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Reuters
Reuters
Business

Uganda drops Chinese firm from railway deal, eyes Turkish rival

Uganda has terminated its contract with a Chinese firm China Harbour and Engineering Company Ltd (CHEC) to build a railway to the Kenyan border and is now considering a deal with a Turkish company, a senior official told Reuters on Friday.

In 2015, the east-African country signed an engineering, procurement and construction contract with CHEC to develop the Standard Gauge Railway (SGR) project, which will use the international standard rather than a narrower gauge sometimes used in the region.

The 273-kilometre railway line, estimated to cost $2.2 billion, would link the capital Kampala and Uganda's border with Kenya, where it is planned to link up with Kenya's own standard gauge rail that runs to the Indian Ocean seaport of Mombasa.

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