Uganda Seeks Investors To Revamp Rail Lines To Oil Region

KAMPALA, Uganda -(Dow Jones)- The Ugandan government is in talks with various international companies as it seeks investors to revamp railway lines to the country's oil region ahead of the commencement of oil production, a government official told Dow Jones Newswires Tuesday.

The government is exploring all options, including the awarding of stakes to strategic investment partners to revamp railway sector, reports Jim Mugunga, the spokesman of the privatization unit at the ministry of finance.
"We continue to receive offers from various companies" he said. "We are at a critical state where we need to revamp the railway sector."

Uganda has two railway routes to its oil-rich Albertine rift basin. However, the two routes haven't been operational for more than a decade due to lack of investments as well as the suspension of copper mining at Kilembe Copper Mines.

Last year, the government awarded the route to the northern side of the Lake Albertine rift basin to Egypt-based Citadel Capital. The railway link to Kasese, the Southern end of the basin, remains in government hands and is considered a key gateway to the oil region and the Kilembe Copper Mines, according to Mugunga.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 bariyonic@yahoo.co.uk