By Our Reporters
After years of deliberately avoiding bidding for government construction jobs fearing to be targeted by bribe-seeking politically connected individuals, Egyptian firm Arab Contractors is gradually coming back to the government fold because simply that’s where the money and the big deals are. It’s true the firm had done many big construction (not necessarily road) jobs in Uganda but had taken a conscious decision to keep away. And constructing the bunker for the cancer machine at Mulago hospital is one of the few GoU jobs they have lately undertaken under the leadership of Technical Managers Mohamed Darwish and MD Mohamed Tolba based in Naguru Kampala. But perhaps on being inspired by Allen Kagina’s leadership, closely aided by her two powerful assistants Mary Kutesa Kamuli and Esther Kusiima, Arab Contractors’ directors now have some degree of confidence in UNRA.
Only recently the firm bided and was given four lucrative road construction jobs regarding Tirinyi, Masaka-Bukakata among others. However, this has sparked bitterness among some rival contractors who say that Arab Contractors has been favored too much yet it doesn’t have much history in Ugandan recent road construction sector. Some contractors are now claiming that even when there is a government policy in place promoting local content, whereby native Ugandan-owned firms should ideally be prioritized, the current UNRA leadership hasn’t been very enthusiastic to support local firms that are owned by Ugandan natives when it comes to awarding lucrative contracts. They claim this has been the case even for firms that are “substantively responsive.” But in defense of the Kagina decision to prioritize Arab Contractors, one of the sources we spoke to for this article said sometimes it’s inevitable to hire them especially where the funding agency has Arab origin. Such funders often impose that conditionality that the contractor must be a company with Arab origin.
BUSEGA/MPIGI SAGA;
Meanwhile the animosity arising from the curious circumstances under which the Roads Authority is sidelining three lowest priced bidders in favor of the 4th cheapest (JV CCECC & CR1BGC) for the construction of the 23kms Busega-Mpigi Expressway escalated a few hours ago with the emergency of new information. We broke this story on Friday (see whistle blower tells why IGG must block UNRA’s Shs500bn road project for Mpigi) and the new information shows that even when the lowest bidder China Gezhouba Company Ltd is offering to do the job at Shs390,847,974,118; the UNRA management isn’t interested in them. In a letter to Finance Minister Matia Kasaija, the whistle blower shows that the 2nd lowest bidder (CMC Delavena JV Advent Construction Ltd) is quoting Shs488,852,657,277. Clearly there is a difference of Shs98bn that the government could save going by just the difference between the figures being quoted by the lowest and 2nd lowest bidder. The whistle blower urges Kasaija, who is a major stakeholder because the road is being funded off the $150m loan from African Development Bank which his ministry negotiated, to intervene and prevent the impending financial loss the UNRA bosses’ indifference is about to occasion. Chiefly two reasons have been advanced to deprive the lowest bidder including uncertainty as to whether the company will have the equipment to do the job and secondly that the money (390.8bn) they are quoting is too little for one to do a good job. The AfDB, to which a whistle blower separately reported, has since intervened directing UNRA to re-do the whole thing and come up with a new Bids Evaluation Report. In his letter, AfDB boss Kennedy Mbekeani waters down the grounds UNRA had given to justify its objection to the lowest bidder. Mbekeani signs off by asking UNRA to redo the work and submit ‘’’a revised bid evaluation report to the Bank for further review.’’ The AfDB big man also regrets the fact that procurement for this all-important road project has been unduly prolonged and asks UNRA to act urgently adjust the Bids Evaluation Report.
