Uganda Firms Locked Out
of Iraq Contracts
SPECIAL CORRESPONDENT
UGANDAN COMPANIES that had wanted to participate in the reconstruction of Iraq have lost out after missing the December 15 deadline.
Dr J. Rwanyange, a senior official in the Ministry of Foreign Affairs who has been co-ordinating Uganda companies interested in the $18.6 billion venture, said that information about the deadline for prime bidders had been released too late for Ugandan companies to put in their bids.
"We had a meeting with the American Economy and Commerce officials last week and they explained that the deadline for 15th December, 2003 was for prime contractors who had by then applied; so the bids have been closed with only US companies as prime contractors," said Rwanyange.
"Ugandan companies can now only go there as sub-contractors of US companies that put in their bids on December 15," he added.
Dr Rwanyange said at least 20 local firms from the private and public sector had shown interest in participating in the reconstruction project but did not know that the bid for the prime contractor had been closed till last week's meeting.
But according to Foreign Affairs officials, some of the Ugandan companies had the capacity to bid as prime contractors, but ignored the information given to them.
For example, the Minister of State for Foreign Affairs, Tom Butime, in early December announced that the government of the US had invited Uganda formally as prime contractors in the reconstruction of Iraq.
The companies include Ziwa, Mugoya and Roko Construction, while organisations that have shown interest in the project include Uganda Manufacturers Association (UMA), Uganda Exports Promotion Board (UEPB) and Uganda Investment Authority (UIA).
Many of the local firms, with the exception of the construction companies, are interested in supplying food stuffs to the now starving Iraq population.
Dr Rwanyange said a steering committee headed by members of UEPB and UMA, and officials from Foreign Affairs Ministry had been set up. The committee will start its work this week.
He explained that the major purpose is to look at the two major opportunities (prime and sub contractors) and study the information given by the US government in the different sectors that this project will entail so that they know what to bid for specifically.
However, Dr Rwanyange said that Ugandan firms could still play an active role as sub contractors, adding that it was upto the local companies to take up the challenge.
He added that the Ministry of Foreign Affairs could only inform the companies of available opportunities and co-ordinate information between the US embassy and the locally interested firms.
Uganda was allowed to bid for the project because it was one of the African countries that supported US attack on Iraq.
Other African countries that supported the US and are eligible to benefit from the project include Rwanda, Ethiopia and Eritrea.
According to information from the American Embassy, countries to benefit from the project were limited in order to protect the security interests of the US and to limit competition from the US, Iraq and members of the coalition in the Iraq War.
Work to begin this year will include electrical, communication, public building, transportation, public works, water, sewage, security and justice system and small business projects.
There is also provision of equipment for the new Iraq army, restoration of Iraq oil service (northern and southern Iraq), and programme management service for the oil service.
The condition for the contractors is to employ Iraqi nationals and work closely with the Iraq public and government officials as the programme is aimed at developing the destroyed country.
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