Uganda selects Turkish firm for Malaba-Kampala SGR

Uganda selects Turkish firm for Malaba-Kampala SGR

Construction of the long-awaited multi-billion Standard Gauge Railway (SGR) from the Kenya-Uganda border at Malaba to Kampala is set to begin before the end of the year.

Mr Perez Wamburu, the project coordinator, said the Malaba-Kampala (eastern route) will now be constructed by M/s Yapi Merkezi, a Turkish contractor.

“We are at the tail end of the procurement of Yapi Merkezi. We have discussed the costs and we are at the bottom line of agreeing that we shall have the contract after it has been approved by the Attorney-General. We hope to start before the end of this year,” Mr Wamburu told the media during a briefing at Uganda Media Centre in Kampala. “We have done due diligence on this company and we have seen what they have done in Tanzania.”

The development comes nine years after the project was launched in the East African Community partner states of Uganda, Kenya, South Sudan, Rwanda and Tanzania. The project aims to reduce the high transport costs associated with delays in the transit of goods.

Mr Wamburu said they would soon submit the project to the Ministry of Finance for consideration.

Speaking at the same event, the Minister of State for ICT and National Guidance, Mr Godfrey Kabyanga, revealed how the first Chinese contractor failed, citing unfavourable conditions.

Uganda initially approached China Exim Bank to finance the construction of the Malaba-Kampala SGR line.

“Their conditions were not favourable to us but we’ve gone with the Turkish firm. They are more favourable and we are going to work with them,” Mr Kabyanga said.  “The development of the SGR is on and work will commence as soon as the financing arrangements are sorted so Ugandans should not be sceptical,” he added.

Kenya and Uganda set out to develop an SGR system from Mombasa to Kampala via Nairobi and Kisumu.

Mr Kabyanga said Cabinet met on Monday and received a report from the Ministry of Works on the progress of the SGR project in Uganda.

The other objectives of the approximately 1,500 kilometre railway project are to provide a modern and high-capacity railway network that will reduce transit times, facilitate the movement of goods and people and promote economic growth by providing seamless connectivity within Uganda and neighbouring countries.

In 2013, the leaders of Uganda, Kenya, Tanzania, South Sudan and Rwanda broke ground on the construction of the SGR to connect the member states and boost trade in the region, which is home to more than 300 million people.

So far, only Kenya and Tanzania have made significant progress with the construction lines in their respective countries.

The Malaba-Kampala section to be built is 332 kilometres long.

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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
Tanzania Foreign Investment News
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms

President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.

Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).

Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.

While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.

“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”

Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.

Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.

“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”

ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition

On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.

He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:

At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.

There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.

Source: allafrica.com

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