The Ugandan Government is looking for bidders in China for $8bn worth of contracts that will expand the country’s rail network.
The country has inked an agreement with the Chinese Government, under which six firms will have exclusive rights to lead the project.
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The winning bidders will be awarded with engineering, procurement and construction contracts.
The first phase of Uganda’s project includes the construction of a 1,000km-long railway line that will span from Kenya to Rwanda. Extension work on the railway line connecting the northern town of Gulu and South Sudan is expected to begin afterwards.
The new standard gauge railway is also expected to increase the number of cargo shipments being delivered, when compared with the country’s existing rail lines.
A number of East African nations, such as Kenya, Tanzania, Uganda, Rwanda and Burundi, are currently seeking private investment to develop transportation links, in order to reduce trading costs.
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By GlobalDataIn 2013, Kenya started the construction of a railway line linking port city of Mombasa to Nairobi, which will be extended to the Rwandan capital of Kigali, through Uganda.
Tanzania President Jakaya Kikwete said that the government is planning to secure financing for a $4.1bn cross-border railway project, along with Rwanda and Burundi.