AfDB’ VIEWS;
AfDB is very important in this 23km Busega-Mpigi expressway project because without their clearance UNRA can’t proceed. There must be a letter of no objection from the bank permitting the procurement process to proceed to completion. In their communication to UNRA, in response to the whistle blower’s complaint, the AfDB bosses defend China Gezhouba Company Ltd on all the accusations UNRA had made justifying their decision to lock it out. First of all the AfDB boss says quoting very little money/sum for the contract shouldn’t be a problem because China Gezhouba provided to UNRA a detailed method statement showing how it’s possible for them to deliver the required 23km job within that contract cost. It’s also true that rejecting a bidder simply because he/she has quoted too little is prohibited in the AfDB Rules and Procedures for procurement of works. These rules are applicable to all AfDB-funded projects. As for absence of equipment, China Gezhouba has countered UNRA’s objection by delivering a written commitment from the manufacturer showing all the necessary road equipment will be availed on signing the contract. This too complies with AfDB Rules and Procedures for procurement of Works Revised 2012 under eligibility of works and related services. There is also the Statutory Instrument No. 9 which requires that once a bidder presents the manufacturer’s written commitment to supply the equipment once contracting is done, the Procuring entity’s Evaluation Committee must do due diligence to authenticate that commitment by the manufacturer is credible. The evaluation committee can’t reject someone’s bid simply because they have quoted too little. In two separate complaints to Kasaija and Works Minister Monica Azuba Ntege, the whistle blower maintains that leaving out lowest bidder (China Gezhouba) will cost the GoU and tax payer not less than Shs98,004, 683,159. There is concern amongst AfDB officials that this very important multi-national road project, meant to boast trade between Uganda and Rwanda, has been unnecessarily delayed too long yet the Ugandan tax payer is already meeting the cost on the interest payable. This is what the AfDB disapprovingly says of the UNRA Bid Evaluation Report and the disqualification of M/S China Gezhouba Group Co Ltd (which some power brokers criticize for being stingy); “The bidder was disqualified for not being substantially responsive due to equipment. Our review noted that the commitment letters from the suppliers are specifically for provision of related equipment required for implementation of the Busega-Mpigi Roads Project. As indicated in the FORM EQU under details of current commitments, nearly all the items will be new purchases (2017) of specially manufactured equipment. To the extent possible, the bidder demonstrated clearly that it has the capability to meet requirements for all the key equipment for all the key equipment for the project.” In the text paragraph, AfDB orders UNRA to revisit the entire report and rectify the anomalies therein committed against China Gezhouba and other bidders that had been unfairly eliminated. One of these was M/S AI-Naboodah Contracting Co LLC whose bid was faulted for not having an agreement for equipment lease from Civicon. But the AfDB findings disapprove UNRA thus: “…a letter to UNRA from the bidder confirms that CIVICON has entered into an agreement to lease equipment to AI Naboodah Contracting Co LLC.” UNRA had rejected this letter because it inadvertently referred to Masaka-Bukakata road upgrade. But the AfDB says this should be ‘’considered as a minor deviation occasioned by human error since the substantive tender has been referred to.’’ On MS CMC Advent Busega JV, which UNRA had defaulted because their guarantee wasn’t sufficient, the AfDB report says given the circumstances of the JV, the guarantee must be held valid. This reverses the UNRA decision invalidating the same. There is also M/S JMC Projects India Ltd that was faulted for submitting the profile for their Surveyor and Environmental managers that didn’t comply with the requirements stated in the bidding document. This affected the bidder’s technical responsiveness, according to UNRA.
W/BLOWER PLEA;
The whistle blower urges Kasaija and Azuba to stand firm along with UNRA Board Chairman Fred Omachi to ensure UNRA top management plans to consider the 3rd lowest bidder (JMC Project India Ltd Engineering & Constructors) at Shs490,141,941,799 or the 4th lowest bidder (China Civil Engineering Construction Corporation & China Railway 19th Bureau Group Co Ltd) that quoted Shs534,124,881,325 for the same job, are decisively thwarted. The whistle blower maintains this will save government money and maximize value for the tax payer. The whistle blower maintains that its generally known that China Gezhouba can do a good decent job at the money they quoted but the firm is being sidelined because the power brokers involved, together with their powerful backers at UNRA, are convinced the company’s directors are too strict to entertain proposals for any gratifications. Some works ministry officials seemed to corroborate this narrative when they told this news website that China Gezhouba is a firm of great capabilities. Firstly it’s state-owned back home in China and it has a track record of work and great performance in both China and Ethiopia. A works ministry official said it’s the 3rd largest in China and it has previous done good works in China and Ethiopia from where it produced certificates of completion which UNRA officials curiously rejected for “not being responsive enough.” The Works officials say China Gezhouba isn’t only suitable because it quoted the lowest price “but it’s also substantially responsive.” In Uganda, the same firm (China Gezhouba) was awarded the $4m contract to construct Ayago power Dam by Irene Muloni’s Energy Ministry. “All this is information is within rich for people at UNRA. The only problem is that the new Procurement Director John Omeke, who is very professional and renowned for playing by the book, hasn’t been allowed space to independently exercise his authority. The likes of Esther Kusiima, who acted in that same role between Mathias Ofumbi & Omeke, are still very powerful at UNRA and there isn’t much Omeke’s professionalism can do,” said one of the Works ministry officials we spoke to for this article. The same official added that some powerful people at UNRA have vendetta against some contractors and are determined to create a cartel of powerful foreign contractors whom they are comfortable doing business with. These views were corroborated by some of the UNRA board members this writer spoke to for this news article. For comments, call/text/whatsapp us on 0703164755.
