Parliament asked to probe award of contracts for UGX 784 Billion electricity project

Kampala, Uganda | THE INDEPENDENT | 14 Local contractors have petitioned the Natural Resources Committee to investigate selective subcontracting in the 784 billion shillings rural electrification project.

The companies were part of the 59 prequalified sub-contractors by TBEA Co, a Chinese Power company working on the project that is to connect power across approximately 3,800 km of medium voltage and 5,900 km of low voltage networks with transformers and consumer connections.

The project is aimed at extending electricity to 287 Sub-Counties across the country and the connection of over 170,000 customers directly onto the national grid. The project is the first phase of part of the USD 760m (2.8 trillion)  loan from Exim bank signed in 2017 and expected to benefit 500 sub-counties.

Appearing before the Natural Resources Committee in closed-door meeting on Tuesday, the sub-contractors say that TBEA Co has selectively picked on contractors, failed to consider factors like terrain and also dumped them for trying to negotiate.

The project was meant to start in August this year but has so far been pushed for the fourth time due to several disagreements.

According to Dr Keefa Kiwanuka, the Kiboga East MP and the chairperson of the committee, the contractors have come with valid reasons requiring a major investigation into the project.

He says, for instance, the contractors are demanding at least 17 million shillings per kilometre for medium voltage and low voltage among other works, contrary to TBEA’s 9 million shillings per kilometre for medium voltage and low voltage which is unsustainable.

He says the contractors say they have been dropped in favour of some inexperienced contractors who have agreed to work at a lower cost.

According to9 Kiwanuka, the committee will investigate the allegations including ideas that some contractors were formed in March and January this year way after the contract was signed.

Edmund Herbert Ariko, the MP Soroti Municipality says it is important that the sub-contractors believe that they cannot work with what is being offered, but Rural Electricity Authority (REA) is not taking action and the main contractor is adamant.

He says there are allegations of unfair treatment, as others are being paid more money, while the rates of transportation for picking materials among others are not being adhered too.

One of the contractors who spoke to URN on condition of anonymity says they did every calculations and found out that it was impossible to do the project with the little money provided. He says Government should intervene in the matter before huge losses are incurred.

The committee is now planning to meet ERA, TBEA co, Ministry of Energy and the other contractors that have agreed to work, for them to explain how the money they have will be used.

The concerns in the project was first raised by David Guma Gumisiriza, the MP Ibanda County North on the floor of Parliament before it was sent to the committee for scrutiny.

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