The Standard Gauge Railway (SGR) in Tanzania, built by Turkish firm Yapi Merkezi, is a modern railway line that has been constructed to improve transportation in the region (PHOTO/TanzaniaInvest)
KAMPALA – Uganda’s security agencies are closing in on individuals who have been representing an international construction company that had expressed interest in the construction of Uganda’s Standard Gauge Railway, following the fallout from the procurement process.
According to information from highly placed sources, the Uganda government’s intervention to investigate some individuals including an international contractor, was triggered by the fall-out from the award of the construction of the SGR to Turkish firm Yapi Merkezi, known for excellently delivering the Tanzania SGR project.
“The development kicked off disgruntlement among Ugandan-based middlemen representing an international contractor, who have since hatched plans to sabotage the project, threatening the positive development,” a security source said.
According to multiple security and government sources, among the malevolent plans include forming a scheme whose cardinal purpose is to sponsor lies, blackmail, defamation and falsehoods against innocent people they falsely suspect to have been the reason they lost the Standard Gauge Railway (SGR) deal.
“We already know that the disgruntled individuals produce and disseminate as much disinformation and misinformation about the project as possible with the aim of scandalizing it so that they would funders get discouraged from associating with it,” a security source said, arguing that Uganda’s infrastructure flagship projects like Bujagali hydropower have in the past been victims of negative publicity that made the funders become hesitant to approve funds in time.
“So, the government has this time decided to intervene at an early stage,” the source said.
It is understood that Ugandan brokers who have been at the helm of every big project for decades, were extremely upset when President Museveni heeded to Late President John Pombe Magufuli’s advice to try out the Turkish Railway specialized construction company Yapi Merkezi to take on the Uganda SGR contract from Malaba to Kampala. This was after the Chinese contractor had failed to source funds for 7 years.
The Chinese contractor signed a contract with the government of Uganda in 2017 to build a standard gauge railway from Malaba to Kampala. In the same year, Tanzania signed a contract with Yapi Merkezi to commence her SGR development. Since that time, Yapi Merkezi has built the SGR from Dar es Salaam – Morogoro (300 km), Morogoro- Makutupora (422 km) which are now operational, and currently building Makutupora –Tabora (294 km).
In 2018, Kenya signed a contract to extend the 120 km of SGR from Nairobi to Naivasha and Suswa and the works are already completed and operational.
While other East African countries were making giant strides in construction, Uganda’s SGR development stalled in its infancy due to the fact that the contractor failed to source funds as had promised. For seven years the government kept the Chinese contractor on pressure to commence the project in vain because he couldn’t secure funds for the project as had originally stated in the proposal.
With negative progress from the Chinese contractor, the former president of Tanzania the late Pombe Mafuguli advised, recommended and personally introduced Yapi Merkezi to his Ugandan counterpart. Yapi Merkezi was already constructing the Tanzanian SGR and President Magufuli was extremely happy their speed, efficiency and quality.
Disillusioned with Chinese contractor for doing nothing on the contract after 7 years of signing , President Museveni immediately dispatched a team of government officials to Tanzania to liaise with their counterparts overseeing the SGR construction and also to carry out due diligence on Yapi Merkezi.
The team was also sent to countries Yapi Merkezi had constructed SGR like in the U.A.E where the company successfully built and delivered Dubai metro ahead of schedule. The team also went to, the United Kingdom, Germany, and, Turkey for further evaluation. When the team returned with positive feedback, President Museveni immediately directed that the government commence open negotiations with Yapi Merkezi.
The late President Magufuli directly recommended Turkish firm Yarpi Markezi to take on the Ugandan SGR project
On 21 August 2024 the Minister of State for Information, Communications Technology & National Guidance Godfrey Kabyanga, while addressing the media in Kampala confirmed that the government is continuing to make significant progress in the development of the Standard Gauge Railway (SGR) in the country, with the government due to sign an EPC/ with M/s Yapi Merkezi (Turkish firm) in the coming few weeks.
Sources further told us that when the local agents of a competing international contractor got wind of the above development, they hastily convinced the Chinese contractor to submit a fresh proposal this time promising that if they are given another chance, they will not wait for 7 years like before but rather will mobilize funds quickly this time from Europe.
Accordingly, after losing the business, the frustrated agents have resorted to sponsoring unprofessional bloggers to tarnish, blackmail, and character-assassinate anyone they suspect to have played a role in the loss of their business. According to a highly placed security official who requested not to be identified because of the sensitivity of this matter, “the middlemen are fighting to ensure that Uganda fails to develop its flagship project by sponsoring falsehoods to discredit the project. Their motto is, if we can’t have it , no one else should … they are extremely greedy people but we are monitoring all their activities and moves .”
Another source from security said “We already know who these middlemen are, who they’re in touch with both government ministries and agencies, the professional extortionists hiding behind journalism to create fake accounts to fabricate and spread inaccurate information. Investigators are busy analyzing the evidence so far obtained”.
