Ministry of Finance and Economic Development has said in a statement today that the 66km road plans for construction will be put on halt because all technically acceptable tenders exceed the financial resources available.
The road was to be upgraded to paved standard
Government has cancelled the
tender process for the construction of the Atiak-Laropi road after bidders
asked for more money above the planned budget.
Ministry of Finance and Economic
Development has said in a statement today that the 66km road plans for
construction will be put on halt because “all technically acceptable tenders
exceed the financial resources available.”
The road was supposed to be
constructed under the Development Initiative for Northern Uganda (DINU) and was
to be funded by the European Union. The tender can only go on if there is a
negotiated tendering. DINU is 151 million Euros six-year initiatives by the EU
aimed at the development of northern Uganda.
This means that the government
will hand-pick a contractor and negotiate with them the appropriate price
without competitive bidding.
“Should a new tender procedure be
launched for this project, a new contract notice will be published, unless the
contracting authority awards the contract through a negotiated procedure – in
which case only the award of the contract will be published,” the statement
The Atiak-Laropi road connects
traffic to the Gulu-Nimule Road, the primary trade route between Uganda and
The government called for bids in
December 2018 and said the upgrading of the road was “part of the regional,
national and international route connecting the remote north-western region of
Uganda and Southern Sudan to the Ugandan capital at Kampala, via the regional
capital at Gulu.”
Tenderers were asked to provide a
tender guarantee of 500,000 euros (2 billion Shillings) when submitting their
tender, which indicates the capacity of the tenderer to carry out the job.