Wednesday, January 7, 2009

Kenya, Uganda agree to Construct joint Railway System

A latest Kenya-Uganda railway companies will be up build after the gap vale Railways (RVR) failed to improve rail transport in the region. Kenya and Uganda governments will sign a two-sided accord in the next three months to build a new high ability and speed railway normal resources from Mombassa to Kampala with a local office line to Kisumu at a price of Sh3.5 billion. The new line will work together with the existing meter gauge operated by RVR.

Museveni with Kibaki


We want to build a modern normal gauge railway line, since we have encountered many troubles with the old railroad tracks, enen after the allowance, said Prime Minister Raila Odinga in the opening Joint payment assembly on the new line. The choice to build a new line: the two governments trust RVR to improve rail network is down. And even if they have toyed with the idea to cancel the allowance contract, that is, to build a second line is a more viable option than to restore the obtainable rundown network at a price of Sh37.5 billion over five years. RVR, which entered the scene at the end of 2006, has come under repeated criticism for running the rail network and cause a cargo pile up at Mombassa port. Although the existing railway system has a capacity of five million tones of cargo per year indhalingstidspunkt capacity continues to fall, which accounts for less than six per cent of freight movement in the Northern Corridor in 2007. This result is very bad considering Mombassa port is currently handling over 16 million tones of cargo per year. With the increasing traffic in the port is expected to reach 30 million tones in 2030, it is necessary to build an efficient and reliable transport to ensure the goods leave the port as soon as they are removed has been crucial. In Uganda, we are concerned over the high cost of transport and installation of the line is long overdue, "said John Nasa Sira, Uganda's transport minister.

Spply fritter away
Development map for the new line, the signing of the bilateral  agreement by the end of March this year to pave the way for the foreword of a common legal and following frame for joint development and completion. This includes the organization of a full possibility learn for 12 months at a cost of Sh750 million. Kenya will spend Sh600 million and Sh150 one million Uganda. Both governments should factor of money in the 2009/10 budgets. Raila and Nasa Sira, however, questioned the need for a possibility study, considering as a waste of time. "We spend so much money on possibility studies, but the projects are not completed," noted PM. incongruously NOK, the two governments banking on the possibility study to show the economic feasibility of the project and attract alarming and knowledgeable investors to money the design and building of the line. Investors who want to ensure that the line is fully operational in 2017, would run it for an agreed period of time to recover their investment and a reasonable return. At the end of this period, investors would transfer back the infrastructure for the two governments

Summary: As Kenya-Uganda going to start joint railway System with investement of Sh3.5 billion

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