Gov't signs MoU on One Stop Border Posts

By Steven Candia

The government of Uganda has signed a Memorandum of Understanding (MoU) with a key financier for the construction of One Stop Border Posts (OSBPs) to ease movement and enhance trade in the region.

The MoU signed with Trade Mark East Africa (TMEA) will provide the frame work under which four OSBPs will be constructed at the borders of Busia (Uganda/Kenya), Mutukula (Uganda/Tanzania), Mirama Hills (Uganda/Rwanda) and Elegu (Uganda/ South Sudan) under the East Africa Trade and Transport Facilitation Project (EATTFP).

Charles Muganzi, the Permanent Secretary in the ministry of works–the implementing agency signed for Uganda while Frank Matsaert, the Chief Executive Officer, signed on behalf of TMEA.

Speaking at the function at the ministry mid-this week, Muganzi hailed TMEA for willing funding the projects despite some hiccups, saying the intervention by TMEA was timely.

“I know we have had our own problems in as far as pace of implementation is concerned but we are trying to resolve that but thanks for standing by us as the construction of the OSBPs will go along way in improving the quality of life of the local person in the region by lowering costs of doing trade and time,” Muganzi said at the function held at the ministry board room.

Matsaert described the signing as a historic moment, saying the OSBPs once constructed would greatly transform the lives of not only Ugandans but the region.

“We are delighted to be part of the move to reduce trade costs and time in doing business,” Matsaert said at the function attended by World Bank officials.

However, both TMEA and WB, one of the funders raised concern over the slow pace of implementing other OSBP projects in the country.

Under the MoU TMEA will provide parallel and direct financing for the project and will conduct bi-annual reviews, among others while the Government of Uganda will provide land and undertake matters to do with procurement and contracting among others.

But the signing of the MoU comes at a time when the procurements for the construction of OSBPs in Busia Malaba and Katuna have been shrouded with controversy, delaying the process, with the Public Procurement and Disposal of Public Assets Authority (PDDA) ordering a re-evaluation of the bids.

Muganzi said the re-evaluation should be concluded by end of next week and hopefully allow the projects continue.