Uganda gets $300 million loan from African Development Bank to revamp rail network
By Yahaya Idris
The African Development Bank has provided funding to the Ugandan government, which will be utilized to address gaps and challenges, stated Brian Sempebwa, Principal Civil Engineer at the Uganda Railways Corporation.
The funds will support the East African Railway Rehabilitation Support Project, a five-year initiative to procure 100 wagons and 10 locomotives, and re-manufacture several existing locomotives, the speaker noted.
“The loan facility aims to reduce transport costs on the Northern Corridor and improve trade competitiveness in Uganda and the East African region,” he added.
While the project aligns with regional development goals, concerns were raised about inefficient service delivery due to siloed government operations and selective tax exemptions. Further study is underway to assess the broader economic impact of those exemptions, according to the report.
