Uganda: unsolicited PPP proposals

The law and the institutions

The Public Private Partnerships Act, 2015 is Act 13 of 2015. It was assented on 5 August 2015 and published in Uganda Gazette No. 53 on 16 September 2015 ². It came into force on 1 October 2015 under a commencement instrument ².

Section 5 sets up the Public-Private Partnerships Committee. The Permanent Secretary of the ministry responsible for finance, or a representative, chairs it. Members include the Attorney General, the Permanent Secretaries for the Office of the Prime Minister, lands and local governments, a National Planning Authority representative and four non-public officers. The Director of the PPP Unit is secretary ¹.

Section 10 sets up the PPP Unit within the ministry responsible for finance. Under section 11 it is the secretariat and technical arm of the Committee ¹. The Ministry of Finance PPP page says the Committee oversees and approves all PPP projects ³.

What section 34 requires

Section 34(2) defines an unsolicited proposal as one that is independently originated and developed by the proposer and prepared without the supervision of the contracting authority ¹.

• Contents: the objective and significance of the project, a technically detailed description, a cost-benefit analysis and reasons why it merits treatment outside competitive bidding ¹
• Condition (a): the project meets National Development Plan objectives and has a feasibility study under section 22(2) ¹
• Condition (b) to (d): innovative design, an innovative development or management approach, or a new cost-effective method of service delivery ¹
• Evaluation: innovation and merit, contribution to the authority's strategic objectives, and whether the cost is realistic, affordable and justified ¹

Approval and competition

Section 34(6) says an accepted unsolicited proposal shall be subjected to the competitive bidding procedure and be open to all interested bidders. Section 34(7) says the tender documents must state how the proponent's proprietary interests will be compensated if it does not win ¹.

Under section 22 the feasibility report goes to the Committee, and no private party may be procured without the Committee's prior written approval. Cabinet approval applies to agreements above a value threshold set under section 26 ¹.

A World Bank country profile updated on 22 February 2023 lists six procurement methods in sections 31 to 36 of the Act. They are open bidding with pre-qualification, restricted bidding, direct procurement, unsolicited proposals, competitive dialogue and negotiated procedure ⁵.

Funding and gaps in the rules

Section 29 creates the Project Development Facilitation Fund. It supports the preparation phase of a project, the procurement process and project appraisal ¹.

Section 34 sets no time limits, no review fee and no bonus or right to match for the proponent ¹. The Ministry of Finance PPP page describes the PPP Regulations as being at an advanced stage of development. It says they will cover bidding methods, negotiation, restricted bidding and direct procurement ³. The page gives no date for them ³.

Transport sector guidelines

The Ministry of Works and Transport prepared Guidelines for Submission and Assessment of Unsolicited Proposals in the Transport Sector. The copy on its website is marked Final Draft, July 2013 ⁴.

The draft sets three stages. They are an initial submission with a strategic assessment, a detailed proposal under a participation agreement, and a final binding offer that leads to a Cabinet memorandum ⁴. It lists eight assessment criteria, including value to government, risk allocation, the proponent's capability and affordability ⁴.

The draft prefers market testing. Where a proposal goes to tender, the proponent gets a guaranteed seat in the final round of a best and final offer process. The ministry may, at its sole discretion, reimburse direct costs of a detailed proposal ⁴.