Court dismisses Dott services case against UNRA

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KAMPALA (@UG_EDGE) – Court on Friday morning dismissed an application by Dott Services stopping Uganda National Roads Authority [UNRA] from procuring a new contractor on Nakalama-Tirinyi road.

According to the ruling by the Registrar of the High Court of Uganda, His Worship Thaddeus Opesen, UNRA had long procured a new contractor following the termination of Dott Services.

The contract was due for approval at the Solicitor General’s office until an injunction was filed by Dott services.

With the new ruling, the implication is that UNRA can now proceed with its efforts to get a new contractor on site and ensure the road receives the needed attention.

Background

On 2nd February 2015, UNRA signed a contract with M/s Dott Services for the rehabilitation of Nakalama-Tirinyi-Mbale Road (102km) with a completion date of 24th June, 2017.

M/s Dott Services Ltd objected to UNRA supervising the works and commenced adjudication proceedings against the Authority.

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 29th of August, 2017, agreed to pay UNRA UGX: 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.

Dott Services Ltd paid the above amounts to UNRA and the obligations of the Parties under the contract were accordingly brought to closure.

At the time of the termination, the contractor had only achieved 19.09% cumulative physical progress on the works compared to the 94.46% 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 7th September 2017, M/s China Civil Engineering and Construction Corporation, was declared as the best Evaluated Bidder for the project.

Subsequently, on 14th September 2017, the proposed draft contract was forwarded to the Solicitor General of Uganda for approval.

However, on Friday the 22nd of 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 25th September 2017, the Registrar of the High Court of Uganda, His Worship Thaddeus Opesen, issued an interim order stopping the signing of the contract with M/s China Civil Engineering and Construction Corporation until 30th October 2017.

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