Kabale USMID roadworks hang in the balance
The mayor for Kabale Municipality, Mr Byamugisha Sentaro, leads the USMID Programme Technical Committee members as they inspect Byankosa roadworks in Kabale Town recently. PHOTO/ROBERT MUHEREZA
What you need to know:
- The AG gave the client, Kabale Municipality, the green light to enforce a performance bond (a bond issued by a bank or other financial institution, guaranteeing the fulfilment of a contract) since the contractor failed to fulfil his obligations.
The implementation of the Uganda Support to Municipal Infrastructure Development Program (USMID) roadworks in Kabale Municipality hang in the balance after the Attorney General’s (AG) guidance.
The AG gave the client, Kabale Municipality, the green light to enforce a performance bond (a bond issued by a bank or other financial institution, guaranteeing the fulfilment of a contract) since the contractor failed to fulfil his obligations.
“Any outstanding works can only be completed through a new procurement process. Kabale Municipal Council may, therefore, consider re-tendering the unexecuted works/scope under a fresh procurement process conducted in accordance with the Public Procurement and Disposal of Public Assets Act, 2003 (as amended),” the AG, Mr Kiryowa Kiwanuka, said in his September 22 letter, addressed to Kabale Municipality clerk.
On May 27, 2021, Kabale Municipal Council contracted M/s Multiplex/ Ditaco International Trade to construct and tarmac Rushoroza Road (2.49Km), Bwankosya Road (0.76Km) and Bushekwire Road (0.34Km) at a cost of Shs21.7B. The project was expected to be complete by May 26, 2022. But to date, construction works have not been completed despite several contract extensions.
Mr Kiwanuka’s letter was in response to the one issued by the Kabale Municipality clerk, Ms Justine Barekye, seeking legal guidance on how to proceed with the elapsed contract between Kabale Municipal Council and M/s Multiplex Ltd and Ditaco International Trade, as well as how to implement parallel directives for matters under adjudication.
While addressing the World Bank officials led by Mr Stephen Ajalu after a site visit of the roadworks in Kabale Town on Wednesday, the Kabale Municipal Council mayor, Mr Sentaro Byamugisha, said although the USMID Project is ending on December 31, it would be prudent for the World Bank to extend the project funding for another two months as they implement the guidance from the AG.
“When the contract for the construction of these roads expired in March this year, we started charging the liquidated damages of 100 days as per the contract guidelines. In August, the deputy Inspector General of Government (IGG), Dr Patricia Achan, issued a directive halting the charging of liquidated damages and termination of the contract. She later extended the contract for extra two months, which ended. The contractor has only done 40 percent of the expected work and yet the funding of USMID projects is ending on December 31,” Mr Byamugisha said.
Mr Kiwanuka’s letter further guided that the directives of the IGG could not and did not vary the terms of the contract or extinguish any rights of either party under the contract.
