The 273-kilometre line will run from Kampala to the Kenyan border.
The country aims to construct first nuclear plant in East Africa.
Project is part of a wider 'Smart City' plan to restructure transport systems in the capital.
The Turkish firm will help secure US$2.2 billion for a rail link connecting Uganda to Mombasa in Kenya.
The funds are being used to reconstruct 29 roads in the capital Kampala.
The railway is part of the Northern Corridor of the East African Community linking Kampala to the Port of Mombasa in Kenya.
Interview with Innovation: Africa, Uganda Country Manager.
Serengeti Energy developed the hydropower plant.
Angololo Dam to help solve water woes in five regions across both countries.
Construction works on the country’s second international airport is 80% complete.