Uganda has re-submitted a loan request to China for the construction of a 271 km railway that will link Kampala with the Kenyan border. According to Bloomberg, the Ugandan government submitted its loan application to the Export-Import Bank of China in September. The loan will cover 85% of the project cost.
The first loan request delay was due to a late feasibility study that the lender had to undertake but it has since been submitted.
The Ugandan railway project is in line with the agreement that Uganda, Kenya, Rwanda and South Sudan made in 2014. The four countries agreed on a construction of standard gauge railway in their territories as a plan to cut transportation costs.
Uganda acquired about 126 kilometres of the corridor of the Malaba- Kampala SGR. The government plans to complete the route by June 2022.
The Ugandan Standard Gauge Railway aims to link Kenya, Rwanda, Democratic Republic of Congo and South Sudan. The new Standard Gauge Railway aims to replace the old meter gauge railway.