The decision comes seven months after the Kenya kicked out Qalaa-owned RVR.
The move cast doubt on the future of the metre gauge railway operator, which has been running for the past 100 years.
Uganda Investment Minister Evelyn Anite, was quoted by local media linking their decision to the alleged breach of contract that made the railway outfit suffer a Sh7.84billion loss.
Last April, Kenya blamed RVR’s management of failing to meet set operating targets, including payment of concession fees.
Uganda has followed Kenya’s suit and terminated the 25-year concession for the Rift Valley Railways (RVR) dealing a further blow to Egyptian firm Qalaa Holdings.
The decision comes seven months after the Kenya kicked out Qalaa-owned RVR.
The move cast doubt on the future of the metre gauge railway operator, which has been running for the past 100 years.
Uganda Investment Minister Evelyn Anite, was quoted by local media linking their decision to the alleged breach of contract that made the railway outfit suffer a Sh7.84billion loss.
Last April, Kenya blamed RVR’s management of failing to meet set operating targets, including payment of concession fees.
Ms Anite said the Uganda Railways Corporation (URC) will also revive the railway’s operation adding that there will be no further talks with Qalaa.
“There is no more room for negotiations with the RVR as they have continually breached the terms of agreement,” Ms Anite was quoted saying.
She alleged that RVR had failed to remit Sh8.5 billion in concession fees besides performing below expectation on the agreed annual cargo freight volumes.
The firm has also allegedly failed to submit annual audit reports to the government and URC.
“When they took over, we had 45 wagons in operation, but today we have only 16 left. All they have left behind is a big mess which we must now address,” she said.
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