Uganda drops Chinese firm from railway deal, eyes Turkish rival - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Uganda has terminated its contract with 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 commuter train of the Nairobi Commuter Rail Service travels from the Donholm station in Nairobi, Kenya November 12, 2018.A commuter train of the Nairobi Commuter Rail Service travels from the Donholm station in Nairobi, Kenya November 12, 2018.has terminated its contract with Chinese firm China Harbour and Engineering Company Ltd 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.

The 273-kilometre railway line, estimated to cost $2.2billion, 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. He said Uganda had written to the Chinese firm in December cancelling the contract and that the Chinese had so far not indicated any objection to the decision.

“China and Uganda are comprehensive cooperative partners, and practical cooperation between the two countries is at the forefront of China-Africa cooperation,” he told a news conference in Beijing.“So now the discussions are with Yapi Merkezi which has shown interest there’s no contract with them yet, but there’s a MoU and things are moving fast.”

 

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