Kampala, Uganda — The Uganda Railway Corporation (URC) is seeking 93.5 Billion shillings to mitigate the effects of COVID-19 on the sub sector and also repair and maintain its assets.
In his submission, Geoffrey Obala, the URC Chief Civil Engineer told Parliament that the COVID-19 pandemic has heavily impacted on the railway operations and it also came at the time the Corporation was struggling financially.
Obala said that the 93.5 billion shillings which is needed within six months will go towards support for both minimum repair and maintenance of assets and funds to support operations including staff costs, fuel and insurance for staff and assets which are the major operational costs.
He says the corporation cannot pay salaries and wages due to very low business and will also need operational support to run the payroll during the first two years of the meter Gauge refurbishment as the line will be closed most of the time to allow refurbishment.
In the breakdown of the funding, the Corporation is seeking 4.5 billion shillings to carry out minimal repairs to the railway line from Kampala to Malaba to improve line stability saying this will help reduce transit times, reduce accidents and deliver more cargo.
