After one year of push and shove between the President, lobbyists and the Uganda National Roads Authority (UNRA), government has signed a new contract with Dott Services Limited rescinding the termination of the construction firm from Nakalama – Tirinyi – Mbale Road.
This was revealed Thursday by the UNRA Director for Roads and Bridges, Eng. Samuel Muhoozi who told Members of Parliament sitting on the Committee on Physical Infrastructure that the roads Authority signed a contract with Dott Services a week ago, on March 23.
In February 2015, UNRA signed a Shs 79 billion contract with Dott Services for the rehabilitation of the 120 kilometre Nakalama – Trinyi – Mbale road that would be concluded in June 2017. But in May 2017, UNRA took a decision to terminate the contract.
The contract was terminated after the contractor failed to comply to certain terms in addition to having a poor working relationship with the project supervisor (UNRA).
At the time of termination (May 2015), with only two months to project completion date, Dott Services had only executed 19% of the planned works (rehabilitation).
According to Eng Muhoozi, the new contract terms stipulate that Dott Services will rehabilitate the road at a revised cost of Shs 135.3 billion (with new scopes) for a period of 25 months. The contractor is expected to resume works on the road in the next two weeks, according the settlement agreement.
He told the committee that the contractor will be expected to present the performance guarantee from their bank.
The reinstatement of Dott Services was first revealed by the UNRA Executive Director Allen Kagina in January this year. It followed guidance by the Attorney General to enter into what Kagina termed as “consent” with the construction firm.
At the time, Kagina gave assurance that UNRA would take steps to ensure that the project is implemented strictly in accordance with the terms and conditions of their contracts in the quickest time possible.
While UNRA has been opposed to reconsidering its 2017 decision given Dott Services’ shoddy works and abuse of contractual timelines, President Yoweri Museveni has consistently piled pressure on the Authority to pardon the contractor, a move some say could undermine UNRA’s regulatory mandate over contractors.
In numerous letters to Kagina, the President argued that local companies like Dott Services deserve to be supported to develop their capacity. He said that the “big company” which is also in electricity generation in Uganda should be given “one more chance”.
While interfacing with MPs on the Parliamentary Committee on Thursday, Works Minister Eng Monica Azuba Ntege said that Dott Services deserves to give a benefit of doubt since UNRA has now started a new relationship with the company.