President Museveni holds meeting with Chinese on upgrading Uganda's railway to standard gauge

Wednesday 22nd January 2014
Bbosa Tonny

State House Uganda - NewsState House Uganda - News President Yoweri Museveni has this afternoon held a meeting with China Harbour Engineering Company (CHEC), the 5th largest infrastructure developers in China, at State House Entebbe.

The purpose of the meeting was to update the President on progress towards construction and upgrading Uganda's railway to standard gauge.

The President said that the China Harbour Engineering Company Ltd will be one of the two Construction Companies Government of Uganda is going to work with in improving the Railway Transport system in Uganda, especially the railway line connecting Kampala to Tororo in Eastern Uganda.

He also cited the railway line connecting Uganda to South Sudan, Kenya,and Rwanda.

’’As there are so many projects to be worked on ,we are going to work first on railway line bordering Kenya, Sudan and Rwanda," the President said.

The President directed that Government terminates contracts with companies that are found to have unstable financial positions while undertaking the projects.

’’You have the technical know-how alright, but what is also very important is your financial capacity. If we find you to be wanting, we shall say bye bye to you," he emphasized.

Company Officials of CHEC led by their Vice President Lin Yichong informed Government that they were backed by funding from the Chinese Government owned Exim Bank.

President Museveni had sought to find out the company's source and value of financing to ensure no shortfalls during the course of the Project. He, therefore, directed that a clause to that effect be included in the contract agreement.

Due diligence has been done by Government on China Harbour Engineering Company ltd and found to be a favourable partner. The company undertakes projects like Roads , Airport, Railway, and Bridge Construction.

Some of the African countries where CHEC has undertaken such Projects include Mozambique and Southern sudan in Africa.

The Vice President of China Harbour engineering company, Mr.Lin Yichong, thanked the Government of Uganda under the leadership of President Museveni for providing a conducive environment for business investment in Uganda.

Feasibility studies and Engineering designs of the railway project were completed 4 years ago. Construction will commence soon

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