Uganda - Selling Factors and Techniques Uganda - Selling Factors
The Public Procurement Disposal of Assets Act requires that all public procurement be based on key principles including non-discrimination, transparency, accountability and fairness, competition, confidentiality, economy, efficiency, and ethical conduct. Except for situations where exigency or other factors demand otherwise, the law requires that all government procurements are sourced through a public tendering process. However, President Museveni has awarded several large infrastructure contracts without a competitive process and in the absence of any exigency. The Act takes precedence over any regional or international agreements on procurement to which Uganda is a party.
Procurement applications are handled by procurement and disposal committees established at both the central and local government levels.
The Public Procurement and Disposal of Public Assets Authority (PPDA) audits government procurements, oversees the public procurement processes, and monitors compliance by all government entities at both the central and local levels. Government procurement requests must include: a procurement schedule for every bid notice issued; standard formats for invitation of bidders (bid notices); and specified time frames for all government procurement activities. All bid evaluations must begin within 14 working days from the date of closing the bid. In practice, bid decisions often take several months, and several businesses have accused officials of soliciting, or being influenced by, bribes while analyzing bids. More information about PPDA is located on its website: PPDA.
Laws regulating the petroleum sector include “national content” provisions that require contractors to employ a certain percentage of Ugandans, and prioritize the use of local goods, and services. Specific national content requirements are provided in The Petroleum (Exploration, Development and Production) Regulations, 2016.
The government requires companies engaged in the petroleum sector to submit an annual report documenting compliance with the local content provisions. A broader draft Local Content Bill (currently before parliament) is aimed at extending these provisions to other sectors by making it obligatory for all government contractors to prioritize using locally-sourced goods and services, when they are available and are of competitive quality.
Uganda often finances public works projects through borrowing from Multilateral Development Banks and individual country Export-Import banks. Please refer to “Project Financing” Section in “Trade and Project Financing” for more information. Uganda is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (WTO - Parties, observers, and accessions).