Kenya and Uganda have signed a joint communique on the financing and development of the Naivasha-Kisumu-Malaba Standard Gauge Railway and the Malaba -Kampala SGR in the respective countries.
The countries penned the deal represented by Transport CS Kipchumba Murkomen and his Ugandan counterpart Edward Katumba-Wamala.
Kenya already signed commercial contracts for its part of SGR sections while Uganda will soon sign the contract for Malaba-Kampala section.
The ministers also assured that the governments are in the process of mobilising funds for the constructions.
Previously, the two states had planned on having a joint financing but there were major delays.
"The government of Kenya is desirous to submit an application for financing for the Naivasha-Kisumu-Malaba SGR section," the ministers said in a joint statement.
Further, the governments acknowledged the importance of synchronisation of the construction of the SGR sections aimed at achieving viability.
The ministers affirmed that the development of the SGR will offer benefits to their people including reduction of transport cost.
They agreed that the development of the railway will be undertaken as a regional project under the Northern Corridor Integration Projects Initiative.
"That the two governments will implement the SGR Protocol and the Bilateral Agreement under the Northern Corridor Integration Projects," they added.
Further, the countries assured that they remain committed to the construction of the connecting sections of Naivasha -Kisumu-Malaba and Malaba- Kampala SGR concurrently.
They are also committed to fast-tracking securing of financing for the SGR sections.
Murkomen and Wamala also agreed to address challenges that might impact negatively on attracting financing for the projects and disadvantage the countries in terms of reaching Rwanda, South Sudan, DRC and Burundi.
It was further agreed that Uganda will extend the SGR to its border with Rwanda, South Sudan and DRC.
This is aimed at improving viability and attractiveness for financing of the SGR along the Northern Corridor.
"Uganda will apply for financing for the SGR Western Route (Kampala -Kasese-Mpondwe with a branch line from Bihanga-Mirama Hills) immediately after securing financing for the SGR Eastern route from Malaba-Kampala," the statement said.
The two countries pledged to harmonise the construction plans for the remaining sections and the timeline for resource mobilization should be prioritized.