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Uganda’s Malaba–Kampala SGR EPC/T Contract with Turkey’s Yapi Merkezi Moves Toward Full Construction

Country
Uganda
Sector
Rail
Intelligence Type
Procurement
Status / Stage
Limited Notice to Proceed / Pre-Construction Design
Confidence
Confirmed

Uganda’s Ministry of Works and Transport is progressing the Engineering, Procurement, Construction and Turnkey (EPC/T) contract awarded to Turkish firm Yapi Merkezi for the Malaba–Kampala Standard Gauge Railway. The contractor is currently on a Limited Notice to Proceed, conducting design work, establishing a sleeper factory and construction camp, while full construction is targeted to begin in 2026. The contract binds Yapi Merkezi to ensure design compatibility with Kenya’s adjoining SGR network, and land acquisition along the corridor is well advanced.

Procurement Details

Procurement TypeWorks (EPC/Turnkey)
Procurement MethodEPC/Turnkey Contract
Buyer TypeGovernment
Funding SourceGovernment of Uganda; external lender guarantees under negotiation
Contract Award Date2024-10

Key Issues / Risks

Full construction start delayed roughly nine months past initial launch; contractor still finalising design; financing terms under negotiation with lenders.

Latest Development (Detail)

Land acquisition has entered Mukono district and is expected to reach Wakiso and Kampala before construction ramps up; nine of twelve corridor districts have completed compensation as of late 2025.

What Happens Next

Full construction start (targeted April 2026 onward); financing close; interoperability testing with Kenya's SGR system.

Commercial Opportunity

Opportunities for local construction subcontractors, sleeper/track material suppliers, and logistics firms as the sleeper factory and construction camp are established.

Stakeholder Intelligence

Procuring EntityUganda Ministry of Works and Transport
Winning Bidder / ContractorYapi Merkezi (Turkey)
Other Bidders / ParticipantsYapi Merkezi (contractor); Uganda Ministry of Works and Transport; Uganda National Land Commission

Procurement & Contract Outlook

Procurement / Contract OpportunityMain contractor selected; local supply chain and subcontracting opportunities opening as construction ramps up
Expected Next MilestoneFull construction start (2026-04)
Related ProjectMalaba–Kampala SGR (Uganda Standard Gauge Railway)

Commercial Opportunity Intelligence

Financing / Capital OpportunityGovernment of Uganda budget plus external lender guarantees (in progress)
Potential BeneficiariesUganda government; Yapi Merkezi; Kenya-Uganda Northern Corridor trade
Opportunity SignalMixed — progressing, but behind original schedule
Commercial ReadinessPre-construction / design

Source & Verification Trail

Last Verified2026-08-21
Source(s)The EastAfrican; AllAfrica
Source Date2025-11-21