Uganda has received £ 21.5m (Ush90b) from the European Union to help in reviving the Tororo Gulu railway that has been defunct for over 10 years.
The grant papers were signed Wednesday 17th October between the Finance minister Matia Kasaija and the head of EU Delegation to Uganda Attilio Pacific at the Ministry of Finance offices in Kampala
According to Minister Kasaija the government of Uganda will contribute an additional £13.1m (Ush 57b) to the revival project.
The money will be used to carry out physical rehabilitation of the railway line, supervision, capacity building of the Uganda Railway Corporation workers and compensation of the affected persons
Speaking at the Agreement signing ceremony, H.E Pacifici said the grant was part of EU’s effort to help Uganda develop northern Uganda through the EU Emergency Trust Fund.
“This project is in line with EU’s humanitarian assistance to refugees in host communities. This project will also create a multimodal, safe and efficient transport for cargo and help in reducing the load on Ugandan roads” he said
The Tororo Gulu Railway project will complement the Gulu logistic hub project that is being undertaken by TradeMark East Africa with support from DFID and the government of Uganda.
“These two projects will cause major impact on facilitation of trade by reducing import and export costs and facilitating regional integration but also improve Uganda’s competitiveness in the region by promoting export trade” Pacifici said
According to Kasaija, the railway project is very crucial to the government of Uganda as it endeavours to create alternative means of transporting cargo as than road in its bid to promote export trade.