Ugandan President Yoweri Museveni has directed government to terminate contracts with companies that are found to have unstable financial positions while undertaking projects.
The president gave this directive on Wednesday while meeting with China Harbour Engineering Company (CHEC), the 5th largest infrastructure developers in China, at State House Entebbe.
’’You have the technical know-how alright, but what is also very important is your financial capacity. If we find you to be wanting, we shall say bye bye to you,” he emphasized.
The purpose of the meeting was to update the President on progress towards construction and upgrading Uganda’s railway to standard gauge.
President Museveni had also sought to find out the company’s source and value of financing to ensure no shortfalls during the course of the Project. He, therefore, directed that a clause to that effect be included in the contract agreement.
The President said that the China Harbour Engineering Company Ltd will be one of the two Construction Companies Government of Uganda is going to work with in improving the Railway Transport system in Uganda, especially the railway line connecting Kampala to Tororo in Eastern Uganda.
Company Officials of CHEC led by their Vice President Lin Yichong informed Government that they were backed by funding from the Chinese Government owned Exim Bank.
Some of the African countries where CHEC has undertaken such Projects include Mozambique and South Sudan in Africa.
The Vice President of China Harbour engineering company, Mr.Lin Yichong, thanked the Government of Uganda under the leadership of President Museveni for providing a conducive environment for business investment in Uganda.