Business
Court rejects bid to stop procurement of by-pass contractor
Publish Date: Apr 06, 2014
Court rejects bid to stop procurement of by-pass contractor
The by-pass is to be expanded and all roundabouts replaced by bridges
  • mail
  • img
newvision

By Hillary Nsambu

The High Court has rejected the bid by a Nigerian road construction company to stop the procurement of a different contractor to expand the Northern By-pass.

Raynolds Construction Company (NIG) Ltd. was disqualified by the Government, Uganda National Roads Authority (UNRA) and the European Union.

The decision was based on the failure by Raynolds to bring proof of at least two projects it had done to the requirements of the Northern By-pass expansion project.

The expansion of the road includes conversion into a dual carriage way and elimination of all roundabouts replacing them with fly-overs.

Raynolds, which already has a contract to build the Kampala-Katuna road, was the lowest bidder, the Court heard.

The Government, UNRA and the EU insisted that the requirements for the Northern By-pass project are complex and differ from the ones for a road like Kampala-Katuna, which Raynolds is handling.

When Raynolds’ was disqualified, it filed an application for judicial review of its disqualification as well as orders to quash the decision and a court order that the contract be awarded to it. They argued that their disqualification was illegal.

The application for judicial review is still pending. Raynolds also filed an application for a temporary injunction stopping the procurement process until its main application is heard.

But Charles Emuria, the High Court registrar, rejected the application for a temporary injunction saying allowing it could cause government to lose funding.

The expansion of the 21- km by-pass that runs from Bweyogerere to Busega is to be funded by a euro 67m grant from the European Union.

Dan Alinange, the UNRA spokesperson said the court case has delayed commencement of the bypass expansion works which were slated to start this month.

He said the EU had also threatened to withdraw the funding if the contract is not awarded on time.

The Registrar noted that Raynolds had failed the technical evaluation and UNRA withdrew the award.

He ruled that Raynolds failed to demonstrate that it deserved the orders it was seeking from the Court.

He agreed with Joseph Matsiko, the UNRA lawyer, that the Government and UNRA had the unfettered right to cancel the procurement procedure and they rightly exercised their mandate.

“Because granting the order might cause the Government to lose funding, the application should be dismissed with costs,” Emuria stated in his ruling.

According to the affidavit filed by Sebbugga-Kimeze, the UNRA acting executive director, it was a condition that if there was no contract executed between the respondents and the contractors by April 8, 2014, Uganda would lose the Euro67m funding.


 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Contradictions cloud pensions liberalization
MAJOR contradictions still exist among the major backers of the impending liberalized pensions sector on which to adapt with the liberalization bill expected on the floor of parliament...
Gov
IN efforts to expand market for Uganda's agricultural produce, Government has embarked on wooing more investors in agro-processing to set up investments...
Stanbic Bank signs debut $85m  loan
Stanbic Bank Uganda (SBU) has signed an $85 million, 18-month loan to fund its general business activities, the first time it has borrowed from international loan markets, the main arranger of the facility said...
Tax on private schools starts
Efforts by educationists to block the recently restored income tax on private schools have hit a snag....
Facebook beats forecasts with strong profit gains
Facebook says profit soared on the wings of mobile ad revenue but stresses it is more concerned with investing in the future than making quick cash....
Shilling sheds 0.3% after sh180b auction
Despite an injection of sh180b to ease scarcity, the shilling lost 0.3% against the dollar on Wednesday with some traders saying yields on the recent 2 year and 10 year Treasury bond could signal lower yields going into February...
Do you agree with the new tax on private schools?
Yes
No
Can't Say
follow us
subscribe to our news letter