Museveni Orders Gov’t to Terminate Contracts of Financially Unstable Companies


President Yoweri Museveni has ordered the government to terminate any contracts of companies which are found undertaking projects while financially unstable.

President Yoweri Museveni held a meeting with China Harbour Engineering Company (CHEC) officials on Wednesday afternoon 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,” Museveni said.

The President made the order at a meeting held on Wednesday with the China Harbour Engineering Company (CHEC) which is in-charge of upgrading Uganda’s railway to a standard gauge.

CHEC, the 5th largest infrastructure developers in China, is one of the two construction companies the government is going to work with in improving the railway transport system in Uganda, especially the railway line connecting Kampala to Tororo in Eastern Uganda.

The construction company members met President Museveni at State House Entebbe to update him on the progress towards construction and upgrading Uganda’s railway to standard gauge.

This railway line will connect Uganda to South Sudan, Kenya,and Rwanda.

’’As there are so many projects to be worked on, we are going to work first on railway line bordering Kenya, Sudan and Rwanda,” the President said.

In his remarks, the Vice President of the CHEC officials, Lin Yichong, assured the president of full commitment noting that they are being funded by a Chinese Government owned Exim Bank.

President Museveni therefore, directed that a clause to that effect be included in the contract agreement.

CHEC undertakes projects like roads , airport, railway, and bridge construction. Some of the African countries where CHEC has undertaken such Projects include Mozambique and Southern Sudan.


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