Editorial

Salvage railway deal before it is too late

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Posted  Wednesday, August 18  2010 at  00:00

There are many primary needs of life that the average Ugandan is yet to experience. Quality health care, adequate and affordable energy, quality education, good governance among others.

Last week, the business community and the transport sector must have been reminded of the urgent need to focus on attaining an efficient transport system for this country.
We do not need to convince anyone about the fact that the fortunes of Uganda’s economy are heavily reliant, among others, on the efficiency of its transport system.
Last week, it seemed like Rift Valley Railways was headed for yet another round of drama just when we thought that a progressive deal was ready to be struck.

Reports that Uganda planned to exclude key branch extensions from RVR’s 25-year concession raised a bit of concern. The extensions to the Uganda railways line that reaches Pakwach and Kasese are meant to bring about economic development by creating access to copper mines and oil exploration in Uganda.

Thankfully Citadel-the majority shareholders in RVR- are said to have successfully lobbied President Museveni and it appears that they have been assured of getting these two lines as part of the concession.

There is renewed hope that Uganda will sign the new concession agreement next week. Earlier reports indicated that ‘powerful’ players had calculated that there will be money to be made by holding on to these two lines and selling them later to the Egyptian based Citadel at a premium.

These shadowy, selfish and narrow-minded characters are not a new phenomenon in this country. They have been able to get away with their shenanigans for too long; all at the expense of millions who have to bear the brunt of poor service delivery among other inefficiencies.

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Uganda should not continue letting these selfish individuals cripple its progress at a time when abundant and potentially liberating economic opportunities are at stake. But we must ensure that the concession avoids previous mistakes and offers us value for money.

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