Business

Amended procurement law takes effect next month

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By Brian Ssenoga

Posted  Friday, February 28   2014 at  02:00

In Summary

Thresholds for different methods have been increased

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Kampala- The amended Public Procurement and Disposal of Public Assets (PPDA) Act will come in force on Monday (March 3), much to the relief of procurers and suppliers.

When contacted by the Daily Monitor on Tuesday, PPDA authority spokesperson Vincent Mugaba confirmed by saying the Act will come into force immediately after the finance minister Maria Kiwanuka has made the official pronouncement.

Mr Mugaba said: “The Public Procurement and Disposal Act came in force in 2003 but there have been a number of complaints and issues in certain specific areas which necessitated an amendment and this will certainly affect how business is transacted.”

According to a document seen by this newspaper, among the changes to the original Act are revised thresholds for different procurement methods.

For instance, under the supplies and non-consultancy services, restricted bidding will be used for procurements whose value is from Shs100 million to less than Shs200 million, open bidding will still be maintained as a default method of procurement of supplies whose value is Shs200 million and above.

However, special thresholds have been set for the procurement of medicines and other health supplies where open bidding maybe used irrespective of the procurement on condition that the providers are registered by the National Drug Authority except in case where the body has not registered a provider for a specific requirement.

bssenoga@ug.nationmedia.com