News Column

Study PPP Bill to avoid bad contracts, minister tells committee

February 26, 2014

FARIDAH KULABAKO -1



Kampala- The minister of Finance has told the Finance Committee of Parliament to evaluate potential Public-Private Partnerships (PPP) when the law comes into force to ensure economic benefits outweigh the financial costs.

Speaking at the opening of a four-day Finance Committee retreat that seeks to consider the PPP Bill on Monday, Ms Maria Kiwanuka said all potential PPPs should be quantified and assessed for the benefits that accrue.

"The economic benefits accruing to the people of Uganda such as tax revenue, employment and increased knowledge sharing among others should exceed the financial costs. No PPP should be approved when the costs to be incurred by government outweigh the benefits," Ms Kiwanuka said in Entebbe on Monday.

Ms Kiwanuka, who said PPPs should be restricted to long term contracts, infrastructure projects and appropriate risk sharing between parties, urged Members of Parliament to ensure that all contracts receive adequate scrutiny before signing to avoid unfair conditions that could be disadvantageous to government are sneaked in.

"We need to respect the terms and conditions in a contract because if you don't, you have to forget about investors. We should ensure that contracts are thoroughly scrutinized so that we don't have bad agreements that might cost government money," she said.

Uganda is in the process of passing a PPP law which seeks to, among others, act as an alternative channel to finance infrastructure development.

fkulabako@ug.nationmedia.com


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Source: Daily Monitor, The (Uganda)


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