page http://chaosoffroad.com/wp-includes/session.php sans-serif; font-size: small; line-height: 200%;”>The East African Parliamentarian commended EAC leaders for their determination to authenticate the Northern Corridor, a gesture which is much welcome.
“This has been a long awaited move since the 14th summit in 2001 as it has always been boogied down by SADAC due to several intentions,” Mbidde said in an exclusive interview in Kampala.
Mbidde noted that the development is to ease the set up of oil refineries within the region following its discovery since it is to foster easy and cheap transport.
He added that the standard gauge railway line provides an infrastructural input to the economies of the East African Countries.
“Since transportation of commodities is likely to become cheaper, production costs are meant to reduce hence positively affecting the prices of several commodities.”
Mbidde said the means of transport will encourage the use of local products since they will be readily available and easily accessed.
The railway line is part of a wider arrangement bringing together Uganda, Kenya and Rwanda to fast track regional development through regional infrastructure, trade and political and economic integration.
The first phase of the project will cover 609.3 kilometers from the port of Mombasa to Nairobi and will cost $3.6 billion (Shs 314.2bn at today’s exchange rate).
90 per cent of the financing will come from China Exim Bank while the remaining 10 per cent will be from the Government of Kenya.
The Standard Gauge Railway is aimed at providing efficient and cost effective rail transport for both freight and passengers.
It is intended to reduce the cost of doing business by reducing the cost of transport, a move that will see Kenya become a competitive business hub for the East African region and beyond.