Gov’t to re-negotiate railway contract

The parliamentary committee on infrastructure has government to re-negotiate the contract for the Construction contract of standard gauge railway with China Harbor Engineering Company Ltd to reduce on the costs to meet by Uganda.

In a report tabled before parliament by a committee that benchmarked in Ethiopia, it was discovered that the cost of constructing similar railway in Uganda is far way expensive.

According to the committee chairman Denis Sabiiti , Ethiopia spent 3.4 billion dollars to construct 669 km with 5 million dollar par track kilometer , yet  Uganda is going to use 2.3 billion dollars to construct 273 kilometers at 8.4 million dollars per track kilometers.

He said that Uganda must re-consider this contract as soon as possible before losing these colossal sums of money.