(1)
The Cabinet shall prescribe the value of an agreement for which the approval of Cabinet is required before an agreement is signed by an Accounting Officer.
(2)
The Minister shall, by statutory instrument, publish the prescribed value.
(3)
Where an agreement is of a value for which the approval of Cabinet is required before it is signed by an Accounting Officer, the Accounting Officer shall not sign the agreement without the approval of Cabinet
(4)
An agreement shall be forwarded to Cabinet for approval where the Accounting Officer confirms that-
(a)
the best evaluated bid meets the requirements of affordability, value for money and substantial technical, operational, and financial risk transfer;
(b)
the contracting authority has put in place a management plan that explains the capacity, including the mechanisms and procedures of the contracting authority, to implement, manage, enforce, monitor, and report on the project effectively; and
(c)
satisfactory due diligence has been carried out on the private party in relation to the competence and capacity of the private party to enter into the agreement.
(5)
A public private partnership agreement shall contain clear and detailed descriptions of the rights and obligations of the contracting authority and the private party.
(6)
An agreement shall among others provide for the following-
(a)
the type of the public private partnership and the specifications of the infrastructure or service to be provided, the sum to be paid to the private party and how the amounts, if any, to be paid for the use of the infrastructure or provision of the service shall be shared by the contracting authority and the private party;
(b)
the time schedule for the performance of the project, the conditions under which the schedule may be amended, the penalties and bonuses to be applied in the event of failure to comply with the time schedule or early completion, the duration of the agreement and the conditions under which the term of the project may be extended or abridged;
(c)
the formal concession to the private party of the use or exploitation of the assets of the contracting authority or of Government, which are necessary for the implementation or operation of the infrastructure or provision of the service, and any payments which may be envisaged;
(d)
the financing of the implementation of the project;
(e)
approval by the contracting authority for the financing of the project by the private party, where necessary, and the procedure for amending that approval;
(f)
the allocation of risk between the contracting authority and the private party and the consequences of events representing force majeure;
(g)
the insurance policies for the project or for the private party;
(h)
the protection of the environment;
(i)
the protection of intellectual property rights;
(j)
the mode of operation, maintenance and exploitation of the project and penalties for failure to meet performance standards;
(k)
the amounts to be paid for the use of the infrastructure or service and the manner in which the payments are to be collected and where necessary, the reasons and methods for revision of the payments;
(l)
where necessary, the method of allocating between the contracting authority and the private party the benefits that may accrue from a restructuring of the loan of the private party or after a specific percentage return on the capital of the private party is attained;
(m)
the extent of the guarantees to be provided by the private party, for the proper implementation, operation, and maintenance of the infrastructure, or for the proper provision of the service;
(n)
the substitution of the private party or the creditor by the contracting authority and the circumstances under which the substitution may be permitted;
(o)
the payment of compensation and the reparation of any loss or damage caused where the contracting authority or the private party violates its contractual obligations;
(p)
the grounds for termination of the agreement and the consequences of this termination;
(q)
the law to govern the agreement;
(r)
the procedure for resolving disputes between the contracting authority and the private party;
(s)
a detailed definition of the minimum operation and maintenance requirements;
(t)
the procedures for the delivery of the project to the contracting authority at the end of the agreement period, specifications of the obligations for training and transfer of know-how from the private party to the contracting authority, the specifications applicable to the project on handover and the guarantees, as well as their duration, following the handover of the infrastructure or the service by the private party;
(u)
provisions for the hygiene and safety of the employees and the users of the infrastructure or the service;
(v)
the methods to be used for ensuring quality during the implementation and operation of the infrastructure or provision of the service;
(w)
the methods to be used to monitor the performance and operation of the infrastructure or provision of the service;
(x)
minimum capital of the private party and share transfer restrictions;
(y)
rights of the private party to guarantee securities to creditors; and
(z)
direct agreements and step in rights, where applicable.
(6)
The Minister may by regulations, specify the form in which a project agreement under this Act shall be drawn.
(7)
The agreement entered into by a contracting authority under this Act shall be subject to the provisions of the Laws of Uganda.
(8)
The agreement shall only be amended or varied with the approval of the Cabinet.
(9)
The Cabinet shall not approve an amendment, or variation to a project agreement under subsection (8) unless the variation or amendment is necessary for-
(a)
the project to continue to provide value for money;
(b)
the project to continue to be affordable, where such amendment, variation or waiver has a financial implication;
(c)
the continued transfer of appropriate risks to the private party;
(d)
the continued provision of efficient and effective service to the public and
(e)
the continued protection and preservation of the environment.
(10)
The Minister shall, within one month after signing the agreement, lay before Parliament, a copy of the agreement.
(11)
Any amendment or variation made under subsection (8) shall be laid before Parliament within one month of the amendment or variation.