Plans to rehabilitate Nakalama-Tirinyi-Mbale road in Eastern Uganda have hit a snag after Dott Services secured a court injunction blocking Uganda National Roads Authority (UNRA) from awarding the contract to the best evaluated bidder for the job, Chimp Corps report.
This means the 100km stretch which remains in dire state will take longer to be upgraded.
Ugandan politicians recently urged UNRA to expedite the procurement process for the development of a crucial business route.
“The Authority calls upon all the stakeholders to exercise patience as the court processes are concluded,” UNRA said in a statement on Tuesday evening.
“The Authority regrets the delay caused by M/s Dott Services Ltd. In the interim the Authority will continue to maintain the road in motorable.”
It all started on 2 February 2015 with UNRA signing a contract with M/s Dott Services for the rehabilitation of Nakalama-Tirinyi-Mbale Road (102km), with a completion date of 24 June, 2017.
M/s Dott Services Ltd objected to UNRA supervising the works and commenced adjudication proceedings against the Authority.
According to UNRA, this led to “irretrievable breakdown of the contractual relationship” between the parties and “negatively impacted” on the project.
Due to this impasse, the contract was terminated.
Following the termination, UNRA and Dott Services Ltd reconciled their accounts in accordance with the contract.
Dott Services Ltd by consent order executed on 29 August, 2017, agreed to pay UNRA Shs 1,005,094,247 and USD 27,336.77 being the outstanding balance that was due to UNRA from Dott Services Ltd from the Advance Payment sums advanced to Dott Services Ltd at the time of signing the contract.
It’s understood Dott Services Ltd paid the above amounts to UNRA and the obligations of the Parties under the contract were accordingly brought to closure.
UNRA says at the time of the termination, the contractor had only achieved 19.09 percent cumulative physical progress on the works compared to the 94.46 percent planned.
Immediately after closure of the contract with M/s Dott Services Ltd, the Authority embarked on the process of procuring another contractor to save the existing road works from waste and deterioration.
On 7 September, 2017, M/s China Civil Engineering and Construction Corporation, was declared as the best Evaluated Bidder for the project.
Subsequently, on 14 September, 2017 the proposed draft contract was forwarded to the Solicitor General of Uganda for approval with UNRA still waiting for the approval.
However, on Friday, 22 September, 2017, the Authority together with the Attorney General of Uganda, were sued by M/s Dott Services Ltd before the High Court of Uganda for orders “restraining the Authority from entering into a contract with any other contractor, other than M/s Dott Services Ltd and also restraining the Attorney General from approving/clearing the proposed contract with M/s China Civil Engineering and Construction Corporation.”
On Monday 25 September, 2017, the Registrar of the High Court of Uganda, Thaddeus Opesen, issued an interim order stopping the signing of the contract with M/s China Civil Engineering and Construction Corporation until 30 October 2017.
Museveni warning
President Museveni recently directed the blacklisting of Dott Services for sabotaging government projects.
The construction firm, which was hugely criticized for doing shoddy works on several roads in Eastern Uganda, would later mobilise supporters in government to have the President’s order retracted.
The president would later set conditions to rescind his instructions including withdrawal of court cases against UNRA and non-interference in the implementation of future road projects.
The new development could lead to protracted legal battle between Dott Services and UNRA, undermining plans to have Tirinyi road fully upgraded.