TO: THE PRESIDENT OF THE REPUBLIC OF UGANDA Date 7th January 2024

From :MEMBERS OF firm E7

Re:LEGAL OPINON ON THE CLARIFICATION ABOUT THE LEGALITY OF THE

CONTRACT BETWEEN M/S UECGL AND M/S VIGRO
Your Excellence,

We wish to render our considered legal opinion over this matter as follows.

Facts:

2. M/S Uganda Electricity generation company limited(UEGCL) company engaed in electricity generation
and distribution.

2.As part of the rural electtriccation project due to conatant power shut down in Kigenz.due to constant
power shut down has scaled down the commercial activies and as such production has been affected
and is likely to affect the goals of parish development model in the region.

3.that the government of Uagnda and the ministry of energy and mineral allocated an Project estamte
investment of US dollars 456,000,000/= to UEGCL to contruct 450MW hydrp power dam to resolve the
power shortage kigezi region.

4.UEGCL contracted RM CONSULT BAVARIA as the project management consultant under proper
procument procedure. Which also contracted MS VIRGO a hydro power and constructing company
based USA was the BEB

ENERGY SHW Princetech carried out a detailed feasibility as well as environment and social assessment
studies for the hydro power project. The company also designed and prepared tender documents and
performing project supervisson noting that the project will take about 3years,it was imperative that
processed immedeily after the design and technical project documents were approved such that the
project will be ready by 2026 general election.

Exicited about the deal and for fear it being grabbed by other competitors,M/S VIGRO MD Ms Nashiba
kasaulini quicly sent a contract to UEGCL for approval immideatly the BEB Notice period ended.the
contract was approved and signed same day between CEO of UEGCL and the MD VIRGO.

MS VIRGO subcontracted NIGEL’-HYDRO LTD for supplying turbain generator sets and related
equipment for the project,

The project team of MS VIRGO commenced work and is currently at 40% completion stage.
MS VIRGO raised and invoice of USD 470,000 to MS UEGCL but its C.E.O has met stiff resistance FROM
LEGAL and compliance officer mr Dumba Kyasi who has objected the payment agurging that there is no
bidding contract and tax payers money can not be spent in such arrangement

The populous in the beneficiary area have learnt of the said stellment and are very worried since many
of them had already taken out huge loans and invested in several value addition chains in atinticipation
of excess electricy upon completion of the said project.\MS VIRGO is threatening legal action to recover\
there monies expended on the dam projects the office the president has contracted3434

ou to settle the impuss.

Issue:
1. Whether there was a valid bid contract award to VIGRO Hydro Power Energy ?

Analysis of the issue

Section 52 Public procurement and disposal of public Assets Act of 2003 provides for Best Evaluated Bid

A contract shall be awarded to the bidder with the best evaluated offer ascertained on the basis of the
methodology and criteria detailed in the bidding documents.

Section 76(3) Public procurement and disposal of public Assets Act of 2003 is to the effect that an
award shall be confirmed by a written contract signed by both the provider and the procuring and
disposing entity only after the period specified by regulations made under this Act has lapsed, funding
has been committed in the full amount over the required period. Notice of the best evaluated bidder

Regulation 4 of the public procurement and disposal of public assets(contracts)Regulations 2014

provides that

 A procuring and disposing entity shall within five working days after the decision of the contract
committee to award a contract;
 Deliver a copy of the notice of the best evaluated bidder to all bidders who participated in the
biding process
 Display a notice of best evaluated bidder on the notice board of the procuring and disposing
entity
 Send a copy of the notice of the best evaluated bidder to the authority for publication on the
website of the authority
 Notice of the best evaluated bidder shall not amount to a contract
 The notice of the shall state the name of the best evaluated bidder, propose total contract price
and where any scores were awarded during evaluation process, the total score of the best
evaluated bidder.
 The date of the notice
 Procuring and disposing entity shall not award a contract during a period of 10days from date of
the notice
  The procuring and disposing entity shall obtain proof of delivery of the notice of the best
evaluated bidder to all bidders.
 The notice of the best evaluated bidder shall be displayed on the notice board of the procuring
and disposing entity and the website pf the Authority until the day following the expiry of the
period specified.ie 10 days

Period during which no further action maybe taken

Regulation 5 of the public procurement and disposal of public assets(contracts)Regulations 2014

provides that
 A procuring and disposing entity shall not take any action on the contract awared until the lapse
of the 10days after the date of the display of the Notice of the best evaluated bidder under
regulation 4

Procedure for awarding contract

Regulation 7 of the public procurement and disposal of public assets(contracts)Regulations 2014
provides that
I. A procuring and disposing entity shall not issue a contract document ,purchase
order or other communication in any form conveying acceptance of a bid that
binds a procuring and disposing entity to a contract with a provider until
a. The contracts committee makes a decision to award the contract
b. The accounting officer confirms that the contract price is not higher
than the market price established prior to the commencement of the
procuring process
c. The period specified in regulation 5 in these regulations
expires,following the notice of the best evaluated bidder.
d. The accounting officer confirms that the procurement is not subject to
administrative review
e. The full amount of funding for the period of the proposed contract is
commited
f. All relevant agencies including the Attorney General make necessary
approvalof the contract.

Formation of a contract

Regulation 11 of the public procurement and disposal of public assets(contracts)Regulations

2014 provides that
a) A procuring and disposing entity shall not enter into a contract until all the requirements of
regulation 5 are complied with
b) A contract shall be formed when the contract is signed and issued by the procuring entity.
Our opinion

Therefore,upon perusing carefully through the available facts we find that there was no validly
binding contract between Vigro and UECGL

The Award of the contract need to be investigated since it appears the procedures in regulations 4,5,7
and 11 of the public procurement and public disposal (contructs)Regulation 2014 was not properly
followed

……………………

Associates of E7 firm Lira