Uganda has reaffirmed its commitment to the SGR project, saying it has no plans to abandon the ambitious rail system.
Uganda Investment Authority yesterday said the major problem has been securing funding for the project, which has delayed its implementation.
UIA executive director Frank Sebbowa said designs for the rail are going on, as the country continues to address environmental and compensation issues for those who will be displaced by the project.
“We are keen on the SGR, only that we haven’t found money. You (Kenya) are lucky you got the money. Your economy is bigger than ours, therefore it can do more things faster than ours,” he said on the sidelines of the UNCTAD talks.
On Thursday, Tanzania said it had secured funding for its own SGR linking it with Uganda and Rwanda.
Why are we worried about Uganda? Let’s get the damn Railway to Malaba and leave it there. All Uganda bound cargo will be transported by Rail to the border then the Ugandans can pick it there with trucks. The railway is meant to benefit Kenya first and foremost. This issue of the media always jumping into inconclusive gossip about our neighbours should stop. WE FUCKING MARCH ON!!!
Compensation starts for
standard railway project
Written by Moses Mugalu
Created: 22 July 2016
Structures
are being
demolished along the route
that the standard gauge
railway is to be built, with
more than 80 per cent of the
land said to be valued, and
some people compensated.
A statement from SGR office
notes that all people living
along the project route
should have vacated by
September this year.
“This is very good progress.
It is very encouraging to see
that project-affected persons
(PAPs) are already moving
and freeing the land; we are
ready with our graders to
start clearing the vacated
land” said Kasingye
Kyamugambi, the
coordinator of the SGR
project, said during a recent
tour of Malaba.
Kasingye advised those that
had been compensated to
use their money well,
emphasizing the need to
build a home. The SGR is a
regional project connecting
Kenya, Uganda, Rwanda and
South Sudan under the
Northern Corridor Integration
Project (NCIP). Uganda is
going to build the eastern
route, first stretching from
Malaba-Tororo up to
Kampala.
Kenya has so far completed
more than 80 per cent of the
Mombasa- Nairobi stretch
while the Naivasha link that
will connect to Malaba on the
Ugandan side is set to begin.
The Uganda SGR line will
constitute a total of 1,724km
for the four routes - Kampala
to Mirama Hills (Rwanda
border), Tororo to Vura in the
Democratic Republic of
Congo, Tororo-Nimule and
Tororo-Kampala.
The project is expected to
have a substantial impact on
the economies of the region
especially around improving
business competitiveness of
the region through a
reduction in transit time,
larger volume carriage and
safety of cargo. [email protected]
By late next year or early 2018 the ugandan side is going to start.also by november they r securing the money from exim bank n people around tororo malaba are forming committee and preparing so as to be employed
We have money in resources. Untapped money-oil reserves in both countries, access to reaping Africans resources, etc. Thats why the Chinese lend . Look at Ghana. What is happening in Kenya and UG already happened in Ghana and Angola.There is no way you can stop it. IMF and western nations do not lend Africa beyond bare survival needs. Only China lends but those are their conditions. We Might as well borrow from them.
No decision has yet to be made on the oil reserves. Two, the final count of the oil reserves is yet to be determined as further exploration continues. Three, the revenue share has been proposed but not yet passed in Senate.
Exim bank of China like all lender’s give loans after considering the current financial status of the country not future projected status. In our case KRA has been collecting 15% more tax every year for the last 13 years. Kenya pays its debt obligations every year, still pays its internal bills, development projects and finances devolution. For that reason we remain attractive for development loans from China, world bank etc. That is even why we didn’t qualify for debt forgiveness as least development countries a decade ago since our debt repayment record has been excellent.
On Ug SGR Exim bank of Kenya has set a condition that it will fund it only after we sign a commercial construction agreement with them to finance the SGR to malaba. The Naivasha-Kisumu-Malaba route is currently under financial preview to determine the cost then the loan agreement will be negotiated.
Oil is just one resource. There are several others. But they are no different than those experienced by our neighbours. No decisions have been made but the contracts were long signed. Reason why increase in revenue collection is some of of these loans have to be serviced. It is a necessity.
No contract has been signed on oil, that there is a lie. Its a national public resource so all relevant authorities have to be involved like parliament counties and made public. The big majors on the resources we export are flowers, horticulture, tea, coffee. Our mining industry is still small to have any impact the economy. So when you mention that our loans are tied to resources I really wonder which resource you are alluding to. Lastly we collect more taxes every year because despite KRA missing its always ambitious target it still collects more revenue each year since 2002. Its always projected to collect 30% more each year but does only 15% and the headlines always read KRA fails to collect its targeted projections. For example last year we collected 1.15 trillion tax but the projected tax collection was 1.3 trillion. The previous year it was 1 trillion. This year courtesy of itax we will definitely reach 1.3 trillion. Loans are then factored after. For example, our budget this financial year is 2.3 trillion. 1.3 trillion collected tax, 1 trillion loan book. On the loan book, 350 billion is debt repayment, 250 billion will be borrowed internally through treasury bills and 400 billion through external borrowing from China-Africa development Bank-world bank etc.
True no contracts on ‘’ paper" .And your numbers on everything are right. But Chinese have an interesting way of doing business. Especially in the developing world. Think about something. Even the Americans with all their might have trouble balancing trade with China to even the odds. By the way I am for borrowing for these big projects.