The implementation of the Uganda Support to Municipal Infrastructure Development Program (USMID) roadworks in Kabale Municipality faces uncertainty following the Attorney General’s (AG) guidance. The AG has allowed Kabale Municipality to enforce a performance bond, which is a financial guarantee issued by a bank or other institution to ensure the fulfillment of a contract, as the contractor failed to meet their obligations.
In a letter dated September 22, 2023, the AG, Mr. Kiryowa Kiwanuka, addressed the Kabale Municipality clerk, Ms. Justine Barekye, stating that any outstanding work can only be completed through a new procurement process. This new process must adhere to the Public Procurement and Disposal of Public Assets Act, 2003 (as amended). This means that Kabale Municipal Council may need to consider re-tendering the unexecuted works to find a new contractor.
The issue dates back to May 27, 2021, when Kabale Municipal Council contracted M/s Multiplex/Ditaco International Trade to construct and tarmac roads in Kabale, including Rushoroza Road (2.49 km), Bwankosya Road (0.76 km), and Bushekwire Road (0.34 km) at a cost of Shs21.7 billion. The project was initially expected to be completed by May 26, 2022, but as of now, construction remains incomplete, despite contract extensions.
The AG’s guidance was in response to Ms. Justine Barekye’s request for legal advice on how to proceed with the contract that elapsed between Kabale Municipal Council and the contractor, as well as how to implement directives for matters under adjudication.
Kabale Municipal Council Mayor, Mr. Sentaro Byamugisha, during a site visit with World Bank officials, suggested extending project funding for an additional two months as they work on the AG’s guidance. He explained that the contractor had completed only 40 percent of the expected work, and the funding for USMID projects was set to end on December 31.
Mr. Kiwanuka clarified in his letter that the directives from the Inspector General of Government (IGG) did not alter the terms of the contract or extinguish the rights of either party under the contract. This situation leaves the completion of the Kabale USMID roadworks hanging in the balance, pending further decisions and actions by the municipality and potential new contractors.
