implementation of a ppp transaction in the rural water sector in uganda
implementation of a ppp transaction in the rural water sector in uganda
implementation of a ppp transaction in the rural water sector in uganda
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Ma<strong>in</strong> Results <strong>of</strong> <strong>the</strong> Legal Due Diligence <strong>in</strong> Busembatia<br />
Responsibilities <strong>of</strong> <strong>the</strong> Local Authority<br />
• Sett<strong>in</strong>g <strong>of</strong> Tariffs – This is <strong>the</strong> responsibility <strong>of</strong> <strong>the</strong> Local Authority but<br />
<strong>the</strong> practice is to base it on an approved bus<strong>in</strong>ess plan.<br />
• Manage and Control Assets – The Local Authority has <strong>the</strong> mandate to<br />
manage and ma<strong>in</strong>ta<strong>in</strong> <strong>the</strong> assets transferred to it by GoU. However, <strong>the</strong><br />
Local Authority is not allowed to dispose <strong>of</strong> <strong>the</strong> assets.<br />
• Term<strong>in</strong>ation - O<strong>the</strong>r than for non- performance/non-payment <strong>of</strong> <strong>the</strong><br />
agreed management fee requires a 90 day notice by ei<strong>the</strong>r party.<br />
Provision is made for compensation to <strong>the</strong> PO for <strong>the</strong> unexpired portion<br />
<strong>of</strong> <strong>the</strong> contract.<br />
• Dispute resolution – <strong>in</strong>itially all disputes must be resolved through<br />
mediation and arbitration before be<strong>in</strong>g referred to courts.<br />
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