In what is bound to tighten China’s grip on the region’s major infrastructure projects in East Africa, Kenya, Uganda and Rwanda have agreed to approach China to fund and build a $13.4-billion standard-gauge railway line connecting the three countries.
The decision to work with China and lock out other interested firms, particularly from the West, was arrived during a meeting of the three countries’ Presidents in Uganda in June.
During the meeting, Uganda’s President Yoweri Museveni, Kenya’s Uhuru Kenyatta and Rwanda’s Paul Kagame committed to investing in critical infrastructures to enhance trade in the region and deepen integration, with the railway being listed as a priority project.
“As partners in the project, we are undertaking bilateral financing negotiations with the govern- ment of China to ensure the project is implemented on schedule,” said Kenya Transport and Infrastructure Cabinet Secretary Michael Kamau.
He added that construction of the standard- gauge railway line, which would run from Mombasa, in Kenya, to Kampala, in Uganda, and onwards to Kigali, in Rwanda, with spur lines, was expected to start in November and to be completed in early 2018. The line will cover a distance of about 3 000 km and each member State will be obliged to ensure implementation of the project within its borders within the stipulated timeframe.
“All countries will commit to establishing a railway development fund and earmark a sufficient budgetary allocation to the [project],” said Kamau.
Last month, Kenya put out a tender for a consultant to design, review and supervise construction of its section – running from Mombasa to the Ugandan border – which will cost $5.2-billion. The Kenyan section will cover a distance of 1 300 km.
Construction of the railway line is seen as critical in enhancing trade in the East African region and in propelling economic growth. Both Uganda and Rwanda largely depend on the Kenyan Port of Mombasa for their exports and imports.
The high-capacity line, which will be capable of attaining speeds of 180 k/h and 120 k/h for passengers and freight respectively, is expected to ease the pressure on road transport, which accounts for over 90% of cargo transportation in the region.
Implementation of the project comes soon after Kenya and Uganda said they would put Rift Valley Railways (RVR), the private company operating the existing relic railway network, under close scrutiny owing to continuous underperformance.
The two countries announced they would convene a railway commission monthly to review RVR’s performance. RVR has a 25-year concession agreement with Kenya and Uganda to manage the railway network in the two countries.
“Both countries express concern over RVR, especially looking at its entire performance. We have noted that the cargo handled by RVR has been declining,” said Kamau.
Last year, RVR managed to transport a mere 1.9-million tons of cargo, compared with the about 12-million tons arriving at the Port of Mombasa.