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Uganda okays USD 395.5 million loan for Kampala-Malaba MGR refurbishment

Friday, 14 May 2021
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Uganda’s Parliament has approved a USD 395.5 million loan the refurbishment of the Kampala-Malaba Meter Gauge Railway (MGR).

The Kampala- Malaba project is part of the bigger proposed Meter Gauge Railway (MGR) project, which will entail the rehabilitation of the 8.3 km Kampala-Port Bell section and the 12.3 km Kampala-Nalukolongo-Kyengera section, purchase and rehabilitation of coaches, wagons and locomotives, creation of a railway training school to equip Uganda Railways Corporation (URC) Management and Staff with modern railway skills, and stock new spares for the workshop.

The 250 km Kampala-Malaba MGR connects Uganda’s capital with Kenya at the Malaba border. Money for the project will be sourced from the African Development Fund (ADF) which will provide USD 100.7 million, the African Development Bank (AfDB) which will provide USD 233.2 million and the Corporate Internationalization Fund of Spain which will provide USD 31.3 million.

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