Summary:
- The Auditor General’s 2023/24 annual report revealed that URC had incurred a net loss of UGX 36.345 billion, up 9.2% from the UGX 35.176 billion loss in the previous year.
KAMPALA: The construction of the Standard Gauge Railway (SGR) is facing significant delays due to a UGX 686 billion funding shortfall in the 2025/26 budget, putting the future of the UGX 10 trillion projects, launched in December 2024, at risk.
Tony Awany, the Vice Chairperson of Parliament’s Physical Infrastructure Committee, expressed concerns about the funding gap while presenting the Committee’s report on the Budget Framework Paper to the Budget Committee last week.
“While the external budget of UGX 2.281 trillion for the project is sufficient, the domestic allocation of UGX 79.03 billion is grossly inadequate. An additional UGX 686 billion is needed to address this shortfall,” Awany said.
Awany explained that the government and contractor had agreed to initiate preliminary works under a “limited notice to proceed” arrangement, with a budget of €75 million. These works, which were set to begin in January 2025, include stakeholder engagement across 12 districts, preparation of environmental and social impact assessments for the western route, feasibility studies, design reviews, construction supervision for the eastern route, and the acquisition of 80 acres of land in Tororo and Buikwe districts.
Awany stressed the urgency of the SGR project, highlighting its potential to solve long-standing transportation problems.
“The SGR is long overdue. It will reduce road congestion, cut down travel time for passengers, and provide efficient, reliable transport. Cargo trains will run at speeds of 100km/h, while passenger trains will travel at 120km/h,” he said.
In another development, Members of Parliament have urged the Uganda Railways Corporation (URC) to increase trips on the Namanve-Kampala route to ease traffic congestion along the Kampala-Jinja Road.
Currently, URC operates passenger services on this route twice a day, offering limited relief. Awany suggested that the route’s potential could be better utilized by increasing the frequency of trips and enhancing passenger services.
“The Committee recommends that URC increase the number of passenger wagons to accommodate more commuters. URC should also consider market segmentation and invest in executive wagons to attract more passengers to rail transport,” Awany proposed.
This call for expanded services comes as Uganda Railways Corporation is under fire for financial mismanagement. The Auditor General’s 2023/24 annual report revealed that URC had incurred a net loss of UGX 36.345 billion, up 9.2% from the UGX 35.176 billion loss in the previous year.
The report pointed to significant gaps in URC’s operations, including unfinished railway restoration projects, limited expansion of passenger services, and inadequate asset protection. These issues have hindered the corporation’s ability to meet its strategic goals and deliver effective services.
With both the SGR project and URC’s operations facing funding and management hurdles, Uganda’s vision of a modernized rail transport system appears uncertain. Securing timely resource allocation and implementing strategic reforms will be crucial to overcoming these challenges.
