Uganda’s railway deal with a Chinese firm, China Harbour and Engineering Company Ltd (CHECO), has been brought to a close. The deal, was to build an estimated recognised railway that connects the country to Kenya.
The project was cancelled because of China’s unwillingness to fund the project which was revealed by a senior official in Uganda’s Ministry of Works stating the Chinese firm’s reluctance in supporting the project. As a result of this, Uganda decided to cut off the 8 year relationship writing to the Chinese firm in the last month of the previous year notifying them of the cancellation of the contract.
The railway was was structured to link up Uganda to Kenya, connecting Kenya’s standard rail through to the Indian Ocean seaport at Mombasa. The project’s estimation was $2.2 billion which was thought could be given instead to Yapi Merkezi, a Turkish firm and according to Uganda’s Ministry of Works, there’s no contract with the other party yet but there is a written business agreement.
The decision was spurred as a result of the Turkish company’s appealing job done in Tanzania. This was known by Uganda’s officials on their tour to Tanzania on seeing the Tanzania’s 1,219 kilometers SGR.
Just like many sub-saharan African countries, Uganda has had a firm relationship with China and there had been partnership dealings between Uganda and China ranging from railway projects to oil and gas projects.
During a press conference in Beijing, Wang Wenbin, Chinese Foreign Ministry Spokesman revealed the intensity of their relationship with Uganda adding that the practical cooperation between the two parties will emphasize the mutual benefit of China-Africa.
