The Government of Uganda is in negotiations with a new contractor for the construction and completion of the Mukono-Kyetume-Katosi-Nyenga road project.
The contract involves the upgrading of the Mukono-Kyetume-Katosi-Nyenga road from gravel to paved standard.
The road is going to be constructed at an estimated cost of USD 91m. The Government is negotiating with M/S JV SBI International Holding which put up a joint bid with Reynolds Construction Company Limited (RCC) for the project. SBI and RCC are awaiting for Attorney General, after having been evaluated as best bidders.
The road is 74Km long gravel road situated in the central part of Uganda, which connects Mukono District to Jinja district through the newly created district of Buikwe. The contractor is supposed to upgrade the road from gravel to paved standard with a 50mm asphalt concrete carriageway.
Construction works on the roads had already begun. The works were being undertaken by M/s Chongquing International Construction Corporation (CICO), which had been sub-contracted to the project by Eutaw Constructions Ltd who had won the original tender.
The new contract will mean additional costs for Uganda, from the initial US$58.9m, of which US$42.8m was paid to M/S CICO, to US$90.3m.
The contract won by M/S CICO was initially challenged and cancelled by the Inspectorate of Government following claims that there was mismanagement of the procurementhttp://constructionreviewonline.com/wp-admin/post.php?post=20025&action=edit&message=10 process. The new bid by SBI and RCC has been endorsed by government officials who met at State House in Entebbe last Tuesday, but sources reveal that Attorney General Nyombi warns of loss of by taxpayer if new deal is executed.