Nairobi, Jan. 12 -- After eight years of non-execution, the Uganda government has terminated the contract of China Harbour Engineering Company (CHEC) to build the country's first phase of standard gauge railway (SGR), a 273km line from Malaba to Kampala, The EastAfrican has learnt.

The line, starting from the Malaba border post between Uganda and Kenya, was expected to cost $2.2 billion, but the Chinese financiers did not fund the project after casting doubt on Kenya's SGR reaching the border to link with Uganda's and making the project viable.

The SGR Project Coordinator Eng Perez Wamburu says Kampala has now signed a memorandum of understanding (MoU) with Turkish firm Yapi Merkezi. The company is expected to submit a response to the g...