Govt to recover arrears
Apr 02, 2009
UGANDA has met its contractual obligations with Rift Valley Railways to handle the delayed payment of the concession fees,
UGANDA has met its contractual obligations with Rift Valley Railways to handle the delayed payment of the concession fees, writes Vision Reporter.
Jim Mugunga, the Privatisation Unit spokesperson, however, said the Uganda-Kenya railway operator was keen on clearing the arrears. He did not disclose how much the firm owes Uganda.
“There are clauses in the contract between RVR and both governments (of Kenya and Uganda) on how such a case can be handled,†Mugunga said.
“The Government is aware of all this and has communicated to the concessionaire.
“It has also operationalised the relevant clauses in the contract to handle the issue.
“However, top-level interventions are going on to enable the firm to provide good services,†Mugunga said.
Although Mugunga could not say how much the arrears were, media reports had indicated that they were equivalent to four quarters with each quarter worth $350,000 (about sh736m).
The railway operate could not be reached for a comment on the issue.
Jim Mugunga, the Privatisation Unit spokesperson, however, said the Uganda-Kenya railway operator was keen on clearing the arrears. He did not disclose how much the firm owes Uganda.
“There are clauses in the contract between RVR and both governments (of Kenya and Uganda) on how such a case can be handled,†Mugunga said.
“The Government is aware of all this and has communicated to the concessionaire.
“It has also operationalised the relevant clauses in the contract to handle the issue.
“However, top-level interventions are going on to enable the firm to provide good services,†Mugunga said.
Although Mugunga could not say how much the arrears were, media reports had indicated that they were equivalent to four quarters with each quarter worth $350,000 (about sh736m).
The railway operate could not be reached for a comment on the issue.