The railway will connect to neighbouring Kenya's Standard Gauge Railway and on to the Indian Ocean port of Mombasa.

Other projects to be financed under the three-year deal will be in sectors such as health, transport and energy infrastructure.

The agreement was signed by Ramathan Ggoobi, the Finance Ministry's most senior technocrat.

Also the bank's Vice President Rami Ahmed at the Saudi Arabia-headquartered development bank's annual meeting in Algiers, the ministry said on X late on Wednesday. 

--Reuters--