Uganda National Roads Authority (UNRA) has said it is in the process of reinstating embattled Dott Services Limited two years after the firm’s contract was terminated for poor working relations and failing to meet contractual timelines.
The UNRA Executive Director Allen Kagina said that the decision to reinstate Dott Services along with another company called China Rail No. 18 followed government’s decision.
“We are in discussions with Dott Services to come back. We were guided by the Attorney General to enter into consent to have them reinstated,” Kagina told journalists during a press conference on Wednesday.
“UNRA is taking steps to ensure that the projects are implemented strictly in accordance with the terms and conditions of their contracts in the quickest time possible,” Kagina added.
In 2015, UNRA took a decision to terminate a contract signed with Dott Services for the rehabilitation of the 120 kilometre Nakalama – Trinyi – Mbale road.
This was after the contractor had failed to comply to certain terms in addition to having a poor working relationship with the project supervisor (UNRA).
By 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).
The decision to reistante Dott Services’ contract follows numerous directives from President Yoweri Museveni to the UNRA Executive Director asking that the roads Authority reconsiders its decision, arguing that local companies deserved to be supported to develop their capacity.
In a letter dated January 8, this year, President Museveni said he had learnt that Dott Service is a big company worth USD 100 million and thst it is not just in road construction but also in electricity generation in Uganda
“It is therefore, a company that can broaden their investment efforts in Uganda. In the wider interests of the country, therefore, you should give this company one more chance on the Mbale-Tirinyi road,” Museveni directed Kagina in the letter.
The President urged UNRA to exercise some level of flexibility in as far as the issue of Dott Services was concerned.
“Some flexibility does not, in any way, undermine our anti-corruption efforts,” the President wrote in the same letter.
On Wednesday, Kagina also revealed that another company (Chinese Rail No. 18) which had been contracted to upgrade the Musita -Lumino – Busia/Majanji road was also reinstated. The works had been 70% behind schedule at the UNRA tool decision to cancel the contract.
Many are likely to view the decision to reinstate companies that failed to meet their contractual obligations, causing government to lose time, as undermining efforts to prevail over poor contractors.
This interference of the Executive could in future frustrate UNRA’s endeavor to ensure timely delivery of services.
However, reacting to this, Kagina said; “The reinstatement of Dott Services and China Rail should not undermine our efforts to monitor performance. We have signed contacts, with terms and we shall continue to ensure every project follows those terms”.