DevelopmentFinance & BankingNational

MPs endorse loan to overhaul Kampala-Malaba railway line

KAMPALA – Members of Parliament have urged government to fast-track the rehabilitation of the Kampala-Malaba metre gauge railway line to enhance trade and transport and also place the country in tandem with her sister East African Community partner states.

The call follows the unanimous adoption by the House of the report presented by the chairperson of parliament’s Committee on National Economy, John Bosco Ikojo on the proposal by government to borrow up to EUR147.69 million from the African Development Fund and EUR 25.9841mln from the Corporate Internationalisation Fund of Spain.

Ikojo said that the refurbishment of the railway line targets to increase transport interconnectivity, enhance trade competitiveness, support production in agro-processing, mining, timber, petroleum and manufacturing industries.

According to the committee, government should facilitate the Uganda Railways Corporation and railway police adequately, so that they are able to patrol and protect the railway infrastructure from vandalism and theft.

The report also implored government to provide Shs 79.93 billion to compensate affected persons within the railway corridor so that the much required land is freed from encroachers to allow for timely project implementation and curtailed expenses of future compensation.

The committee further guided that government invests in a concrete sleeper production plant, fully equipped and owned by the Government of Uganda to facilitate production of concrete sleepers for rehabilitation and construction for other rail lines across the country.

Hon. Hillary Kiyaga cautioned government against diverting the loan to other none essentials

The House, chaired by Deputy Speaker Thomas Tayebwa on Wednesday deliberated on the recommendations of the report with several MPs calling on government to ensure that the loan is utilised appropriately for the benefit of Ugandans.

“We come with the appetite of supporting loans and yet they get diverted to other things that are not essential.  How do we stick to the reason for borrowing?” asked Mawokota County North MP, Hillary Kiyaga.

Bernard Onen, the eastern region youth representative in parliament argued that with 70 percent of inland goods being transported through the Eastern part of the country, the establishment of the railway line would be a game changer for the transport sector.

The Minister of State for Bunyoro Affairs, Jennipher Namuyangu, appealed to the House to approve the loan, saying that it would change the transport sector while connecting many districts.

However, the Member of Parliament for Butambala County, Muhammad Muwanga Kivumbi, queried why the money for counterpart funding by government was almost the same as the money to be borrowed yet the money was not budgeted for.

Kivumbi expressed concern that the interest for the loan was too high and encouraged the House to scrutinise the loan request properly.

The Minister of State for Finance in charge of General Duties, Henry Musasizi, informed the House that the money will also be used for feasibility studies, physical planning, resource revenue improvement, waste management practices, asset management, traffic and environmental assessment among others.

https://thecooperator.news/afdb-commits-over-shs-1-1trn-to-renovate-kampala-malaba-railway-line/

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