Islamic Development Bank’s Executive  Board Approve  Financing For  Standard Gauge Railway Worth Eur 650.75 Million

The IsDB Board made the approval on the sidelines of the 51st Islamic Development Bank Group Board of Governors’ Annual meetings held in Baku, Republic of Azerbaijan (16th to 19th June 2026) under the theme, “Regional Integration for Sustainable Prosperity.”

The PSST Dr. Ramathan Ggoobi who is the Temporary Governor led government of Uganda delegation and affirmed Government  commitment to achieving financial closure for this project by November 2026.

The financing from IsDB will be used to construct the Jinja Nile Bridge (553m); the Mbuya-Kampala tunnel (2.12 km); Six (6) Stations: Tororo, Iganga, Jinja, Lugazi, Kampala East, and Kampala City and three (3) Workshops: Kampala East, Jinja, and Tororo.

As at end of May 2026, IsDB and Uganda had eight (8) signed public operations (loans and grants) worth USD 896.55

million and these are  dominated by the Integrated Transport Infrastructure Services Program with projects worth USD 721 million.

The projects financed by IsDB include: Technical and Vocational Education and Training; Upgrading of Muyembe Nakapiripirit Road; Upgrading of Rwenkunye–Apac–Lira–Acholibur Road Project; Irrigation Schemes Development in Unyama, Namalu and Sippi.

The other projects are: Upgrading of national roads in Uganda (Upgrading of Katine Ochero, including construction of 6km of town access roads in Kaberamaido and Kalaki towns;  Construction of Masindi Port Bridge; Upgrading of Kyenjojo (Kihura – Bwizi – Rwamwanja-Kahunge & Mpara – Bwizi and associated town roads).

IsDB is also financing the upgrading of Kumi-Ngora-Serere-Kagwara Road project & establishment of Regional Oncology Centers in Arua and Mbale.

At the Governors’ Round table, the PSST Ggoobi thanked the IsDB for the Concessional Fund (ICF) launched in 2026 and  aimed at driving IsDB’s total concessional financing to approximately 15% of annual approvals, bridging the gap between rising global debt and sustainable development.

Dr.Ggoobi said this Fund is crucial in light of the declining traditional foreign aid flows, both in volume and reliability-widening the financing gap.

Given the changes in the global financial architecture,the PSST said  there is need for Multilateral Development Finance Institutions such as IsDB to reform and become more inclusive, adaptive and responsive to the needs of their member countries.