By Our Reporter
NATIONAL
Government has made changes in the public procurement regime with the aim of fostering the participation of local providers, youths, persons with disabilities and women.
The changes were announced by the Minister of State for Finance Planning and Economic Development, Henry Musasizi in a press conference on, 28th March, 2024 at the Uganda Media Center.
The targeted Service Providers are Ugandan, resident, and East African Community providers.
The two new guidelines provide affirmative interventions for Local providers, women, youth and persons with disabilities.
“I am pleased to unveil the Guideline on Reservation Schemes to Promote the Participation of Local Providers in Public Procurement. This guideline, issued under Sections 50(2), 59B, and 97 of the PPDA Act, 2003 marks a pivotal moment in our procurement system,” the Minister said.
The first guideline dictates that ALL products manufactured in Uganda are to be procured by Procuring and Disposing Entities from national and resident providers.
Secondly that ALL inputs manufactured in Uganda must be procured by entities and government contractors from national and resident providers and should it happen that foreign contractor is given such a contract, and then at least 30% of the value of works must be subcontracted to local providers.
The second guideline is on the reservation scheme aimed at promoting the participation of Registered Associations of Women, Youth, and Persons with Disabilities.
This guideline aims at facilitating the participation of Women, Youth, and Persons with Disabilities in public procurement processes.
15% of the entity’s annual procurement budget shall be reserved for award to registered associations of Women, Youth, and Persons with Disabilities.
A Central government entity shall reserve procurement requirements for supplies, works, consultancy, and non-consultancy services whose value does not exceed Shs30 million to registered associations of Women, Youth, and Persons with disabilities.
A Local Government Procuring and Disposing Entity shall reserve procurement requirements for supplies, works, consultancy, and non-consultancy services whose value does not exceed Shs10 million to registered associations of Women, Youth, and PWDs.
The associations of Women, Youth, or Persons with Disabilities owned enterprises may take the form of Incorporated companies, partnerships, savings, and cooperative societies, or Owned Community-Based Organisations.
The guideline has provided for simplified bidding procedures for the Women, Youth, and Persons with Disabilities (PWDs) registered associations.
For example submit a bid Securing Declaration for instead of bid security and exemption from paying bidding fees while participating in the procurement processes under the reservation scheme.
Women youth and PWDs will be supported by Procuring and Disposing Entities to participate and partake of opportunities in government contracting for all procurements within certain thresholds and at least 15 % of the Entities’ procurement budgets.
The Minister says the new guidelines will ensure that local businesses have equitable access to government contracts and will encourage and boost domestic production of the much-imported goods and services (i.e. import substitution).
