The Attorney General has advised the government against the immediate termination of the contract for the private operator of the Kampala–Entebbe Expressway. Deputy Attorney General Jackson Karugaba Kafuuzi presented the advice to Parliament, cautioning that any termination must strictly follow the terms of the contract to avoid costly international arbitration. He explained that the operator must first be formally notified of any alleged breach and given 14 days to remedy it. Where improvement works are delayed, the contract provides for liquidated damages and reductions in payments. Termination can only be considered after specified contractual thresholds have been met. The Attorney General therefore advised the Ministry of Works and Transport to conduct a comprehensive assessment to establish whether the operator’s performance meets the threshold for termination. The dispute centres on the performance of the French company EGIS Road Operation S.A., which was contracted in 2021 to operate and maintain the expressway. Operations were later transferred to Pinnacle Security Limited through a novation agreement. Parliament’s Committee on Physical Infrastructure had recommended immediate termination of the operator’s contract, citing alleged failures in maintenance, toll collection irregularities and revenue leakages. Some MPs and the Government Chief Whip, however, argued that terminating the contract with only a short period remaining would not offer value for money. The Kampala–Entebbe Expressway remains a critical national asset linking the capital to Entebbe International Airport. King Musah Media will continue monitoring developments around the management of the expressway.
Attorney General Warns Against Immediate Termination of Expressway Operator Contract
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