Govt sorry about SGR project delays -transport minister

The state minister for transport Fredrick Byamukama in (yellow shirt) with a delegation from SGR at river Malaba at the border of Uganda and Kenya commonly known as SGR kilometer zero on April 4, 2023. PHOTO/ JOSEPH OMOLLO

What you need to know:

  • In 2015, China Harbour Engineering Company (CHEC) signed a contract with Uganda to build the first phase of the standard gauge railway, a 273 km line from Malaba to Kampala. But the project has never taken off.
  • The state minister for transport Fredrick Byamukama dismissed claims that the government has given up on the project, saying a lot of money has already been injected into the project such as securing the right of way

The state minister for transport Fred Byamukama Tuesday tendered the government’s apology for   delays in kick starting the construction of the $2.2 billion Standard Gauge Railway (SGR) project.

The minister made the apology during a meeting with leaders of Tororo District.
The leaders noted that due to delays, some of the project affected persons who even received compensation have returned to the demarcated project land, which may result in mass evictions in future. 

In 2015, China Harbour Engineering Company (CHEC) signed a contract with Uganda to build the first phase of the standard gauge railway, a 273 km line from Malaba to Kampala. But the project has never taken off.
Mr Byamukama, however, said the government is in the final stages of signing a Memorandum of Understanding (MOU) with Yapi Merkezi, a Turkish based firm, to take over from CHEC whose memorandum of understanding was cancelled after dragging the project for the last eight years.

"Government has concluded the process of signing Memorandum of Understanding with the Turkish firm Yapi Merkezi and the firm has already made submissions of its response that is guiding government's request for a construction proposal paving way for procurement to enable commencement of the construction works to be commissioned in next financial year," Mr Byamukama said.
He also dismissed claims that the government has given up on the project, saying a lot of money has already been injected into the project such as securing the right of way.

Mr Byamukama has also urged the locals to continue engaging project affected persons who are still resisting to receive compensation to rethink their decision to pave way for the construction works, expected to start in the next financial year.
According to Ms Lillian Tumukunde, the deputy project coordinator for the SGR project, 1,582 of the 1753 project affected persons have been compensated. The project will affect 52 villages in Tororo District.
She said the pending compensation will cost Shs8 billion for the remaining 171 affected persons and institutions. Those not yet compensated have appealed for re-evaluation of their properties on grounds that they were undervalued.

"We can say we have done compensation up to 95% with the few isolated cases remaining. However we have their money to be cashed to them anytime they say they want. We only have challenges with the Kasoli Housing Estate where the bank (Development Finance Company of Uganda Bank Limited-DFCU) wants huge amounts of money and the tenants also want compensation for the same houses and this has pushed us in the corner," she said.
Ms Tumukunde also highlighted the conflict between Ministry of Health where it wants to receive compensation for the affected Kasoli Health Centre II, Tororo Hospital medical quarters and Ministry of Education and Sports for the affected Morukatipe View Primary in Tororo Town.

 She said compensation has delayed because the line ministries and local governments are demanding for payment.
However the local leaders during the meeting appealed to the Central government to intervene in the conflict between the Ministries and the local governments since the affected institutions are under local governments.

The Resident District Commissioner of Tororo, Mr Nickson Owole,  said: “Minister,  I wish to submit that whereas Ministries supervise the local governments, we also need to honour decentralisation arrangements since the affected institutions are under local governments otherwise it will look like cheating [if the ministries receive the compensation]."