The announcement to terminate the concession agreement between the government and the Rift Valley Railways (RVR) was a climax of yet another white elephant project where billions of shillings were invested in a bottomless pit. The RVR Consortium won the bid for private management of the Century Old Uganda Railway in 2005 as it was taunted that they would revamp the ailing infrastructure. The State Minister for Finance and Investment Evelyne Anite and the Minister of Works Margarete Azuba Ntege revealed that Uganda Railways Corporation would inherit operations. The termination of the RVR agreement came after reports emerged showing white scale distraction of assets and failure to revamp warehouses and local motive repairs. “So we have terminated the concession and we are not going back and there is no room for negotiation, and that you can be sure.”

In her remarks, the Minister revealed that the government took the decision to terminate the RVR agreement for causing a loss of about 784.4 million dollars approximately 2.8 trillion shillings for the time it had been operating. “We are not following them for what they have not done which is outside the concession. What we agreed with them in the concession and the fail to do, that’s why we are faulting them.” Said, Evelyne Anite – State Minister of Finance (Investment). The Minister also revealed that the Rift Valley Railways failed to pay concession fees to the government of about 8.5 million dollars, failed to hit the agreement freight volume, failed to submit audit reports as per the law, failed to rehabilitate and maintain the Pakwach line, and failed to rehabilitate and maintain assets of Uganda. “I assured my colleague that we are ready. Please demonstrate your readiness otherwise, I don’t want us to get to a position as the government to say that we now moved out of the frying pan to the fire.” Said, Eng. Monica Azuba – Minister of Works and Transport.

The Minister of Works and Transport while addressing the board, revealed that there was a monumental task of rescuing Uganda’s Rails from the limbo. “Right now as you have seen we certainly need significant capitalization. Some of that will obviously come from the government but some of it we will need to get it from our own businesses working with the private sector.” Said, Hannington Karuhanga – Chairman, Uganda Railways Corporation. The Ministers also visited the stores for goods to assess the extent to which the damage caused by the RVR. According to the Uganda Railways Corporation, out of the 48 local motives that were handed over to RVR, only 16 were still running.