KAMPALA, April 1 (Xinhua) -- The World Bank will financially support Uganda in the construction of the Standard Gauge Railway (SGR), a senior official of the global financial institution has said.
According to a State House statement issued Wednesday, Fan Qimiao, World Bank division director for Kenya, Rwanda, Somalia, and Uganda, made the remarks while meeting Ugandan President Yoweri Museveni on Tuesday.
"I'm happy to say that I have the documents and the World Bank seriously pledges to support you financially," Qimiao said, highlighting investments in energy and transport as key drivers of sustainable development, as quoted in the statement.
Museveni welcomed the Bank's decision to support the SGR project, both through direct financing and assistance in structuring sustainable funding mechanisms.
He emphasized that the railway is a crucial component in reducing transportation costs and enhancing regional connectivity.
"That's why we are saying the railway should be for heavy cargo, the pipeline for petroleum products. The railway and water transport for cargo, whereas roads will remain for passengers and light cargo," he added.
Museveni also praised the World Bank's proposal to support agricultural industrialization and agro-processing, noting that value addition in agriculture is key to boosting productivity, creating jobs, and expanding export potential.
In March, Museveni and Kenyan President William Ruto launched the extension of the SGR to the Kenyan border town of Malaba.
Uganda's section will connect to the line once construction on both sides is completed. When finished, the SGR will link Uganda to Kenya's seaport of Mombasa, easing both cargo and passenger transport.
In 2024, Uganda signed a 2.7-billion-euro (about 3.1 billion U.S. dollars) contract with Turkish firm Yapi Merkezi to construct a 272-km SGR line between the eastern town of Tororo and the capital, Kampala.
The government said it would finance the project through domestic resources and support from development partners. ■
