvement, waste management practices, asset management, and traffic and environmental assessment among others.