Approval franted for loan to refurbish Kampala-Malaba Railway
The Parliament has urged the government to expedite the renovation of the Kampala-Malaba metre gauge railway to boost trade and align Uganda with fellow East African Community member states.
This appeal was made after the House unanimously agreed on a report submitted by Hon. John Bosco Ikojo, Chairperson of the Committee on National Economy. The report concerns a proposal for the government to borrow 147.69 million Euros from the African Development Fund and an additional 25.9841 million Euros from Spain’s Corporate Internationalisation Fund.
Hon. Ikojo mentioned that the railway’s overhaul aims to bolster transport links, improve trade competitiveness, and stimulate sectors such as agro-processing, mining, timber, petroleum, and manufacturing. The committee emphasised the need for the government to ensure the Uganda Railways Corporation and railway police are well-equipped to safeguard the rail infrastructure against vandalism and theft.
The report also suggested the government allocate Shs79.93 billion to compensate individuals impacted by the railway’s expansion, ensuring timely project execution and reducing future compensation costs.
Moreover, the committee recommended the government invest in a concrete sleeper production facility. This state-owned plant would produce concrete sleepers essential for the restoration and development of other railway lines nationwide.
During the session held on 23 August 2023, chaired by Deputy Speaker Thomas Tayebwa, multiple MPs stressed the importance of utilising the loan exclusively for its intended purpose, benefiting Ugandans. Hon. Hillary Kiyaga of Mawokota County North remarked on the necessity of adhering to the borrowing objective.
Echoing the report’s sentiment, Hon. Bernard Onen emphasised that the railway would transform the transport sector, given that 70% of inland goods traverse the Eastern part of Uganda. Hon. Jenipher Namuyangu, Minister of State for Bunyoro Affairs, championed the loan, highlighting its potential to revolutionise transportation across various districts.
However, concerns were raised by Hon. Muhammad Muwanga Kivumbi, MP for Butambala County. He questioned the nearly equivalent values of the loan and the government’s counterpart funding, especially since the latter wasn’t budgeted. He also expressed reservations about the loan’s interest rates, urging thorough scrutiny.
Wrapping up the discussion, Hon. Henry Musasizi, Minister of State for Finance, clarified that the funds would also cover feasibility studies, physical planning, asset management, waste practices, traffic evaluations, and environmental assessments, among other initiatives.
