Uganda Refurbishes Century-Old Rail Network After China Delays Funding

Uganda will begin revamping its century-old rail network this month to boost bulk cargo transportation, a senior rail official announced on Wednesday . The development comes days after failing to secure $2.2 billion in Chinese funding for a new standard-gauge line.

After receiving a grant 21.5 million Euros from the European Union and the railway corporation is seeking financial assistance from international development lenders for the rest.

Britain, the former colonial power built the meter-gauge, 1,266 km (790 mile) network a century ago and its main aim was to move copper and other commodities.

However, the network fell into disrepair during the political upheaval and economic instability era. Currently, dilapidated engines hiss and clatter as they trundle between crumbling platforms, pulling drab carriages behind them.

“Due to lack of maintenance over the years, most of the network is now in disuse,” said Kateeba. “We shall replace some areas which have been either removed by vandals or are badly worn.”

When China did not offer funding for the Ugandan section of the Standard Gauge Railway (SGR) regional project, bulk cargo transporters were disappointed as they have been eager for cheaper transport.

Negotiations between the Ugandan authorities and China have been dragging on for more than five years, hoping for funds to construct the country’s own SGR branch. Kateeba spoke on the matter and said several factors, including Uganda’s delayed oil production, delayed a credit deal.

More than 12 years ago in the west, Uganda discovered 6 billion barrels worth of crude oil however; disagreements between the government and oil firms over tax and development strategy have repeatedly delayed production.

Kateeba said that, If oil production had begun, economic growth would mean “we would be able to really afford the credit.”

“China is not giving us charity,” he said.

“Now China is examining whether repayments could be adjusted, costs lowered or the implementation period pushed back,” he said.