PROGRESS ON THE IMPLEMENTATION OF THE RESERVATION SCHEME TO PROMOTE LOCAL CONTENT IN PUBLIC PROCUREMENT

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The Authority in pursuit of the Government Policy of “Buy Uganda Build Uganda” issued Guidelines on “Reservation schemes to promote local content in public procurement”.

The revised Guideline dated 15th February 2018 provide for exclusive reservation of contracts by threshold for both national and resident providers for:

  • Road works costing UGX 45 Billion and below and other public sector works below UGX 10 Billion’
  • Consultancy services that cost is UGX 1 Billion and below;
  • Supplies whose cost is UGX 1 Billion and below;
  • Non-consultancy services whose cost is UGX 200 Million and below.
  • Reservation of at least 30% of the value of works contracted to foreign companies through subcontracting of sub-works and supply of materials, equipment and services to local providers
  • Supply of uniforms and related clothing materials, electrical cables and conductors and medicines and medical supplies to manufacturers with facilities in Uganda.

PPDA has been monitoring the implementation of the Guideline and noted the following:

  1.  increase in the value of contracts for works awarded to local providers
  2. increase in the value of contracts for supply of medicines and medical supplies
  3. Increase in the value of contracts for uniforms awarded to manufacturers.
  4. Increased value of contracts for works – UGX 736.9Bn (28%) of the total procurement budget of UGX 2.6Tn in Uganda National Roads Authority FY 18/19 from 24% in the FY 2017/18.
  5. Increased value of contracts for supply of medicines and medical supplies from UGX 156Bn in the FY 2017/18 to UGX 163Bn in the FY 2018/19 by National Medical Stores.
  6. Procurement  of uniforms awarded to manufacturers e.g Southern Range Nyanza Limited was awarded contracts worth UGX 22Bn in the FY 2018/19 from UGX 8 Bn reported in the FY 2017/18.

As the oversight authority on all matters of Public Procurement and Disposal, we advise all PDEs to adhere to this guideline and implore local bidders in the sectors under the reservation to take note of this existing opportunities and supply government.