SGR Deal: CCECC Manager Says There Was No Bidding for Contract

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In short
The CCECC Manager Bai Yang told the select Committee probing the awarding of a contract for the Standard Gauge Railway that they were invited to the Country to construct the railway by President Yoweri Museveni.

The Manager of China Civil and Engineering Construction Corporation (CCECC)  Bai Yang whose contract to construct the Standard Gauge was terminated has confirmed that there was no bidding process followed in the award of the contract.
The CCECC Manager Bai Yang told the select Committee probing the awarding of a contract for the Standard Gauge Railway that they were invited to the country to construct the railway by President Yoweri Museveni.
However, Bai Yang told the Committee that he could not clearly remember what the President said in the letter and promised to avail the letter to the Committee before the end of the week.
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Yang had appeared before the committee together with advocate Mugarura Jotham.
The deal to construct the railway triggered controversy when State Minister for Works John Byabagambi cancelled an understanding with China Civil Engineering Construction Corporation (CCECC) and picked China Harbour Engineering Corporation (CHEC) to construct the eastern railway line.
CCECC then went to court seeking justice in what they called unfair withdrawal of contract.
Later four MPs led by Lwemiyaga County Theodore Sekikubo petitioned Parliament citing flaws in the procurement process.
Now while before the Committee, the Manger CCECC said that they had pulled out the court case in which they were demanding Ugx 30billion compensation from government.
He said that the pulling out of court was prompted by a directive from CCECC regional manager and CCECC President who thought to consider the relationship with the Government of Uganda.
Yang also noted that their pulling out of court was not based on the alleged promise from government of awarding the company a contract to construct the Western Route in further.
He however confirmed that Government had made a promise to award them the Western Route Construction Contract but denied it.
Yang further dismissed allegations that President Museveni had threated CCECC management to send them out of the country without withdrawing the case from court.
The select committee also learnt that in CCECC's feasibility study, they were to construct the railway gauge at US dollars 4.2 billion and yet the contract was awarded to CHEC which is constructing the gauge at US dollars 6.7 billion.
The Committee Chairperson who is also the Nakifuma County MP Kafeero Ssekitoleko demanded that CCECC avails all documents relating to their business with Government concerning the construction work before the end of the week.
He also cited that CCECC was being aversive in their submissions which he said is a clear indicator that they are trying to hide information.
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The Minister of Works and Transport Abraham Byandala is expected before the select committee tomorrow.


About the author

Olive Nakatudde
Olive Nakatudde is a URN journalist based in Kampala. Nakatudde has been a URN staff member since 2013.

Nakatudde started out in journalism in 2009 with Dembe FM radio in Kampala. In 2012, Nakatudde joined Voice of Africa as a political reporter. She has been a photographer since her journalism school days at Makerere University.

Nakatudde is interested in good governance and public policy, which she reports on intensively from the Uganda Parliament. She is a keen follower of cultural affairs in Buganda Kingdom and covers the kingdom's Lukiiko (parliament). Nakatudde also reports on education and health.