The fate of the proposed Naivasha – Kisumu -Malaba Standard Gauge Railway will be decided once Uganda and China’s Exim Bank reach a financial agreement according to Kasingye Kyamugambi, Project Coordinator at Standard Gauge Railway Uganda.
“85% of $2.3 billion is what Uganda is borrowing from Exim Bank,” said Kasingye.
“We had projected to have financial closure by October 2016 but our financiers still need some information which we must avail,” he added.
Kenya will only start the Naivasha-Kisumu-Malaba route of the SGR when Uganda & China’s Exim bank have reached financial closure – @Head_SGR
— Mark Keith Muhumuza (@mumakeith) February 6, 2017
Doesn’t make econ sense for Uganda to start SGR construction if Kenya has not started Naivasha-Malaba. Nobody will give you money- @Head_SGR
— Mark Keith Muhumuza (@mumakeith) February 6, 2017
The Project Coordinator expressed optimism that Uganda will finish the its SGR project in time for connection with Kenyan counterparts.
Uganda-Kenya today agreed on SGR financing & constrn. We agreed to a synchronized constrn of the railway from Naivasha to Kla in 42 months pic.twitter.com/1xaxL8i5Vf
— SG Railway Uganda (@SGR_Uganda) February 2, 2017
Kasingye says the two countries are set to discuss with the bank for talks on how the funding synchronization timescale for construction of the 1 435-mm gauge railway.
On 27th Feb 2017, 4 ministers from Kenya & Uganda will go to China’s Exim Bank to express further commitment on the project @Head_SGR
— Mark Keith Muhumuza (@mumakeith) February 6, 2017
Early last year, Kenya and the China Communications Construction Company (CCCC signed an agreement for the construction of the Naivasha-Malaba Standard Gauge Railway line under the Kenya SGR Developments Project valued at Sh549 billion (USD 5.4 billion).
Kenya, Uganda, Rwanda and South Sudan have signed and ratified a Protocol for the development of an SGR connecting the port of Mombasa to Kampala, Kigali and Juba.
The construction on the Mombasa to Nairobi section is expected to be complete by June this year. The single-track standard gauge railway between Mombasa and Nairobi will have a route length of 472km and a total length of 609km. It will run through the counties of Mombasa, Kilifi, Kwale, Taita-Taveta, Makueni, Kajiado, Machakos and Nairobi.
Work on the second phase 2A of the 120-kilometre line that will connect Nairobi to Naivasha will begin in January. This will cost Sh153 billion ($1.5 billion).
The Second phase is projected to take 42 months.
Kenya has already received the first Chinese-built locomotives and rolling stock for revenue operations.
Related: First Batch of SGR Freight Locomotives Docks in Mombasa