Other Related Laws
The Constitution of the Republic of Uganda, 1995.
The Constitution is the supreme law from which all other laws derive their validity. It follows therefore that the Constitution prescribes particular obligations that have to be observed. In the PPP Cycle, Contracting authorities often have to get involved in several agreements that have an implication on government; thus, Article 119 of the Constitution regulates such transactions by subjecting them to government approval through the office of the Attorney General. Similarly, any borrowings or funding arrangements for a PPP by a contracting authority are prohibited save as authorized by Article 159 of the Constitution.
Also key to note are the constitutional provisions on expropriation which are of particular importance in the framework of infrastructure projects since land is required to carry out these projects. In Uganda, expropriation can take place only if (1) the acquisition is necessary for public use or in the interest of defence, public safety, public order, public morality or public health; and (2) the expropriated person receives prompt payment of fair and adequate compensation and a right of access to a court of law (Article 26 of the Constitution). Thus, a PPP transaction must be structured in such a manner that all Constitutional obligations are fulfilled.
The Public Finance Management Act, 2015.
The Public Finance Management Act, 2015 (PFM) is the key law that governs Government fiscal and macroeconomic management. The law prescribes the manner of dealing with all public revenues, expenditures, expenditure commitments, management of Government debts, grants and other connected matters.
PPP Transactions are characterized by several financial commitments and implications on Government and private parties thus transactions that involve fiscal commitments on the side of Government are subject to the provisions of the PFM Act amongst other governing laws.
The Public Procurement and Disposal of Public Assets Act, 2003(As amended).
The Public Procurement and Disposal of Public Assets Act (PPDA) governs the procurement and disposal chain for any Government entity. The PPP model does however require a unique procurement structure hence justification for the unique procurement rules and methods provided for under the PPP Act. Nevertheless, contracting authorities may have to apply conventional procurement methods at some stages of the PPP project cycle hence the applicability of the PPDA and rules to govern such stages of the PPP Cycle. For example, procurement of transactional advisory services in the PPP process by a contracting Authority is done under the PPDA since the rules there under apply to a contracting authority as a procuring and disposing entity. Furthermore, a contracting authority by virtue of Section 52(a) of the PPP Act may seek guidance from the Procurement Authority regarding other types of contracting arrangements and applicable procurement procedures and documents that may potentially affect a prospective project.
National Audit Act, 2008.
The National Audit Act 2008 establishes the Office of the Auditor General with powers to audit and report on public accounts. Section 18 of the Act empowers the Auditor General to inquire into, examine, investigate and report, as he or she considers necessary, on the expenditure of public monies disbursed, advanced or guaranteed to a private organisation or body in which Government has no controlling interest. This generally gives the Auditor General discretionary powers to investigate and report on the expenditures in a PPP project. Similarly, Section 30(1) of the PPP Act 2015 requires the Auditor General to audit each PPP project and present an audit report of the same to the Parliament within nine months of the end of the audit.
National Environment Act, Cap 153.
The National Environment Act provides for sustainable management of the environment and establishes the National Environment Management Authority ("NEMA") as the lead agency for environmental protection. The Act includes the principles of environment management and details the rights to a decent environment. It follows from this Act that a developer of a project may have to carry out an environmental impact assessment if its project has an impact on the environment. The projects, for which an environmental impact assessment is necessary are listed in the third schedule of the Act and these include infrastructural projects that characterize the PPP modal.
Land Act Cap 227 (As amended).
This governs the tenure, ownership and management of land. According to the Act, all land in Uganda is vested in the citizens of Uganda and can be held in accordance with the recognized tenure systems. This Act will be particularly relevant as regards land acquisition and land use rights for PPP Projects.
Land Acquisition Act, 1965.
The Act deals with the compulsory acquisition of land for public purposes and prescribes the procedure to be followed where land is to be compulsorily acquired. It thus follows that where PPP projects involve expropriation of land, the procedures and obligations under this Act must be followed/ fulfilled.
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