Uganda Wants $2.3 Billion China Rail Loan Finalized by September

(Bloomberg) -- Ugandan President Yoweri Museveni directed government officials to sign off on a $2.3 billion Chinese loan for a new railway by September to curb further delays on the project.

He asked for more flexibility in negotiating with the Export-Import Bank of China, without necessarily compromising the project, according to a statement by Works Minister of State Katumba Wamala on the parliament's website. Uganda has failed to secure the financing since 2015 following differing outcomes of feasibility studies done by the two parties, according to the statement.

Landlocked Uganda plans a 273-kilometer (170-mile) line from the Kenyan border town of Malaba to the capital, Kampala. It has already acquired land for a 100-kilometer stretch and plans to borrow 85 percent of the planned cost from the Chinese lender.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net.

To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Helen Nyambura, Renee Bonorchis

©2018 Bloomberg L.P.